Applied Materials Reports Q3 Revenue Up 25% to $9.12 Billion; Non-GAAP Gross Margin 50.4%

Applied Materials issued its fourth-quarter fiscal guidance alongside results for the quarter ended July 26. Non-GAAP gross margin was 50.4%, and earnings per share reached a record $3.50. Operating cash flow totaled $3.04 billion, and the company returned $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.

President and Chief Executive Officer Gary Dickerson said the company again set a quarterly performance record, including the highest sequential revenue growth in its history.

Chief Financial Officer Brice Hill said revenue growth will remain strong in the second half of calendar 2026, driven particularly by DRAM, leading-edge foundry logic, and advanced packaging.

During the earnings call, Hill noted that customer-provided business visibility has reached an all-time high, with some order discussions extending to 2030. Applied Materials supplies equipment for core wafer fabrication steps such as deposition, chemical mechanical polishing, and inspection, benefiting from increased capital spending by chipmakers on AI infrastructure. The company's shares had more than doubled in 2026 before the results were released; they fell more than 5% in after-hours trading.