Applied Materials Beats Q4 Estimates and Guides Q1 Revenue Above $7.65 Billion
Applied Materials reported Q4 revenue of $7.01 billion, topping estimates by 1.8% despite a 2.1% year-over-year decline, and delivered adjusted EPS of $2.38, 7.8% above analyst forecasts. The company guided Q1 revenue to $7.65 billion at the midpoint, 8.1% ahead of consensus, on robust AI and advanced packaging demand.
1. Q4 CY2025 Results
Applied Materials reported Q4 revenue of $7.01 billion, a 2.1% year-over-year decline but 1.8% above consensus, while adjusted EPS reached $2.38, beating estimates by 7.8%. Adjusted EBITDA was $2.23 billion, yielding a 31.9% margin, outperforming forecasts.
2. Q1 CY2026 Guidance
The company issued Q1 revenue guidance of $7.65 billion at the midpoint, 8.1% above analysts’ $7.08 billion consensus, and set adjusted EPS guidance at $2.64 versus $2.28 expected, reflecting strong AI-related orders.
3. Growth Drivers
Management cited robust demand in AI, leading-edge foundry-logic and memory segments, along with momentum in advanced packaging and effective supply chain and cost controls, as key contributors to both results and outlook.
4. Future Outlook
Applied Materials expects sustained wafer fabrication equipment spending driven by AI, advanced packaging, DRAM and NAND investments, underpinned by ongoing R&D investments and operational discipline to support margin expansion.