Applied Materials Reports $7.91B Q2 Revenue, Lifts Equipment Growth Outlook Over 30%
Applied Materials posted record Q2 revenue of $7.91 billion, up 11% year-over-year, with adjusted EPS of $2.86 driven by accelerating AI infrastructure demand. It raised its 2026 semiconductor equipment growth outlook to over 30%, guided Q3 revenue of $8.95 billion with $3.36 EPS, and boosted its dividend 15% to $0.53.
1. Record Q2 Performance
Applied Materials delivered record second-quarter revenue of $7.91 billion, up 11% year-over-year, with adjusted EPS of $2.86 and GAAP EPS of $3.51, reflecting strong AI infrastructure demand across leading-edge logic, DRAM and advanced packaging markets.
2. Raised 2026 Outlook and Q3 Guidance
The company raised its calendar 2026 semiconductor equipment growth forecast to over 30%, and projected fiscal third-quarter revenue of $8.95 billion with adjusted EPS of $3.36 per share, surpassing prior analyst expectations.
3. Segment Contributions and Innovation Hub
Semiconductor Systems revenue reached $5.97 billion (10% growth) while Applied Global Services grew 17% to $1.67 billion; Applied also expanded its Silicon Valley EPIC Center with partners like TSMC, SK hynix and Micron to accelerate next-generation chip technology.
4. Cash Generation and Returns to Shareholders
Non-GAAP gross margin rose to 50%, the company generated $845 million in operating cash flow, deployed $400 million to share repurchases, paid $365 million in dividends and raised its quarterly payout 15% to $0.53 per share.