Applied Materials (AMAT) Stock: Slides 4% Despite Record $10.41B Revenue and $2.42B Shareholder Returns

TLDR

AMAT stock fell 4.68% to $363.13 despite record quarterly revenue of $10.41B.
Applied Materials returned $2.42B through dividends and stock buybacks in Q4.
Quarterly revenue surged 53% year over year as semiconductor demand expanded.
Non-GAAP quarterly earnings per share jumped 92% to $4.16 from $2.17 last year.
Applied Materials expects its Semiconductor Systems business to grow over 40%.

Applied Materials (AMAT) stock declined 4.68% to $363.13, losing $17.82 despite reporting record quarterly revenue of $10.41 billion. The shares recovered from intraday lows near $355 as selling pressure continued across the session. Meanwhile, the semiconductor equipment maker returned $2.42 billion to shareholders through dividends and stock repurchases.

Applied Materials, Inc., AMAT

Applied Materials Reports 53% Quarterly Revenue Growth
Applied Materials reported fourth-quarter revenue growth of 53% year over year, compared with $6.80 billion in fiscal 2025. The company also increased its GAAP gross margin to 50.4%, up from 48% a year earlier. Furthermore, operating income reached a record $3.66 billion, representing 35.1% of quarterly revenue.
GAAP earnings per share increased 43% to $3.40, compared with $2.38 in the previous year. Meanwhile, non-GAAP earnings per share climbed 92% to $4.16 as operating performance improved. Non-GAAP operating income reached $3.68 billion, while the adjusted operating margin rose to 35.3%.
For fiscal 2026, Applied Materials generated record revenue of $34.45 billion, marking 21% annual growth. Annual GAAP net income increased 44% to $10.09 billion, while earnings per share reached $12.62. Additionally, annual non-GAAP earnings per share rose 37% to $12.89, reflecting stronger profitability.
Applied Materials Distributes $2.42B to Shareholders
Applied Materials generated record quarterly operating cash flow of $3.30 billion during its fourth quarter. The company distributed $2.42 billion to shareholders, including $2 billion through share repurchases. Additionally, dividend payments totaled $421 million, reflecting substantial cash distributions despite the stock’s decline.
For the full fiscal year, operating cash flow reached $8.87 billion, setting another company record. Applied Materials returned $4.75 billion through dividends and stock repurchases during the year. The company also reported annual non-GAAP free cash flow of $6.20 billion, up 9%.
Meanwhile, Applied Materials continued expanding its semiconductor research partnerships through its Silicon Valley EPIC Center. Intel, KIOXIA, Besi, and UCLA joined its collaboration network, bringing announced partnerships to 15. These partnerships support advanced chipmaking, memory development, and packaging technologies for growing artificial intelligence computing demands.
AI Semiconductor Demand Supports Expansion Plans
Applied Materials expects its Semiconductor Systems business to grow more than 40% during calendar 2026. The company links this expansion to growing demand for semiconductor manufacturing equipment supporting artificial intelligence infrastructure. Furthermore, its technology portfolio covers advanced transistors, interconnects, memory, and chip packaging.
The company introduced its VeritySEM 20 system to improve semiconductor pattern measurement during advanced manufacturing. Its technology supports high-NA EUV processes and uses AI-driven methods to improve measurement efficiency. Applied Materials also announced plans to increase its ownership stake in Besi to approximately 20%.
Applied Materials continues expanding its technology investments alongside strong earnings and shareholder distributions. However, AMAT shares fell 4.68% despite record quarterly revenue and improved profitability. The decline contrasted with the company’s stronger financial results and expanding semiconductor equipment business.
 
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