AI Takeaway
Applied Materials (AMAT) delivered a strong Q2 FY2026 with revenue of $7.91B (+11.4% YoY), net income surging 31.3% to $2.81B, and EPS of $3.51 (diluted), driven by expanding margins and robust demand for semiconductor equipment.
Revenue
$7.91B
++11.41% YoY
EPS (Basic)
$3.53
++33.71% YoY
Gross Margin
49.9%
++0.81% YoY
Operating Income
$2.52B
++16.32% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 11.4% YoY to $7.91B in Q2 FY2026, reflecting continued strong demand for chip manufacturing equipment as semiconductor manufacturers invest in advanced process nodes and capacity expansion.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin improved to 49.9% (from 49.1% a year ago), operating margin expanded to 31.9% (from 30.5%), and net margin reached 35.5%, indicating improved operational efficiency and favorable product mix.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Net income of $2.81B grew 31.3% YoY — nearly three times the revenue growth rate of 11.4% — suggesting meaningful below-the-line benefits such as investment gains, tax benefits, or other non-operating income contributing to profitability.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockApplied Materials derives a significant portion of revenue from customers in China and other regions subject to evolving U.S. export control regulations. Tightening restrictions on semiconductor equipment exports could materially reduce addressable market and revenue. This risk has intensified given ongoing U.S.-China technology tensions.
Source: Source: 10-Q Risk Factors (inferred from financial data and industry context)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.86 versus the $2.72 analyst consensus — a +5.2% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.91B | $7.1B | +11.41% |
Cost of Revenue | $3.96B | $3.62B | +9.63% |
Gross Profit | $3.95B | $3.48B | +13.26% |
Operating Income | $2.52B | $2.17B | +16.32% |
Net Income | $2.81B | $2.14B | +31.31% |
EPS (Basic) | $3.53 | $2.64 | +33.71% |
EPS (Diluted) | $3.51 | $2.63 | +33.46% |
R&D Expense | $1.03B | $893M | +15.01% |
SG&A Expense | $397M | $423M | -6.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $40.29B | $33.63B | +19.78% |
Current Assets | $22.57B | $19.71B | +14.53% |
Total Liabilities | $16.38B | $14.67B | +11.63% |
Current Liabilities | $9B | $8B | +12.53% |
Stockholders' Equity | $23.91B | $18.96B | +26.10% |
Cash & Equivalents | $6.3B | $6.17B | +2.14% |
Long-Term Debt | $5.26B | $5.46B | -3.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.53B | $2.5B | +1.40% |
Investing Cash FlowYTD | $-1.74B | $-676M | -157.25% |
Financing Cash FlowYTD | $-1.75B | $-3.69B | +52.70% |
Dividends PaidYTD | $730M | $651M | +12.14% |
Share BuybacksYTD | $737M | $2.99B | -75.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 49.9% | 49.1% | +0.81% |
Operating Margin | 31.9% | 30.5% | +1.35% |
Net Margin | 35.5% | — | — |
ROE | 11.7% | — | — |
ROA | 7.0% | — | — |
Current Ratio | $2.508 | — | — |
Debt to Equity | $0.685 | — | — |
Other companies in Semiconductor Materials & Equipment
Based on the filing data, Applied Materials reported Q2 FY2026 diluted EPS of $3.51, up 33.5% YoY from $2.63, and revenue of $7.91B, up 11.4% YoY. Whether these figures beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the SEC filing itself.
The standout takeaways are: revenue grew 11.4% to $7.91B, net income surged 31.3% to $2.81B (far outpacing revenue growth), and both gross margin (49.9%) and operating margin (31.9%) expanded YoY. The balance sheet also strengthened with stockholders' equity rising 26.1% to $23.91B and long-term debt declining to $5.26B.
Applied Materials grew revenue 11.4% YoY to $7.91B in Q2 FY2026, up from $7.10B in Q2 FY2025, driven by strong demand for semiconductor manufacturing equipment. Gross profit grew even faster at 13.3% YoY to $3.95B, reflecting favorable product mix and pricing power.
The filing data points to key risks including U.S. export control restrictions on semiconductor equipment sales (particularly to China), dependency on a concentrated set of large chipmaker customers whose capex cycles drive AMAT's revenue, and a sharp 157.2% increase in investing cash outflows YTD. R&D execution risk is also notable as spend grew 15% YoY to $1.03B.
AMAT's financial health appears strong: it holds $6.30B in cash, has a current ratio of 2.51, a manageable debt-to-equity ratio of 0.68, and generated $2.53B in operating cash flow year-to-date. Stockholders' equity grew 26.1% YoY to $23.91B, and long-term debt declined 3.8% to $5.26B, reflecting a well-capitalized balance sheet.