Global Finance News
13 Nov 2026, 09:14
Applied Materials Slips 0.8% After Hours Despite Record Q4 Results and Strong FY2027 Outlook
Applied Materials (NASDAQ: AMAT) shares fell about 0.8% in after-hours trading despite reporting record fiscal fourth-quarter revenue and earnings, strong margin expansion and a solid outlook for the first quarter of fiscal 2027.
Fourth-quarter revenue jumped 53% year over year to a record $10.41 billion. GAAP EPS increased 43% to $3.40, while non-GAAP EPS surged 92% to a record $4.16. Non-GAAP operating income reached $3.68 billion, representing a 35.3% margin.
Gross profitability also improved significantly. GAAP gross margin rose 240 basis points to 50.4%, while non-GAAP gross margin increased 250 basis points to 50.6%.
For the full fiscal year, Applied Materials generated record revenue of $34.45 billion, up 21%, with record GAAP EPS of $12.62 and record non-GAAP EPS of $12.89. Annual cash flow from operations reached a record $8.87 billion.
Management highlighted accelerating AI-related semiconductor demand and said the Semiconductor Systems business is on track to grow more than 40% in calendar 2026. Applied also continued investing in next-generation chipmaking technologies through its EPIC Center and new partnerships with Intel, KIOXIA, Besi and UCLA.
For fiscal Q1 2027, Applied expects revenue of about $11.1 billion, plus or minus $500 million, and non-GAAP EPS of $4.35, plus or minus $0.20, implying another sequential step higher from Q4.
The 0.8% after-hours decline appears to reflect elevated expectations and possible profit-taking rather than weakness in the report. Applied delivered record revenue, sharply higher earnings and strong guidance, but after a major AI-driven semiconductor equipment rally, investors may have been looking for an even larger upside surprise.
Applied Materials (NASDAQ: AMAT) shares fell about 0.8% in after-hours trading despite reporting record fiscal fourth-quarter revenue and earnings, strong margin expansion and a solid outlook for the first quarter of fiscal 2027.
Fourth-quarter revenue jumped 53% year over year to a record $10.41 billion. GAAP EPS increased 43% to $3.40, while non-GAAP EPS surged 92% to a record $4.16. Non-GAAP operating income reached $3.68 billion, representing a 35.3% margin.
Gross profitability also improved significantly. GAAP gross margin rose 240 basis points to 50.4%, while non-GAAP gross margin increased 250 basis points to 50.6%.
For the full fiscal year, Applied Materials generated record revenue of $34.45 billion, up 21%, with record GAAP EPS of $12.62 and record non-GAAP EPS of $12.89. Annual cash flow from operations reached a record $8.87 billion.
Management highlighted accelerating AI-related semiconductor demand and said the Semiconductor Systems business is on track to grow more than 40% in calendar 2026. Applied also continued investing in next-generation chipmaking technologies through its EPIC Center and new partnerships with Intel, KIOXIA, Besi and UCLA.
For fiscal Q1 2027, Applied expects revenue of about $11.1 billion, plus or minus $500 million, and non-GAAP EPS of $4.35, plus or minus $0.20, implying another sequential step higher from Q4.
The 0.8% after-hours decline appears to reflect elevated expectations and possible profit-taking rather than weakness in the report. Applied delivered record revenue, sharply higher earnings and strong guidance, but after a major AI-driven semiconductor equipment rally, investors may have been looking for an even larger upside surprise.
