Applied Materials, Inc.

Record financial performance + margin expansion - Q3 FY26 revenue: $9.1B (+15% QoQ, +25% YoY) — described as record-breaking with the highest QoQ revenue growth in Applied’s history. - Profitability: Non-GAAP gross margin 50.4% (+40 bps QoQ, +150 bps YoY); Non-GAAP operating margin 34% (+190 bps QoQ, +330 bps YoY). - EPS: $3.50 non-GAAP EPS (+22% QoQ, +41% YoY). - Cash returns: $860M returned to shareholders in the quarter ($420M dividends + $440M buybacks). $12.8B remaining authorization; expects 80–100% of free cash flow returned.

Guidance/outlook: strong near-term growth; margin “flat” near term - Q4 FY26 guidance (company): Revenue $10.25B ± $0.5B (+51% YoY); non-GAAP EPS $4.02 ± $0.20 (+85% YoY). - Q4 segment mix expectations: - Semiconductor Systems ~ $7.9B (+62% YoY) - AGS ~ $1.84B (+22% YoY) - Other ~ $510M, but modeling note: other ≈ $400M/quarter on average through 2027. - Q4 margins: non-GAAP gross margin ~50.4% (+32 bps YoY) — i.e., near-term flat vs Q3-ish levels. - Big drivers emphasized: 2H calendar-year DRAM ramp plus leading-edge logic and advanced packaging strength.

Demand visibility improved; expects 2026 to outperform and 2027 to be another strong year - Management says customers are providing longer-term commitments and rolling 8-quarter forecasts; largest customers show visibility that extends further in discussions (Brice: up to ~5 years perspective for roadmaps at largest customers). - 2026: multiple upward revisions to revenue growth forecast during the year (and confidence to grow faster than the overall market). - 2027: high confidence for another strong growth year, supported by continued AI infrastructure buildout and a gap between demand and supply for advanced chips.