Slide 1: First Quarter Fiscal 2026 Earnings Presentation
First Quarter Fiscal 2026 Earnings Presentation FEBRUARY 12, 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 FEBRUARY 24 New Product Briefings at SPIE Lithography and Patterning Conference San Jose, CA APRIL 8 | 9AM PT Transistors and Wiring Master Class Webcast OCTOBER 12 Investor Open House at the New EPIC Center Silicon Valley Sunnyvale, CA OCTOBER 13 Investor Breakfast San Franci
Slide 4: Gary Dickerson, President and Chief Executive Officer
Gary Dickerson President and Chief Executive Officer Applied Materials External
Slide 5: CEO Perspective
CEO ▪ FQ1 revenue and earnings above mid-point of guided range ▪ Strong performance and outlook fueled by: » Acceleration of investments in energy-efficient AI computing PERSPECTIVE » High-value innovations that extend leadership in fastest growing semiconductor equipment market segments ▪ In AI, im
Slide 6: Accelerated AI Adoption and Market Growth
Accelerated AI Adoption and Market Growth ▪ Global semiconductor revenues could reach $1T in 2026 ▪ Applied’s semiconductor equipment business expected to grow >20% in calendar year 2026 » Demand profile weighted towards second half of calendar year » Cleanroom space a key factor pacing rate of inve
Slide 7: AI is enabling real world applications with productivity gains and ROI for users
AI is enabling real world applications with productivity gains and ROI for users AI chatbots Tokens AI coders HIGHER PERFORMANCE generated CHIPS per second AI agents AI productivity tools MORE Total Cost Of Autonomous Vehicles ENERGY-EFFICIENT Ownership CHIPS (TCOS) Robotics AI-enabled Science 7 | A
Slide 8: 2026 WFE Market Outlook
2026 WFE Market Outlook FASTEST GROWING AREAS OF THE MARKET INFLECTIONS 2026 WFE MARKET DRIVERS Leading-Edge Gate-all-around transistors FinFET capacity additions Foundry/Logic Backside power delivery GAA nodes ramping A P P L I E D M AT E R I A L S 4F2 6F2 capacity additions, incl HBM Process DRAM
Slide 9: Inflection-Focused Innovation
Engage with customers and partners to see technology inflections early INFLECTION- Focus R&D on the most critical and valuable FOCUSED challenges using high-velocity co-innovation INNOVATION Create increasingly valuable solutions by connecting our broad portfolio 9 | Applied Materials External
Slide 10: Innovative Pipeline of Next-Generation Products: Q2 Launches
Innovative Pipeline of Next-Generation Products: Q2 Launches GAA GAA GAA DRAM DRAM Viva Radical Treatment Sym3 Z Magnum Etch Spectral Molybdenum ALD Pure radical treatment smoothens Conductor etch system ALD system replaces tungsten GAA silicon nanosheets with delivers angstrom-level 3D transistor c
Slide 11: Samsung Electronics joins EPIC Center
ANNOUNCED Samsung Electronics joins EPIC Center Co-development programs to accelerate commercialization of next-generation semiconductor technologies 11 | Applied Materials External
Slide 12: Service Innovation – Accelerating Time to Market
Service Innovation – Accelerating Time to Market AI IN THE FAB ACCELERATE Results R&D ▪ >30,000 chambers Time to qualify connected to AIx x AI Process window servers using AI- powered monitoring, Ramp diagnostics and Time to match analytics Actionable Insight Yield optimization Accelerator (AIX) Pla
Slide 13: CEO Summary
CEO ▪ Semiconductors are the heart of the AI technology stack ▪ Semiconductor industry revenues potentially reach $1T in 2026 SUMMARY ▪ Inflection-focused innovation strategy is extending Applied’s leadership in leading-edge foundry/logic, memory, and advanced packaging ▪ Applied’s semiconductor equ
Slide 14: Brice Hill, SVP, Chief Financial Officer
Brice Hill SVP, Chief Financial Officer Applied Materials External
Slide 15: Demand Environment
