Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) shares rose about 4% in after-hours trading on Thursday after the semiconductor equipment maker reported stronger-than-expected fiscal second quarter results and issued upbeat guidance, supported by continued demand tied to artificial intelligence investments.
The company posted record revenue of $7.91 billion for the quarter ended April 26, up 11% from a year earlier and above analyst expectations of $7.69 billion.
Adjusted earnings came in at $2.86 per share, topping consensus estimates of $2.68 per share.
On a GAAP basis, Applied Materials reported gross margin of 49.9%, operating income of $2.52 billion, and record earnings per share of $3.51. Non-GAAP gross margin was 50.0%, while non-GAAP operating income reached $2.54 billion.
During the quarter, Applied Materials expanded several AI-related partnerships through its EPIC Center, including collaborations with TSMC, SK hynix and Micron Technology focused on next-generation semiconductor and memory technologies. The company also introduced new chipmaking systems for advanced AI chips and agreed to acquire ASMPT Limited’s NEXX business to strengthen its advanced packaging portfolio.
The company said it generated $845 million in operating cash flow during the quarter and returned $765 million to shareholders through dividends and share repurchases.
Applied Materials also forecast fiscal third quarter revenue of about $8.95 billion, plus or minus $500 million, exceeding analysts’ expectations of roughly $8.09 billion.
The company projected adjusted earnings per share of $3.36, plus or minus $0.20.
“Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026,” Applied Materials CEO Gary Dickerson said in a statement.
“The rapid global build-out of AI computing infrastructure combined with Applied’s strong leadership positions in leading-edge logic, DRAM and advanced packaging provide an exceptionally strong foundation for sustained, multi-year revenue and profit growth.”