Semiconductor equipment maker Applied Materials, Inc. (NASDAQ: AMAT) has reported a modest decline in revenues for the first quarter of fiscal 2026. Q1 earnings, excluding one-off items, remained unchanged year-over-year. Both revenue and the bottom line exceeded analysts’ estimates.
Adjusted earnings were $2.38 per share in the January quarter, which is unchanged from the prior-year quarter and above analysts’ consensus estimates. Meanwhile, reported net income increased sharply to $2.03 billion or $2.54 per share in the first quarter from $1.19 billion or $1.45 per share in the comparable quarter of FY25.
First-quarter revenue declined 2% to $7.01 billion from $7.17 billion in the corresponding quarter last year, but came in above Wall Street’s expectations. During the quarter, the company generated $1.69 billion in cash from operations and distributed $702 million to shareholders through $337 million in share repurchases and $365 million in dividends.
“With demand increasing for our innovative products and services, we are focused on ensuring we have the capacity to support our customers. Over the past several years, we have nearly doubled our system manufacturing capability, strengthened our supply chain, and increased our inventories in preparation for market growth,” said Brice Hill, the company’s CFO.
For the second quarter of fiscal 2026, Applied Materials’ leadership forecasts revenues of $7.65 billion, plus or minus $500 million. Adjusted earnings per share are expected to be $2.64 in Q2, plus or minus $0.20.