Applied Materials

Q3 FY2026 EarningsQ3 FY26 results presented a divergence between core operations and bottom-line figures: revenue of $9.12B beat consensus by 1.23%, and gross margin reached 50.3%, exceeding expectations of 50.1%. While Semiconductor Systems revenue grew 27% YoY driven by AI and DRAM transitions, Diluted EPS of $3.17 missed the $3.38 consensus. This shortfall was primarily driven by a $100M non-operating loss from unrealized equity investment declines and a higher-than-expected effective tax rate of 12.7% vs. the 11.0% estimate.