Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Applied Materials' Q3 FY2026 Form 10-Q covers the three and nine months ended July 26, 2026. Revenue grew across both reportable segments, with Semiconductor Systems benefiting from stronger foundry and logic spending on leading-edge technologies and higher DRAM investments, while Applied Global Services saw increased long-term service agreement revenue and spares demand. Gross margin expanded on higher revenue, favorable product mix, increased average selling prices, and lower material and manufacturing costs. Interest and other income, however, swung to a net loss of $100 million from a $396 million gain a year earlier on higher unrealized loss on equity investments, partially offsetting the strong operating performance.
Revenue
$9.12B
+24.83% YoY
EPS (Diluted)
$3.17
+42.79% YoY
Gross Margin
50.3%
+1.5 pts YoY
Operating Income
$3.08B
+37.71% YoY
Source: SEC XBRL
Applied Materials (AMAT) reported Q3 FY2026 revenue of $9.12B, up 24.8% year over year. Operating margin was 33.7%, up 3.1 points from 30.6% a year earlier. AMAT's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 3.50 | 3.45 | Beat +1.3% |
| Jun 2026 | 2.86 | 2.72 | Beat +5.2% |
| Mar 2026 | 2.38 | 2.25 | Beat +5.9% |
| Dec 2025 | 2.17 | 2.14 | Beat +1.6% |
Adjusted (non-GAAP) EPS of $3.50 versus the $3.45 analyst consensus — a +1.3% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.17.
2 reported segments · SEC XBRL
Segment revenue totals $8.82B; with $294M of reconciling items (corporate, unallocated and eliminations) it ties to the $9.12B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure AMAT itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Gross margin for Q3 FY2026 increased 1.5 points year over year to 50.3%, primarily driven by higher revenue, increases in average selling prices, lower material and manufacturing costs, and favorable product mix.
Source: 10-Q Item 2 MD&A
Foundry and logic customer spending increased on stronger demand for leading-edge manufacturing technologies, while memory customer spending rose due to increased investments in DRAM technology transitions.
Source: 10-Q Item 2 MD&A
Applied Global Services revenue increased primarily due to higher long-term service agreement revenue and customer spending on spares.
Source: 10-Q Item 2 MD&A
The first nine months of fiscal 2026 included a $253 million charge for an export controls compliance settlement and $12 million in restructuring charges, consisting primarily of severance.
Source: 10-Q Item 2 MD&A
Interest and other income, net swung to a $100 million expense in Q3 FY2026 from $396 million income a year earlier, primarily due to higher unrealized loss on equity investments.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Semiconductor Systems accounted for 79.8% of segment revenue, making results highly sensitive to swings in wafer fab equipment demand from foundry, logic, and memory customers.
Source: 10-Q Segment Breakdown (XBRL)
Asia Pacific customers, including China, Korea, and Taiwan, generated 80% of revenue in Q3 FY2026, with China alone at 28%; export controls and trade restrictions could significantly reduce sales.
Source: 10-Q Item 2 MD&A
Interest and other income, net swung to a $100 million expense in Q3 FY2026 from $396 million income a year earlier due to higher unrealized loss on equity investments, adding volatility to net income.
Source: 10-Q Income Statement (XBRL)
The company recorded a $253 million charge in the first nine months of FY2026 related to a previously disclosed export controls compliance matter, indicating ongoing regulatory exposure.
Source: 10-Q Income Statement (XBRL)
The effective tax rate fell to 12.7% in Q3 FY2026 from 30.6% a year earlier due to one-time items; future tax rates could increase and reduce net income.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 9.12 $B | 7.30 $B | +24.83% |
Cost of Revenue $B | 4.53 $B | 3.74 $B | +21.10% |
Gross Profit $B | 4.59 $B | 3.56 $B | +28.75% |
Operating Income $B | 3.08 $B | 2.23 $B | +37.71% |
Net Income $B | 2.54 $B | 1.78 $B | +42.66% |
EPS (Basic) $ | 3.20 $ | 2.23 $ | +43.50% |
EPS (Diluted) $ | 3.17 $ | 2.22 $ | +42.79% |
R&D Expense $B | 1.10 $B | 0.90 $B | +22.09% |
SG&A Expense $M | 411.00 $M | 428.00 $M | -3.97% |
Answers draw on this SEC filing and the data on this page
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.
AMAT reported Q1 FY2026 revenue of $7.01B (down 2.1% YoY) while net income surged 71% to $2.03B, largely driven by a non-operating gain that boosted margins well above operating-level performance.
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