Key Takeaways
- Applied Materials (AMAT) Q2 revenue grew 18% to $7.2B, beating consensus of $6.9B.
- AI-related semiconductor equipment orders accounted for 42% of total the highest ever.
- Full-year revenue guidance raised to $29–30B (from $27–29B previously).
- The company’s gate-all-around transistor equipment is a key enabler for 2nm-class chips.
Applied Materials the largest semiconductor equipment company by revenue delivered results that affirmed the strength of the AI-driven equipment cycle. Q2 revenue of $7.2 billion beat the analyst consensus of $6.9 billion by 4%, and management raised full-year guidance for the third consecutive quarter. The company is benefiting from the unprecedented pace of fab investment as chipmakers race to build capacity for AI workloads.
Q2 Results at a Glance
| Metric | Q2 2026 | Q2 2025 | YoY |
|---|---|---|---|
| Revenue ($B) | $7.21 | $6.11 | +18.0% |
| Semiconductor Systems ($B) | $5.28 | $4.38 | +20.5% |
| Gross Margin | 48.6% | 47.2% | +140bps |
| Adjusted EPS | $2.84 | $2.31 | +22.9% |
| Backlog ($B) | $9.8 | $7.4 | +32.4% |
The Gate-All-Around Opportunity
Applied Materials’ key competitive advantage for the next generation of chips is its equipment suite for gate-all-around (GAA) transistors the architecture that replaces FinFET at the 2nm node and below. Samsung and TSMC are both adopting GAA at 2nm, and Intel’s 18A process uses a similar structure. Applied estimates the total addressable market for GAA-enabling equipment at $6–8 billion annually by 2028, up from essentially zero in 2024.