Q1 2026 Applied Materials Inc Earnings Call Transcript
Key Points
- Applied Materials Inc (AMAT) delivered revenue and earnings above the midpoint of their guided range for the first fiscal quarter of 2026.
- The company expects to grow its semiconductor equipment business by more than 20% this calendar year, driven by AI infrastructure investments.
- Applied Materials Inc (AMAT) holds strong leadership positions in leading-edge logic, high bandwidth memory DRAM, and advanced packaging.
- The company is launching more than a dozen new products in 2026, including innovations in advanced logic and DRAM.
- Applied Materials Inc (AMAT) has significantly increased its system manufacturing capacity and strengthened its supply chain operations to meet growing demand.
- Revenue in China declined 7% year-over-year, representing 27% of combined semi equipment and AGS sales.
- Non-GAAP operating profit declined 4% year-over-year to $2.1 billion.
- The company accrued $252.5 million related to an export controls compliance matter.
- NAND equipment demand is expected to remain modest, with NAND spending less than 10% of wafer fab equipment spending.
- The company faces headwinds in gross margin due to a mix shift towards smaller customers and flattish ICAP spending.
Welcome to the Applied Materials First Quarter of Fiscal 2026 Earnings Call. (Operator Instructions) I would now like to turn the call over to Mike Sullivan, Corporate Vice President of Investor Relations. Please go ahead.
Good afternoon, everyone, and thank you for joining today's call. With me are Gary Dickerson, our President and CEO; and Brice Hill, our Chief Financial Officer. Before we begin, I'd like to remind you that today's call includes forward-looking statements, which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning these risks and uncertainties is discussed in our most recent Form 10-K and other filings with the SEC.
Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures can be found in today's earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com. Before we begin, I have several calendar
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