$AMAT Delivers Record Double Beat but Shares Drop 4% After Hours
Applied Materials ($AMAT) reported strong third-quarter 2026 results, yet the stock is under pressure in after-hours trading.
Price Action
• Regular close: $534.54 (-2.48%)
• After-hours: ~$511.87 (-4.24%) Q3 FY2026 Highlights
• Revenue: $9.115 billion (record) vs. $9.00B expected → beat by 1%
• Non-GAAP EPS: $3.50 (record) vs. $3.39 expected → beat by 3%
• Revenue +25% year-over-year
• Non-GAAP EPS +41% year-over-year
• GAAP EPS $3.17
• Gross margin 50.3% (non-GAAP 50.4%)
• 13th consecutive quarter of YoY gross margin expansion
CEO Gary Dickerson highlighted “the highest sequential revenue growth in the company’s history” and said the rapid adoption of AI is driving unprecedented demand.
The company is raising its Semiconductor Systems revenue expectations for calendar 2026 and expects another strong growth year in 2027.
CFO Brice Hill noted continued strength expected in DRAM, leading-edge foundry-logic, and advanced packaging in the second half.
Despite the clean double beat, record numbers, and upbeat commentary on AI-driven demand, the stock is selling off after hours — a common reaction when elevated expectations meet even solid results in the semiconductor equipment group.
NOT FINANCIAL ADVICE. DYOR.
Is this a classic “buy the rumor, sell the news” reaction, or are investors worried about something in the outlook? Are you buying the dip or staying sidelined? Share your thoughts below
#AMAT #AppliedMaterials #Earnings #Semiconductors #AI
