Santa Clara, Calif., February 12, 2026, 13:58 PST
- Applied Materials projected quarterly sales and earnings that topped expectations, with shares jumping roughly 9% in late trading.
- The chip-equipment maker pointed to a surge in AI computing investment and its highest-ever DRAM-related revenue.
- Export controls and fluctuating demand from China continue to hang over the market.
Applied Materials is looking for stronger second-quarter revenue and profit than analysts had penciled in, pointing to rising demand for AI processor-related equipment as a key driver. Shares climbed roughly 9% after hours. Reuters
The outlook comes as investors hunt for evidence that the AI surge is moving past just high-end chips, spilling over into the memory and packaging equipment that boost performance and reduce energy use.
Applied highlighted the ongoing memory chip crunch, saying the shortage has pressured suppliers into expanding capacity—and picking up more manufacturing tools in the process.
Applied is looking for revenue to come in around $7.65 billion—give or take $500 million—this quarter. Adjusted earnings per share? The company pegs that at roughly $2.64, with a 20-cent swing either way.
The company posted fiscal first-quarter revenue of $7.01 billion, slipping 2% year-over-year. Net income, though, jumped 71% to $2.03 billion. GAAP earnings per share reached $2.54; non-GAAP EPS came in at $2.38, according to the company. Globenewswire
The company’s non-GAAP results exclude items it considers outside core operations—including select acquisition-related charges—aimed at making period-to-period comparisons clearer for investors.
Applied’s operating cash flow landed at $1.69 billion, according to the release. The company sent $702 million back to shareholders via buybacks and dividends.
CEO Gary Dickerson said, “Applied Materials delivered strong results in our fiscal first quarter, fueled by the acceleration of industry investments in AI computing.” He also pointed out rising demand for “high-bandwidth memory and advanced packaging.” High-bandwidth memory, a stacked chip, helps AI processors shuttle data at higher speeds.
Brice Hill, the CFO, said the company’s been ramping up capacity. He cited moves to grow system manufacturing, fortify supply chains, and boost inventories.
The Semiconductor Systems division posted $5.14 billion in revenue. DRAM made up 34% of that figure, a jump from 27% the previous year. Applied Global Services reported $1.56 billion; services and spares reached an all-time high, according to the company.
Optimism is drawing attention throughout the semiconductor equipment sector, where Applied faces Lam Research and KLA. If memory and advanced packaging spending keeps climbing, the AI cycle could shuffle who comes out on top.
Still, the picture remains murky. On February 11, Applied said it will pay $252.5 million to the U.S. Commerce Department, settling allegations linked to its customer shipments to China. The episode highlights just how fast export regulations can swing both sales and expenses. Globenewswire
