Slide 1: Third Quarter Fiscal 2026 Earnings Presentation
Third Quarter Fiscal 2026 Earnings Presentation August 13, 2026 Applied Materials External
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, ou
Slide 3: Calendar Announcements
Calendar Announcements OCTOBER 12 EPIC Center Unveiling Sunnyvale, CA OCTOBER 13 Investor Breakfast Presentation San Francisco, CA | Webcast NOVEMBER 12 [PROJECTED] Q4 2026 Earnings Call Webcast 3 | Applied Materials External
Slide 4: Gary Dickerson, President and Chief Executive Officer
Gary Dickerson President and Chief Executive Officer Applied Materials External
Slide 5: CEO Perspective
▪ Environment: Rapid global AI infrastructure build-out, and CEO Applied’s technology leadership, provide strong foundation for multi-year revenue and profit growth PERSPECTIVE ▪ FQ3: Record-breaking quarter, including highest QoQ revenue growth in company history ▪ CY26: Further increased Semi Syst
Slide 6: AI is Becoming Fundamental to Competitiveness
AI is Becoming Fundamental to Competitiveness CASE STUDY: How Applied is using AI to grow faster and operate more productively ▪ Using AI to create new, highly differentiated products ▪ Significantly accelerating product development timelines ▪ Creating valuable new service solutions for customers R
Slide 7: Global Competition for AI Leadership: Two Concurrent Races
Global Competition for AI Leadership: Two Concurrent Races RACE 1: RACE 2: TECHNOLOGY LEADERSHIP CAPACITY ▪ AI datacenter returns determined ▪ Demand for advanced by tokens generated per second semiconductors to support AI and energy consumption infrastructure far exceeds supply ▪ Improvements in to
Slide 8: How Applied Enables the Technology Race
How Applied Enables the Technology Race LEADING-EDGE FOUNDRY/LOGIC DRAM ADVANCED PACKAGING ▪ Strong leadership position in ▪ Strong leadership position ▪ Market leader with strong leading-edge foundry-logic across the DRAM roadmap positions in HBM and 3D tHESE chiplet stacking ▪ Introduced Centris S
Slide 9: How Applied Enables the Capacity Race
How Applied Enables the Capacity Race PROCESS DIAGNOSTICS ADVANCED SERVICES OUTPUT INNOVATION PRODUCTS AND CONTROL ▪ >37,000 chambers connected ▪ Advanced logic and DRAM ▪ Developing new portfolio of to AIx software require more eBeam steps; output innovation products to ▪ Helping customers optimize
Slide 10: EPIC Center R&D Partnerships Expanding
E P I C C E N T E R R & D PA R T N E R S H I P S E X PA N D I N G FOUNDING PARTNERS INNOVATION PARTNERS RESEARCH PARTNERS Micron Samsung Advantest Broadcom ASU RPI SK hynix TSMC SCREEN Stanford UC Berkeley 11 Announced EPIC Engagements | EPIC Center to Begin Operations in the Fall 10 | Applied Mater
Slide 11: CEO Summary
CEO ▪ Market environment » Demand for advanced semiconductors and equipment continues to strengthen » Raising Semi Systems revenue outlook for CY26; expect to grow SUMMARY faster than the market » On track for strong revenue growth and margin expansion in 2027 and beyond ▪ Race for AI technology lea
Slide 12: Brice Hill, SVP, Chief Financial Officer
Brice Hill SVP, Chief Financial Officer Applied Materials External
Slide 13: Demand Strengthening, Scaling for Growth
▪ Cloud service providers generating positive returns from growing AI infrastructure investments ▪ Semiconductor fab utilization levels rising across leading-edge F/L, Demand memory and ICAPS Strengthening ▪ Customers announced more than 10 new fab projects in the quarter ▪ ICAPS experiencing strong
Slide 14: Value Creation and Sharing
▪ Applied is investing to deliver value in more ways than ever before » Increased R&D every year since 2012 » Better chips: broadening from equipment innovations to materials engineering solutions » Better systems: significantly increased advanced packaging R&D, reinforced by two recent acquisitions
Slide 15: FQ3'26 Non-GAAP Financial Results
FQ3’26 Non-GAAP Financial Results $M, except EPS FQ3’25 FQ2’26 FQ3’26 YoY QoQ Year-over-year highlights: ▪ Record revenue, up 25% YoY Revenue 7,302 7,910 9,115 25% 15% ▪ Gross margins up 150bps YoY » 13th consecutive quarter of YoY Gross Margin* 48.9% 50.0% 50.4% 150bps 40bps expansion » Value-based
Slide 16: FQ3'26 Segment Results
FQ3’26 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES Non-GAAP Operating Margin* Non-GAAP Operating Margin* 38% 35% 7,040 33% 33% 30% 29% 30% 29% 28% 5,965 27% 5,564 5,141 4,879 1,781 1,665 1,559 1,506 1,463 Revenue ($M) Revenue ($M) Q3F25 Q4F25 Q1F26 Q2F26 Q3F26 Q3F25 Q4F25 Q1F26 Q2F
Slide 17: Cash Flows and Shareholder Distributions
