Applied Materials, Inc.

Record growth + strong profitability (what went right): - Fiscal Q3’26 revenue: $9.1B, +15% sequential and +25% YoY (record). - Non-GAAP gross margin: 50.4% (+40 bps QoQ, +150 bps YoY); 13th consecutive quarter of YoY gross margin expansion. - Non-GAAP operating margin: 34% (+190 bps QoQ, +330 bps YoY). - Non-GAAP EPS: $3.50, +22% QoQ, +41% YoY (record). - Semiconductor Systems: $7.0B, +18% QoQ, +27% YoY; DRAM +52% YoY (includes HBM packaging). - Applied Global Services (AGS): $1.8B, +22% YoY, strong subscription + transactional; AGS gross margin 35.6% (up 180 bps YoY).

Upward demand visibility + multiyear confidence (outlook): - Management says demand strengthened again in the quarter and they revised upward 2026 revenue growth expectations (now confident to grow faster than the overall market). - Customers are providing longer-term commitments and rolling 8-quarter forecasts; larger customers reportedly moving visibility conversations out up to ~2030. - 2027 expectations: “Another strong growth year” with customers aggressively scaling advanced capacity while optimizing yield/output of existing fabs. - Core growth engines: leading-edge foundry logic, DRAM (especially HBM), and advanced packaging; these are cited as ~80% of wafer fab equipment growth in 2026–2027.

Company guidance for the next quarter (Q4’26): - Q4 revenue: $10.25B ± $0.5B (+51% YoY). - Non-GAAP EPS: $4.02 ± $0.20 (+85% YoY). - Segment guidance: Semiconductor Systems ~$7.9B (+62% YoY); AGS ~$1.84B (+22% YoY); Other ~$510M (display). - Non-GAAP gross margin: guided ~50.4% in Q4 (about flat near current levels, +32 bps YoY). - Margin nuance: company expects some ramp costs (hiring/adding customer support + resources), helping explain why gross margin is not expanding as much QoQ/near-term.