[Edaily Reporter KIM YOON JI ] Semiconductor equipment manufacturer Applied Materials released earnings guidance on the 13th (local time) that exceeded market expectations, but the market reaction was lukewarm. This is believed to be due to heightened market expectations for Applied Materials, which is considered a key beneficiary of the artificial intelligence (AI) boom.
In its earnings announcement after the market closed that day, Applied Materials reported that revenue for the third quarter of fiscal year 2026 (May–July) reached $9.12 billion, a 25% increase from the same period last year. Adjusted earnings per share (EPS) came in at $3.50. Both figures exceeded market expectations (revenue of $9.0 billion, adjusted EPS of $3.42).
The company projected that revenue for the fourth quarter of the fiscal year (August–October) would reach approximately $10.3 billion. The average analyst estimate compiled by Bloomberg was $9.62 billion, though some forecasts approached $10 billion. The adjusted EPS forecast for that period was $4.02, which also exceeded the expected $3.72.
Following the earnings announcement, the stock price fell by about 3% in after-hours trading. Despite the strong results, the company failed to meet investors’ heightened expectations. Applied Materials’ stock price has more than doubled so far this year.

Last month, rival KLA also saw its stock price fall after reporting earnings. While overall results were in line with analysts’ expectations, free cash flow fell short of expectations.
Applied Materials is considered a bellwether for the semiconductor industry, as semiconductor manufacturers purchase the company’s equipment when they need to expand production.
Amid ongoing shortages of memory semiconductors and other components, Applied Materials’ customers—including SK hynix(000660)and Micron Technology—are rushing to build new production facilities.
CEO Gary Dickerson offered an optimistic outlook for next year. He noted that customers are asking Applied Materials to increase production to receive equipment more quickly. Based on the outlooks provided by customers for the coming quarters, Dickerson expressed confidence that strong growth will continue into 2027.
“Customers continue to ask us to expand our production capacity,” he said. “They are finding creative ways to secure more cleanroom space and are accelerating their demand for equipment deliveries.”
CEO Decker said, “We are working to expand production as quickly as possible,” but noted that it will take time to increase production capacity enough to meet demand.