Overview
- Revenue came in at $6.8 billion with adjusted EPS of $2.17, beating estimates as gross margin reached 48% and sales fell 3% year over year.
- For fiscal Q1, the company forecasts $6.85 billion in revenue plus or minus $500 million and adjusted EPS of $1.98 to $2.38, both above consensus at the midpoint.
- Management reiterated an expected roughly $600 million reduction to fiscal 2026 revenue from expanded U.S. export restrictions and projected lower China equipment spending next year.
- About $110 million of products were not shipped in Q4 due to an affiliate rule later suspended after Trump–Xi talks, and executives said the suspension will re-enable roughly $600 million in sales this fiscal year.
- Shares fell more than 3% after the report as the China outlook weighed on sentiment, while the company points to AI-driven memory demand strengthening in the second half of 2026 and continues a previously announced workforce reduction of about 4%.