Applied Materials Raises Outlook as Semiconductor Equipment Demand Grows -- Update

Published: 2026-05-14 16:55:17 ET AMAT

Published on 05/14/2026 at 04:55 pm EDT

By Kelly Cloonan

Applied Materials now expects stronger sales for its semiconductor equipment business this year than it previously forecast as demand for artificial intelligence computing continues to surge.

The boost to guidance came as the semiconductor-equipment maker reported higher profit and sales in its latest quarter, with both metrics beating Wall Street's expectations.

The stock rose 4.3%, to $459.42, in after-hours trading. Through market close, shares have soared 71% year to date.

Chief Executive Gary Dickerson said Applied Materials' results mark a record quarterly performance, and the company expects its growth to continue alongside the rapid global buildout of AI computing infrastructure.

For the current fiscal third quarter, the company forecast adjusted per-share earnings of $3.16 to $3.56 and revenue of $8.45 billion to $9.45 billion. Analysts forecast adjusted earnings per share of $2.89 on revenue of $8.14 billion, according to FaceSet.

Applied Materials now forecasts its semiconductor equipment business will grow more than 30% this calendar year, Dickerson said, up from its prior forecast for an increase of more than 20%.

The company is focused on making sure it has the operations and supply chain to support its customers' growth, and has increased its build plan, inventory positions and logistics capacity, Chief Financial Officer Brice Hill added.

"The growth in AI that Applied has been investing for is now in full force," Hill said.

Applied Materials's fiscal second-quarter profit came in at $2.81 billion, or $3.51 a share, up from $2.14 billion, or $2.63 a share, a year earlier.

Adjusted earnings per share were $2.86, compared with estimates of $2.68 a share according to analysts polled by FactSet.

Revenue climbed 11% year over year to $7.91 billion, compared with analyst estimates of $7.68 billion.

Write to Kelly Cloonan at [email protected]

(END) Dow Jones Newswires

05-14-26 1654ET