Key Points
Fiscal 2026 revenue grew 21% year over year to $34.4 billion.
Semiconductor Systems revenue is expected to grow over 40% in calendar 2026.
Management plans to double systems output capability by 2028.
On its fourth quarter of fiscal 2026 earnings call, held on Nov. 12, 2026, Applied Materials (NASDAQ:AMAT) reported record annual revenue of $34.4 billion. The company manufactures equipment essential for producing leading-edge semiconductors. This market position gives the business long-term visibility as chipmakers expand production capacity. Three key takeaways stand out for long-term investors.
1. AI Infrastructure Demand Drives Outperformance Across Chip Equipment
Artificial intelligence computing requires advanced logic chips, dynamic random-access memory (DRAM, high-speed memory chips), and specialized packaging. Applied Materials delivers equipment across these steps, allowing top-line growth to outpace the broader wafer fab equipment market (the machinery used to make silicon chips).
Applied is outgrowing the wafer fab equipment market because we've built leadership positions in the most enabling highest value technologies for AI computing.
-- Gary Dickerson, President and Chief Executive Officer
2. Manufacturing Capacity Expansion Positions the Company to Double System Output
Semiconductor manufacturers face tight cleanroom capacity as chip demand accelerates. Applied Materials is partnering with suppliers and expanding facility plans to prepare for larger shipment volumes over the coming years.
To support our customers' growth, we're investing to be able to double our systems output from Q4 '26 levels by 2028 and more than double our manufacturing and lab capacity by 2030.
-- Brice Hill, Chief Financial Officer
3. High-Value Product Mix and Operational Efficiency Expand Profit Margins
Customer adoption of complex manufacturing tools boosts pricing power for Applied Materials. Increased automation across internal software engineering and field operations allows management to expand margins while controlling operating expenses.
Fiscal Q4 also marks our 14th consecutive quarter of year-over-year gross margin expansion, which demonstrates the customer value of our highly enabling product and services portfolio.
-- Brice Hill, Chief Financial Officer
Looking Ahead
Chip production lines remain fully utilized, and customers continue requesting earlier equipment deliveries. Management works with 2,000 component suppliers to resolve production pinch points, while structural advantages in microchip materials and process integration support multiyear growth.
In short, AI is driving a multiyear expansion in semiconductor demand, and Applied has never been better positioned to lead and outgrow the market.
-- Gary Dickerson, President and Chief Executive Officer
The Motley Fool has positions in and recommends Applied Materials. The Motley Fool has a disclosure policy.