Cash Flows and Shareholder Distributions CASH FLOWS ($M) FQ3'25 FQ4'25 FQ1’26 FQ2’26 FQ3’26 Operating Cash Flow 2,634 2,828 1,686 845 3,037 Free Cash Flow* 2,050 2,043 1,040 210 2,330 SHAREHOLDER DISTRIBUTIONS ($M) Total Shareholder Distributions (1,424) (1,216) (702) (765) (860) Share Repurchases (
Slide 18: Business Outlook
Business Outlook Total Revenue ~$10.250B ± $500M Fourth OUTLOOK* Non-GAAP EPS* ~$4.02 ± $0.20 QUARTER FISCAL 2026 Semiconductor Systems (includes 200mm equipment) ~$7.900B REVENUE Applied Global Services ~$1.840B (excludes 200mm equipment) Other ~$510M Non-GAAP Gross Margin* ~50.4% OTHER Non-GAAP Op
Slide 19: CFO Summary
▪ Rapid adoption of AI we’ve been investing for is driving strong growth and record revenue and profitability ▪ Applied is enabling better chips, systems and fab returns – and increasing pricing and gross margins CFO SUMMARY ▪ Record performance continuing in 2H CY26, with sizeable increase in DRAM
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Slide 21: Segment Financial Table
Segment Financial Table RECAST PREVIOUSLY REPORTED In Millions, Except Percentages FY24 Q1F25 Q2F25 Q3F25 Q4F25 In Millions, Except Percentages FY24 Q1F25 Q2F25 Q3F25 Q4F25 SEMICONDUCTOR SYSTEMS SEMICONDUCTOR SYSTEMS Revenue $ 21,014 $ 5,597 $ 5,401 $ 5,564 $ 4,879 Revenue $ 19,911 $ 5,356 $ 5,255 $
Slide 22: Capital Allocation Strategy
Capital Allocation Strategy 1. Invest in R&D and infrastructure OVER PAST 10 FISCAL YEARS (through FY25) to enable profitable growth » Reinvested nearly $25B in R&D and >$8B in capital additions » Distributed nearly 90% of FCF* 2. Grow dividend per share and use » Grew dividend per share at 16% CAGR
Slide 23: Strong Investment-Grade Balance Sheet
Strong Investment-Grade Balance Sheet CASH AND INVESTMENTS ($M) FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 Cash and Cash Equivalents 5,384 7,241 7,218 6,301 7,037 Short-Term Investments 1,630 1,332 1,293 1,940 2,196 Long-Term Investments 4,133 4,327 4,968 5,142 5,268 Total Cash and Investments 11,147 12,900
Slide 24: Latest 3rd Party ESG Ratings
LATEST 3rd PARTY ESG RATINGS CDP Climate B CDP Water A- MSCI AAA Sustainalytics Risk Rating Low ISS (E/S/G) 1/3/1 Link: 2025 Impact Report 24 | Applied Materials External
Slide 25: Additional Resources
Additional Resources Investor Relations Home Page LINK Newsroom LINK 2026: DRAM and Advanced Packaging Master Class LINK 2026: Logic Master Class LINK 2026: SPIE Advanced Lithography + Patterning Conference LINK 2025: SEMICON West Technology Breakfast LINK 25 | Applied Materials External
Slide 26: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 26 | Applied Materials External
Slide 27: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including, as applicable, certain items related to mergers and acquisitions; restructuring and severance charges and
Slide 28: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 Non-GAAP Gross Profit FOOTNOTES: GAAP reported gross profit $ 3,562 $ 3,265 $ 3,435 $ 3,947 $ 4,586 1. These items are incremental charges attributable to completed Certa
Slide 29: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 2.22 $ 2.38 $ 2.54 $ 3.51 $ 3.17 Certain items associated with acquisitions 0.01 0.01
Slide 30: Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 Semiconductor Systems Non-GAAP Gross Profit GAAP reported gross profit $ 2,970 $ 2,569 $ 2,794 $ 3,264 $ 3,892 Certain items associated with acquisition
Slide 31: Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 GAAP reported Operating Expenses $ 1,329 $ 1,553 $ 1,604 $ 1,424 $ 1,511 Certain items associated with acquisitions1 (4) (4) (4) (4) (5) Acquisition integration and deal costs (1)
Slide 32: Unaudited Quarterly Reconciliation of Non-GAAP Free Cash Flow
UNAUDITED QUARTERLY RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,634 $ 2,828 $ 1,686 $ 845 $ 3,037 Capital expenditures (584) (785) (646) (635) (707) Non-GAAP free cash flow $ 2,050 $ 2,04
Slide 33: Unaudited Full Year Reconciliation of Non-GAAP Free Cash Flow
UNAUDITED FULL YEAR RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FY2016 FY2017 FY2018 FY2019 FY2020 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,566 $ 3,789 $ 3,787 $ 3,247 $ 3,804 Capital expenditures (253) (345) (622) (441) (422) Non-GAAP free cash flow $ 2,313 $ 3,
Slide 34: Reconciliation Information for Business Outlook
RECONCILIATION INFORMATION FOR BUSINESS OUTLOOK Non-GAAP outlook for the fourth quarter of fiscal 2026 (including non-GAAP gross margin, operating margin, operating expenses and EPS) excludes known charges related to completed acquisitions of ~$12 million, includes the normalized tax benefit of shar
Slide 35: | Applied Materials External
| Applied Materials External