Applied Materials (AMAT) Q3 FY2026 Earnings Call: Guidance and Outlook
The company provided formal guidance for the fourth fiscal quarter of 2026, reflecting continued strong year-over-year momentum. No specific annual guidance figures were provided, but management expressed confidence in a strong growth year for 2027.
About Applied Materials. Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manufacture semiconductors.
Call date
Sentiment score
+45 Positive
Management tone, -100 to +100
Sentiment change
0
vs Q2 FY2026 call
Sector
Information Technology, Semiconductors and Semiconductor Equipment
No specific annual guidance figures were provided, though management expects to grow faster than the overall market for the calendar year.
Outlook
AI Demand
AI is described as the biggest technology inflection, driving unprecedented demand for semiconductors and creating a large gap between supply and demand.
Market Growth
Leading-edge foundry logic, DRAM, and advanced packaging are expected to represent around 80% of wafer fab equipment growth in 2026 and 2027.
Advanced Packaging
Revenue in this segment is expected to grow more than 70% in calendar 2026.
Services Growth
Applied Global Services is expected to grow more than 20% in calendar 2026 and deliver a sustainable long-term annual growth rate in the mid-teens.
Process Diagnostics and Control
This business is expected to grow more than 50% in calendar 2026.
China Revenue
Revenue from China is expected to increase this calendar year, led by investments in 28-nanometer foundry logic.
Display Revenue
Other revenue is modeled at approximately $400 million per quarter on average through 2027.
Capacity Expansion
The company is hiring and training teams to support the capacity to double quarterly system output from current levels by 2028.
Dombey's summary of the Applied Materials Q3 FY2026 earnings call held Aug 13, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.
