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Applied Materials grows revenue and raises guidance

Applied Materials reported 25% year-over-year growth in fiscal third-quarter revenue and issued stronger fourth-quarter guidance.

By All We Need Editorial System

Applied Materials reported fiscal third-quarter revenue of $9.115 billion, up 25% year over year, with GAAP and non-GAAP earnings per share of $3.17 and $3.50. The company also issued fourth-quarter guidance and raised its full-year outlook for semiconductor systems.

Results beat the company’s baseline

Gross margin was 50.3%, indicating resilient demand for semiconductor equipment. Management had previously guided to third-quarter revenue of $8.95 billion plus or minus $500 million and non-GAAP earnings per share of $3.36 plus or minus $0.20. The reported figures were above that range’s midpoint. Kiplinger, citing Refinitiv data, said analysts had expected revenue of $9.01 billion and earnings per share of $3.39, so the quarter also came in modestly ahead of that public consensus.

The outlook extends the improvement

Applied Materials expects fourth-quarter revenue of $10.25 billion plus or minus $500 million and non-GAAP earnings per share of $4.02 plus or minus $0.20, while raising its full-year semiconductor-systems outlook. The mechanism is straightforward: sustained spending by leading-edge logic and memory customers can support revenue, margin, and cash flow together. A prior $253 million settlement over China shipments and export-control compliance remains a countercase that requires monitoring.

A stronger read on the equipment cycle

The filing moves Applied Materials from an equipment-demand story awaiting confirmation to one supported by delivered results. For semiconductor investment decisions, the key question is whether orders continue converting into revenue and whether the semiconductor-systems outlook can absorb regional restrictions. If both improve together, equipment makers may gain a firmer earnings foundation.

What to watch next

Check whether fourth-quarter revenue and non-GAAP earnings per share land within guidance; track full-year semiconductor-systems expectations, orders, and gross margin; monitor whether export licensing or China-related demand changes visibility in the next report.

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