SANTA CLARA (dpa-AFX) - Applied Materials, Inc. (AMAT) reported on Thursday a 43% increase in third-quarter profit, driven by strong demand for semiconductor manufacturing equipment fueled by artificial intelligence.
Net income rose to $2.54 billion, or $3.17 per share, from $1.78 billion, or $2.22 per share, in the prior-year quarter. On an adjusted basis, net income rose to $2.80 billion, or $3.50 per share, from $1.99 billion, or $2.48 per share, last year.
For the quarter, the company reported revenue of $9.12 billion, up 25% from $7.30 billion a year earlier. Gross margin improved to 50.3% from 48.8%.
'Applied Materials delivered another record-breaking quarter, including the highest sequential revenue growth in the company's history,' said Gary Dickerson, President and CEO. 'As the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions, we are further raising our Semiconductor Systems revenue expectations for calendar 2026 and are confident we will grow faster than the market this year. Based on the increased demand visibility we are receiving from our customers, we expect another strong growth year for Applied Materials in 2027.'
Semiconductor Systems revenue increased to $7.04 billion from $5.56 billion, while Applied Global Services revenue rose to $1.78 billion from $1.46 billion.
For the fourth quarter, Applied Materials expects revenue of $10.25 billion, plus or minus $500 million, and adjusted earnings per share of $4.02, plus or minus $0.20.
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