Applied Materials Q4 Revenue Beats by 1.8%, Guides Q1 Revenue 8.1% Above Forecast
Applied Materials reported Q4 revenue of $7.01 billion, down 2.1% year-on-year but 1.8% above forecasts, and delivered adjusted EPS of $2.38, 7.8% ahead of consensus. It guided Q1 revenue to $7.65 billion (8.1% above estimates) and EPS to $2.64, prompting a 5.5% jump in shares.
1. Q4 CY2025 Performance
Applied Materials delivered Q4 CY2025 revenue of $7.01 billion, marking a 2.1% decline year-over-year yet beating analyst forecasts by 1.8%. Adjusted EPS reached $2.38, topping consensus by 7.8%, while adjusted operating income of $2.11 billion implied a 30% margin, underscoring resilient profitability.
2. Q1 CY2026 Guidance
Management set Q1 CY2026 revenue guidance at a $7.65 billion midpoint—8.1% above analysts’ forecasts—and projected adjusted EPS of $2.64, representing a significant uplift versus the $2.28 consensus. The upbeat outlook reflects anticipated strength in semiconductor capital spending, particularly in AI computing applications.
3. Market Reaction and Outlook
Shares jumped 5.5% on the stronger-than-expected results and guidance, as investors cheered robust top-line beats and margin resilience. CEO Gary Dickerson cited accelerated AI-related customer investments, and analysts forecast roughly 9.5% revenue growth over the next 12 months, signaling a potential tech cycle recovery.