Applied Materials, Inc. (AMAT), the semiconductor equipment maker, reported record fourth-quarter revenue of $10.41 billion for the period ended Oct. 25, 2026, up 53% from a year earlier, after 25% year-over-year growth in the third quarter and 11% in the second.

The acceleration marked the third consecutive quarter of record sales and a sharp step-up from the mid-year pace. GAAP earnings were $3.40 a share, up 43% from a year earlier. Non-GAAP diluted EPS reached a record $4.16, up 92% from a year earlier, after a 41% year-over-year increase to $3.50 in the third quarter.

GAAP gross margin was 50.4%, up 240 basis points from a year earlier. Non-GAAP gross margin was 50.6%, up 250 basis points. GAAP operating margin widened to 35.1% of revenue, up 9.9 points from a year earlier, and non-GAAP operating margin was 35.3%.

Semiconductor Systems, which absorbed the 200-millimeter equipment business from Applied Global Services in the first quarter of fiscal 2026, generated $7.996 billion of revenue, up 64% from a year earlier. DRAM accounted for 33% of segment revenue, versus 28% a year earlier. Foundry and logic were 58% of the mix, versus 66%. Segment GAAP operating margin was 38.8% and non-GAAP operating margin 39.0%.

Applied Global Services revenue was $1.896 billion, up 26% from a year earlier, with GAAP gross margin of 35.1% and operating margin of 30.5%. Other reported revenue was $517 million.

President and CEO Gary Dickerson said Applied is on track to grow Semiconductor Systems more than 40% in calendar 2026, after the third-quarter comment that the company was further raising calendar-2026 Semiconductor Systems revenue expectations. He said AI continues to fuel incremental demand and that the company has built a portfolio to advance the AI-computing roadmap.

The company generated record cash from operations of $3.30 billion in the quarter and record free cash flow of $2.62 billion, up 28% from a year earlier. It distributed $2.42 billion to shareholders through $2.00 billion in share repurchases and $421 million in dividends, which Chief Financial Officer Brice Hill described as the largest quarterly share buyback in more than eight years.

China was 25% of fourth-quarter revenue, or $2.642 billion, versus 29% a year earlier. Taiwan was 28%, or $2.916 billion. Korea was 17%, or $1.811 billion.

For the full fiscal year ended Oct. 25, 2026, Applied generated record revenue of $34.45 billion, up 21% from a year earlier. GAAP gross margin was 50.0% and non-GAAP gross margin 50.1%, both up 130 basis points. GAAP EPS was a record $12.62, up 46%, and non-GAAP EPS was a record $12.89, up 37%. Full-year cash from operations was a record $8.87 billion.

Applied unveiled the EPIC Center in Silicon Valley and added four R&D partnerships — Intel as a founding partner, KIOXIA, Besi and UCLA — bringing announced EPIC engagements to 15, up from 11 in the third quarter. It also entered an accelerated share purchase agreement to increase its investment in Besi to approximately 20% of outstanding shares, adding to an initial investment made in April 2025.

Total revenue and non-GAAP diluted EPS for the first quarter of fiscal 2027 are expected to be $11.10 billion plus or minus $500 million and $4.35 plus or minus $0.20 a share, respectively. The non-GAAP EPS outlook excludes known charges related to completed acquisitions of $0.01 a share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 a share.