Overview
- On Thursday, Applied Materials reported roughly $9.1 billion in fiscal third-quarter revenue and adjusted EPS above consensus, and it raised fourth-quarter guidance to a $9.75 billion–$10.75 billion range.
- Management upgraded its multi‑year outlook, forecasting more than 30% semiconductor equipment growth in 2026 and projecting advanced packaging revenue to rise over 50% as chipmakers shift to chiplet designs.
- Options traders had been pricing in about a 7% post‑earnings swing and showed a bearish put skew, and the stock fell in extended trading despite the beat as investors digested the guidance.
- Wall Street stayed mostly bullish with raised price targets and new coverage, but Applied trades at a high forward multiple that makes future guidance and margin commentary the main drivers of share moves.
- The results reinforce that AI infrastructure spending is lifting capital investment for logic, memory and packaging, yet customers’ order timing, China exposure and margin sustainability into fiscal 2027 remain the key risks investors will watch.