AMAT Applied Materials, Inc.
Price Chart
Executive Summary
Applied Materials reported record Q2 FY2026 revenue of $7.91B (+11% YoY) and record GAAP EPS of $3.51 (+33% YoY), but non-GAAP EPS of $2.86 missed the $2.68 consensus by -11.3% due to a large unrealized gain on strategic investments inflating GAAP results. The company guided Q3 revenue to $8.95B ±$500M and non-GAAP EPS to $3.36 ±$0.20, implying strong sequential growth, and raised its dividend by 15%. The headline EPS miss on the Street-followed non-GAAP metric is the key negative, partially offset by record revenue, strong guidance, and AI-driven demand commentary.
Key Financial Metrics
Actionable Insight
The non-GAAP EPS miss is the headline negative, but record revenue and strong Q3 guidance ($8.95B midpoint, +13% QoQ) suggest the miss is driven by one-time items (unrealized gains inflating GAAP, higher opex). Watch for analyst revisions on the Street-convention non-GAAP EPS and whether the AI capex cycle sustains the >30% equipment growth forecast. The 15% dividend hike signals management confidence in cash flows.
Key Facts
- Record Q2 FY2026 revenue of $7.91B, up 11% YoY from $7.10B
- Non-GAAP diluted EPS of $2.86 missed consensus of $2.68 by -11.3%
- GAAP diluted EPS of $3.51 (record), up 33% YoY, boosted by $685M unrealized gain on strategic investments
- Q3 FY2026 guidance: revenue $8.95B ±$500M and non-GAAP EPS $3.36 ±$0.20
- Semiconductor Systems revenue $5.965B (+10.4% YoY), AGS revenue $1.665B (+17.3% YoY)
- Operating cash flow $845M; free cash flow $210M, down 80% YoY due to higher capex
- Dividend raised 15% to $0.53/share; $400M in share repurchases during the quarter
- CEO expects semiconductor equipment business to grow >30% in calendar 2026
Financial Impact
Non-GAAP EPS miss of -11.3% vs consensus ($2.86 actual vs $2.68 estimate); revenue beat of +2.9% vs $7.69B consensus ($7.91B actual)
Risk Factors
- Non-GAAP EPS miss of -11.3% may trigger negative analyst revisions and short-term selling pressure
- Free cash flow fell 80% YoY to $210M due to elevated capex ($635M) and working capital build
- Guidance midpoint implies non-GAAP EPS of $3.36, which is above the prior consensus of $2.68 for Q3 — execution risk on supply chain readiness
- China revenue concentration at 27% of total exposes to geopolitical/tariff risks
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3295316 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 18, 2026
3d ago
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ANALYST-DOWNGRADE
| — | awaiting T+5 | — | — |
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May 14, 2026
6d ago
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8-K
| — | awaiting T+5 | — | — |
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May 14, 2026
6d ago
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Press Release
| — | awaiting T+5 | — | — |
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May 8, 2026
12d ago
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ANALYST-UPGRADE
| $443.34 $413.27 | ▼ −6.78% | ▼ −6.70% | $423.95 (−4.37%) |
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May 5, 2026
16d ago
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ANALYST-UPGRADE
| $410.72 $431.20 | ▲ +4.99% | ▲ +3.00% | $423.95 (+3.22%) |
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May 4, 2026
17d ago
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Press Release
| $390.18 $443.62 | ▲ +13.70% | ▲ +10.76% | $423.95 (+8.66%) |
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May 1, 2026
19d ago
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ANALYST-UPGRADE
| $336.56 $297.39 | ▼ −11.64% | ▼ −10.31% | $423.95 (+25.97%) |
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Apr 23, 2026
28d ago
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Press Release
| $402.56 $382.59 | ▼ −4.96% | ▼ −6.44% | $423.95 (+5.32%) |
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Apr 21, 2026
4w ago
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Press Release
| $394.25 $381.00 | ▼ −3.36% | ▼ −4.44% | $423.95 (+7.54%) |
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Mar 13, 2026
9w ago
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Press Release
| $341.30 $356.75 | ▲ +4.53% | ▲ +6.65% | $423.95 (+24.22%) |
US Market Status
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