Applied Materials forecast tops estimates but stock falls

Aug 13, 2026

Applied Materials Inc. forecast fourth-quarter revenue of $10.25 billion to $10.3 billion, beating Wall Street estimates due to robust AI-driven demand. Despite the strong outlook and raising its 2026 packaging revenue growth projection to over 70%, the company's shares fell over 5% in after-hours trading on August 13, 2026, as investors maintained exceptionally high expectations for the chip equipment maker.

Applied Materials Q4 revenue forecast

▪Applied Materials Inc. expects fourth-quarter adjusted profit per share of $4.02, plus or minus 20 cents, compared with analysts' average estimate of $3.69.
▪Applied Materials Inc. forecast fourth-quarter revenue of approximately $10.25 billion to $10.3 billion, exceeding analysts' average estimates of $9.54 billion to $9.62 billion.

AI chip equipment demand

▪Applied Materials Inc. is experiencing increased demand for its semiconductor manufacturing equipment due to chipmakers expanding artificial intelligence infrastructure.
▪Applied Materials Inc. Chief Financial Officer Brice Hill stated that the company expects strong revenue growth in the second half of the calendar year, particularly in DRAM, leading-edge foundry-logic, and advanced packaging.

Stock decline despite earnings beat

▪Applied Materials Inc. shares fell more than 5% in extended trading on August 13, 2026, as high investor expectations overshadowed the company's estimate-beating forecast.
▪The stock of Applied Materials Inc. had more than doubled in value during 2026 prior to the August 13, 2026 earnings report.