Applied Materials Reports Fiscal Q2 2026 Results: Revenue Rises 11% Year-Over-Year to $7.91 Billion
Applied Materials' 10-Q for the quarter ended April 26, 2026 discloses accelerating revenue growth, expanded segment margins, a $253 million BIS export-controls settlement, and ongoing capital expenditure investment amid elevated trade-policy uncertainty.
Sourced from the primary SEC filing. 10-Q filed May 21, 2026 · SEC EDGAR ↗
Summary
Applied Materials, Inc. filed its Form 10-Q for the fiscal second quarter ended April 26, 2026, reporting net revenue of $7.91 billion, an 11% increase from the year-ago quarter, with net income rising to $2.81 billion. The filing also discloses a $253 million settlement with the U.S. Commerce Department's Bureau of Industry and Security related to export controls compliance, recorded as a one-time charge in the first half of fiscal 2026. Management continues to flag material risks tied to evolving U.S. export restrictions on China-bound shipments and broader trade-policy uncertainty as factors that could affect future results.
Key metrics
Quarterly revenue for the three months ended April 26, 2026, compared to $7,100m in the prior-year period.
Revenue for the six months ended April 26, 2026, compared to $14,266m in the prior-year period.
Revenue from the Semiconductor Systems segment for the three months ended April 26, 2026.
Revenue from the Semiconductor Systems segment for the six months ended April 26, 2026.
Revenue from the AGS segment for the three months ended April 26, 2026.
Revenue from the AGS segment for the six months ended April 26, 2026.
Gross profit for the three months ended April 26, 2026.
Gross profit for the six months ended April 26, 2026.
Company-wide gross margin for the three months ended April 26, 2026, up from 49.1% in the prior-year period.
Company-wide gross margin for the six months ended April 26, 2026, up from 48.9% in the prior-year period.
Segment gross margin for Semiconductor Systems for the three months ended April 26, 2026, compared to 53.5% in the prior-year period.
Segment gross margin for Semiconductor Systems for the six months ended April 26, 2026, compared to 53.4% in the prior-year period.
Segment gross margin for Applied Global Services for the three months ended April 26, 2026, compared to 33.5% in the prior-year period.
Segment gross margin for Applied Global Services for the six months ended April 26, 2026, compared to 32.9% in the prior-year period.
Income from operations for the three months ended April 26, 2026, compared to $2,169m in the prior-year period.
Income from operations for the six months ended April 26, 2026, compared to $4,344m in the prior-year period.
Company-wide operating margin for the three months ended April 26, 2026.
Company-wide operating margin for the six months ended April 26, 2026; impacted by $253m legal settlement and $12m restructuring charges.
Segment operating income for Semiconductor Systems for the three months ended April 26, 2026.
Segment operating margin for Semiconductor Systems for the three months ended April 26, 2026, compared to 32.8% in the prior-year period.
Segment operating margin for Semiconductor Systems for the six months ended April 26, 2026, compared to 33.1% in the prior-year period.
Segment operating income for Applied Global Services for the three months ended April 26, 2026.
Segment operating margin for AGS for the three months ended April 26, 2026, compared to 26.6% in the prior-year period.
Segment operating margin for AGS for the six months ended April 26, 2026, compared to 25.7% in the prior-year period.
Net income for the three months ended April 26, 2026, compared to $2,137m in the prior-year period.
Net income for the six months ended April 26, 2026, compared to $3,322m in the prior-year period.
Diluted earnings per share for the three months ended April 26, 2026, compared to $2.63 in the prior-year period.
Diluted earnings per share for the six months ended April 26, 2026, compared to $4.08 in the prior-year period.
Basic earnings per share for the three months ended April 26, 2026.
Basic earnings per share for the six months ended April 26, 2026.
RD&E expenses for the three months ended April 26, 2026, compared to $893m in the prior-year period.
RD&E expenses for the six months ended April 26, 2026, compared to $1,752m in the prior-year period.
Effective tax rate for the three months ended April 26, 2026, compared to 8.0% in the prior-year period.
Effective tax rate for the six months ended April 26, 2026, compared to 25.2% in the prior-year period; lower year-over-year primarily due to new tax incentive agreements in Singapore.
Balance sheet cash and cash equivalents as of April 26, 2026, compared to $7,241m as of October 26, 2025.
Total assets as of April 26, 2026, compared to $36,299m as of October 26, 2025.
Total inventories as of April 26, 2026, compared to $5,915m as of October 26, 2025.
Net accounts receivable as of April 26, 2026, compared to $5,185m as of October 26, 2025.
Long-term debt carrying value as of April 26, 2026. Principal amount of senior unsecured notes was $5.3 billion; $1.2 billion of 3.300% Senior Notes Due 2027 reclassified to current.
Operating cash flow for the six months ended April 26, 2026, compared to $2,496m in the prior-year period.
Capital expenditures for the six months ended April 26, 2026, compared to $891m in the prior-year period.
Cost of common stock repurchased during the three months ended April 26, 2026, including excise tax; 1 million shares repurchased at an average price of $352.63.
Cost of common stock repurchased during the six months ended April 26, 2026, including excise tax; 2 million shares repurchased at an average price of $302.69.
Quarterly cash dividend declared in March 2026, payable in June 2026.
Total dividends declared per share for the six months ended April 26, 2026 ($0.46 in Q1 and $0.53 in Q2).
Total share-based compensation expense for the three months ended April 26, 2026, compared to $159m in the prior-year period.
Total share-based compensation expense for the six months ended April 26, 2026, compared to $354m in the prior-year period.
Primarily driven by higher net unrealized gain on equity investments; compared to $221m in the prior-year period.
Compared to $229m in the prior-year period; primarily driven by higher net unrealized gain on equity investments.
Revenue from China for the three months ended April 26, 2026, representing 27% of total revenue.
Revenue from China for the six months ended April 26, 2026, representing 28% of total revenue.
Revenue from Taiwan for the three months ended April 26, 2026, representing 27% of total revenue.
Revenue from Korea for the three months ended April 26, 2026, representing 20% of total revenue.
Foundry and logic represented 67% of Semiconductor Systems revenue in Q2 FY2026, compared to 66% in the prior-year period.
DRAM represented 29% of Semiconductor Systems revenue in Q2 FY2026, compared to 27% in the prior-year period.
NAND flash represented 4% of Semiconductor Systems revenue in Q2 FY2026, compared to 7% in the prior-year period.
One-time charge recorded in H1 FY2026 related to settlement with the U.S. Commerce Department Bureau of Industry and Security (BIS) over export controls compliance; paid in full during Q2 FY2026.
Charges recognized in H1 FY2026 under the Fiscal 2025 Restructuring Plan, consisting primarily of severance and employment termination benefits.
Remaining capacity under the company's Board-authorized stock repurchase program as of April 26, 2026.
Total unrecognized compensation expense net of estimated forfeitures, to be recognized over a weighted average period of 2.8 years.
Common shares outstanding as of April 26, 2026.
Unsatisfied performance obligations related to advance payments and billings in excess of revenue recognized; compared to $2,566m as of October 26, 2025.
Approximately 77% expected to be recognized within 12 months; remainder within the following 24 months.
Total depreciation and amortization for the six months ended April 26, 2026, compared to $208m in the prior-year period.
Estimated fair value of total short-term and long-term investments as of April 26, 2026, including equity and fixed income securities.
Fair value of publicly traded equity securities as of April 26, 2026; cost basis was $965m with gross unrealized gains of $1,284m.
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