Applied Materials Q1 revenue falls 2% to $7.01 billion; GAAP EPS rises to $2.54
Applied Materials reported first-quarter fiscal 2026 revenue of $7.01 billion, down 2 percent year over year, with non-GAAP EPS flat at $2.38 and GAAP EPS up 75 percent to $2.54. GAAP results included a $484 million unrealized gain on strategic investments and a $253 million legal settlement charge tied to an export controls compliance matter. For shareholders, lower sales and flat adjusted earnings sit alongside higher GAAP earnings, and the company guided second-quarter revenue to $7.65 billion plus or minus $500 million.
Key points
- Revenue was $7.01 billion, down 2 percent year over year; GAAP gross margin was 49.0 percent and non-GAAP gross margin was 49.1 percent.
- GAAP diluted EPS was $2.54, up from $1.45; non-GAAP diluted EPS was $2.38, unchanged from the prior year.
- The quarter included a $253 million charge for a settlement with the U.S. Commerce Department Bureau of Industry and Security over an export controls compliance matter.
- Second-quarter fiscal 2026 outlook: total revenue of $7.65 billion plus or minus $500 million and non-GAAP diluted EPS of $2.64 plus or minus $0.20.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 2:16 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on February 12, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.