APPLIED MATERIALS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS

Investor Relations Contact:

Mike Sullivan (408) 986-7977

mike_sullivan@amat.com

Media Contact:

Ricky Gradwohl (408) 235-4676

ricky_gradwohl@amat.com

• Record quarterly revenue $10.41 billion, up 53 percent year over year
• Quarterly GAAP gross margin 50.4 percent and non-GAAP gross margin 50.6 percent, up 240 basis points and 250 basis points year over year, respectively
• Quarterly GAAP EPS $3.40 and record non-GAAP EPS $4.16, up 43 percent and 92 percent year over year, respectively
• Record annual revenue $34.45 billion, up 21 percent year over year
• Annual GAAP gross margin 50.0 percent and non-GAAP gross margin 50.1 percent, both up 130 basis points year over year
• Record annual GAAP EPS $12.62 and record non-GAAP EPS $12.89, up 46 percent and 37 percent year over year, respectively
• Unveiled the EPIC Center in Silicon Valley and added four new R&D partnerships, bringing our total number of announced EPIC engagements to 15

SANTA CLARA, Calif., Nov. 12, 2026 — Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 25, 2026.

Fourth Quarter Results

Applied generated record revenue of $10.41 billion. On a GAAP basis, the company reported gross margin of 50.4 percent, record operating income of $3.66 billion or 35.1 percent of revenue, and earnings per share (EPS) of $3.40.

On a non-GAAP basis, the company reported gross margin of 50.6 percent, record operating income of $3.68 billion or 35.3 percent of revenue, and record EPS of $4.16.

The company generated record cash from operations of $3.30 billion and distributed $2.42 billion to shareholders through $2.00 billion in share repurchases and $421 million in dividends.

Fiscal Year Results

Applied generated record revenue of $34.45 billion. On a GAAP basis, the company reported gross margin of 50.0 percent, record operating income of $11.09 billion or 32.2 percent of revenue, and record EPS of $12.62.

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On a non-GAAP basis, the company reported gross margin of 50.1 percent, record operating income of $11.42 billion or 33.1 percent of revenue, and record EPS of $12.89.

The company generated record cash from operations of $8.87 billion and distributed $4.75 billion to shareholders through $3.18 billion in share repurchases and $1.57 billion in dividends.

“Applied Materials delivered record results in fiscal 2026, and we are on track to grow our Semiconductor Systems business more than 40 percent in our calendar 2026,” said Gary Dickerson, President and CEO. “AI continues to fuel strong incremental demand for semiconductors and Applied has built the most-enabling portfolio to advance the AI-computing roadmap, putting us in a great position for multi-year revenue and profit growth.”

“With technology leadership in the most critical areas of the wafer fab equipment market, Applied Materials increased fiscal fourth quarter revenue by 53 percent year over year and non-GAAP earnings per share by 92 percent,” said Brice Hill, Senior Vice President and CFO. “We generated record quarterly free cash flow of $2.6 billion and distributed over $2.4 billion to shareholders, including the largest quarterly share buyback in more than eight years.”

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Results Summary

A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.

Recent Highlights

EPIC Center

• Unveiled the EPIC Center in Silicon Valley, the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. By bringing chipmakers, equipment partners and university researchers into the same building as Applied’s scientists and engineers, EPIC enables parallel rather than sequential development of materials, equipment and process technology, resulting in shorter learning cycles and faster commercialization of the innovations that will power the AI era.
• Announced four new EPIC Center partnerships, bringing the total to 15 announced to date.
• Intel will join EPIC as a founding partner to accelerate development of chipmaking innovations for next-generation transistors, interconnects and advanced packaging technologies. The collaboration will bring together cutting-edge capabilities from Applied’s EPIC Center and Intel’s R&D campus in Hillsboro, Oregon to shorten time-to-market of advanced semiconductor technologies essential to AI computing.
• KIOXIA Corporation will join the EPIC Center as an innovation partner to advance next-generation memory technologies. Applied and KIOXIA will work together at the EPIC Center on advanced memory-cell and structure creation, multi-chip stacking architectures, and new materials engineering approaches designed to increase memory density and performance for the AI era.
• BE Semiconductor Industries N.V. (Besi) will join the EPIC Center as an innovation partner. This is an expansion of Applied’s longstanding strategic partnership with Besi and extends the companies’ co-innovation beyond hybrid bonding into new interconnect architectures and applications supporting the semiconductor industry’s AI-driven scaling roadmap.
• The UCLA Samueli School of Engineering will join the EPIC Center as a research partner. Together with Applied’s scientists and engineers, UCLA researchers will work to solve semiconductor materials and integration challenges with a focus on shortening the time it takes to bring breakthrough research to commercialization.

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New Products and Technologies

• Introduced the VeritySEM™ 20 metrology system, a next-generation critical dimension scanning electron microscope (CD-SEM). The VeritySEM 20 system is engineered to address the patterning control challenges of high-NA EUV by using advanced eBeam metrology innovations and AI-driven process efficiencies to accurately measure thinner photoresists, support tighter process windows and enable faster recipe creation.

Corporate Initiatives

• Entered into an accelerated share purchase agreement to increase Applied’s investment in Besi to approximately 20 percent of Besi’s outstanding shares. The share purchase would add to Applied’s current investment in Besi, which was initially made in April 2025.
• Hosted an Investor Breakfast Presentation during SEMICON West, where Applied executives presented the company’s longer-term growth expectations and outlined how our leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.

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Business Outlook

Applied’s total revenue and non-GAAP diluted EPS for the first quarter of fiscal 2027 are expected to be as follows:

This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

Fourth Quarter and Fiscal Year Reportable Segment Information

Effective in the first quarter of fiscal 2026, management moved our 200-millimeter equipment business to Semiconductor Systems. The business was previously included in Applied Global Services. Additionally, effective in the first quarter of fiscal 2026, management began fully allocating corporate support costs to our operating segments. Prior-period numbers have been recast to conform to the current-year presentation. Display operating segment financial results are included in the Other category balances below.

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Calendar Year Information

Applied's calendar 2026 refers to the period beginning with the second quarter of fiscal 2026 through the first quarter of fiscal 2027.

Use of Non-GAAP Financial Measures

Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including, as applicable, certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; legal settlement charges; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items; and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Webcast Information

Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.

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Forward-Looking Statements

This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, legal matters, our business outlook for the first quarter of fiscal 2027 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; demand for semiconductor chips and electronic devices, including demand related to the development and use of AI technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

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APPLIED MATERIALS, INC.

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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APPLIED MATERIALS, INC.

UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

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APPLIED MATERIALS, INC.

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

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Additional Information

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APPLIED MATERIALS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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APPLIED MATERIALS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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APPLIED MATERIALS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within other and included in consolidated operating income.

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APPLIED MATERIALS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE

UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW