Applied Materials (AMAT) reported record fiscal Q3 revenue of $9.11 billion, a 25% increase from $7.3 billion in the same quarter last year and exceeding estimates of $8.99 billion. The company’s adjusted net income for the quarter reached $2.79 billion, translating to earnings of $3.50 per share, significantly above Wall Street’s expectations of $3.38.
Despite these strong results, AMAT shares fell by 5% in trading following the announcement, reflecting profit-taking after a 260% rise over the past three years. Looking ahead, the company projects fiscal Q4 revenue of approximately $10.25 billion, along with adjusted earnings of $4.02 per share, both above analyst consensus. Applied Materials’ Semiconductor Systems division revenue rose to $7.04 billion, with DRAM accounting for 26% of total revenue, up from 22% last year.
Management anticipates a 70% growth in its advanced-packaging revenue by 2026, emphasizing the expanding demand for semiconductor manufacturing technologies. This aligns with the company’s strategy of investing in R&D, with nearly $25 billion reinvested over the past decade, while also maintaining a strong cash return to shareholders through dividends and share repurchases.
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