Investing.com — Applied Materials reported third-quarter earnings and revenue above Wall Street expectations on Thursday, helped by strong demand for semiconductor manufacturing equipment as artificial intelligence investment continues to drive chip production. <\/p>\n
The company reported adjusted earnings of $3.50 per share, beating analysts’ estimate of $3.40, while revenue rose to $9.12 billion, above the $8.99 billion consensus. <\/p>\n
Applied Materials said rapid adoption of artificial intelligence was driving unprecedented demand for its materials engineering products and said it expected to grow faster than the semiconductor equipment market in 2026. The company also said it expected another strong growth year in 2027, citing increased visibility into customer demand. <\/p>\n
Semiconductor Systems revenue rose to $7.04 billion from $5.56 billion a year earlier, with DRAM accounting for 26% of sales compared with 22% a year ago. Revenue from Applied Global Services increased to $1.78 billion from $1.46 billion. <\/p>\n
The company said growth in the second half of the calendar year should remain strong, particularly in DRAM, leading-edge foundry and logic, and advanced packaging. It is also investing in additional manufacturing capacity to support projected demand through the end of the decade. <\/p>\n
Applied Materials forecast fourth-quarter adjusted earnings of $3.82 to $4.22 per share, compared with analysts’ estimate of $3.68. It expects revenue of $9.75 billion to $10.75 billion, above the $9.54 billion consensus. <\/p>\n
The company generated $3.04 billion in operating cash flow during the quarter and returned $860 million to shareholders through $440 million of share repurchases and $420 million in dividends. <\/p>\n
Applied Materials also expanded its EPIC Center research partnerships to 11 engagements, including new collaborations with Broadcom, the University of California, Berkeley and SCREEN Semiconductor Solutions, as it seeks to accelerate development of technologies for next-generation AI systems. <\/p>\n
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