▪ Business is strengthening, positive demand indications throughout the ecosystem » Higher levels of planned capex from cloud service providers » Semiconductor factory utilization rising across all device types DEMAND » Leading-edge foundry/logic and DRAM capacity essentially full, and prices have i
Slide 16: Preparing for Growth
Preparing for Growth ▪ Prioritizing capacity availability for our customers ▪ Over the last several years Applied nearly doubled our system manufacturing capacity and strengthened supply chain operations ▪ Giving our direct suppliers longer visibility into our requirements, allowing them to prolifer
Slide 17: FQ1'26 Non-GAAP Financial Results
FQ1’26 Non-GAAP Financial Results FQ1’25 FQ4’25 FQ1’26 YoY QoQ Year-over-year highlights: $M, except EPS ▪ Revenue in the upper end of Revenue 7,166 6,800 7,012 -2% 3% guidance range ▪ China represented 27% of Gross Margin* 48.9% 48.1% 49.1% 20bps 100bps combined semi systems and AGS revenue, and 30
Slide 18: FQ1'26 Segment Results
FQ1’26 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES Non-GAAP Operating Margin* 34% 33% 33% 33% Non-GAAP Operating Margin* 30% 29% 27% 28% 27% 5,597 5,564 25% 5,401 5,141 4,879 1,559 1,506 1,463 1,420 1,353 Revenue ($M) Revenue ($M) Q1F25 Q2F25 Q3F25 Q4F25 Q1F26 Q1F25 Q2F25 Q3F25 Q4F
Slide 19: Cash Flows and Shareholder Distributions
Cash Flows and Shareholder Distributions CASH FLOWS ($M) FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1’26 Operating Cash Flow 925 1,571 2,634 2,828 1,686 Free Cash Flow* 544 1,061 2,050 2,043 1,040 SHAREHOLDER DISTRIBUTIONS ($M) Total Shareholder Distributions (1,644) (1,995) (1,424) (1,216) (702) Share Repurchas
Slide 20: Business Outlook
Business Outlook Total Revenue ~$7.650B ± $500M Second OUTLOOK* Non-GAAP EPS* ~$2.64 ± $0.20 QUARTER FISCAL 2026 Semiconductor Systems (includes 200mm equipment) ~$5.800B REVENUE Applied Global Services ~$1.600B (excludes 200mm equipment) Other ~$250M Non-GAAP Gross Margin* ~49.3% OTHER Non-GAAP Ope
Slide 21: CFO Summary
▪ Investments made over the past several years have put Applied in a terrific position for profitable growth ▪ Global AI infrastructure expansion is translating to accelerating demand CFO for Applied’s most enabling products in leading-edge foundry/logic, DRAM and advanced packaging – along with adv
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Slide 23: 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 24: 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 >$8B in capital additions » Distributed nearly 90% of FCF* 2. Grow dividend per share and use » Grew dividend per share at 16% CAGR
Slide 25: Strong Investment-Grade Balance Sheet
Strong Investment-Grade Balance Sheet CASH AND INVESTMENTS ($M) FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 Cash and Cash Equivalents 6,264 6,169 5,384 7,241 7,218 Short-Term Investments 1,949 578 1,630 1,332 1,293 Long-Term Investments 2,686 3,638 4,133 4,327 4,968 Total Cash and Investments 10,899 10,385 1
Slide 26: 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) 2/2/1 Link: 2024 Impact Report 26 | Applied Materials External
Slide 27: Additional Resources
Additional Resources Investor Relations Home Page LINK Newsroom LINK 2025 SEMICON West Technology Breakfast LINK 2025: Applied Materials Panel Discussion during SPIE Conference LINK 2024: SEMICON West Technology Breakfast LINK 2024: 2023 WFE Market Summary LINK 2024: Applied Materials Panel Discussi
Slide 28: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 28 | Applied Materials External
Slide 29: Use of Non-GAAP Adjusted Financial Measures
Use of Non-GAAP Adjusted 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 ch
Slide 30: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 Non-GAAP Gross Profit FOOTNOTES: GAAP reported gross profit $ 3,496 $ 3,485 $ 3,562 $ 3,265 $ 3,435 1. These items are incremental Certain items associated with
Slide 31: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 1.45 $ 2.63 $ 2.22 $ 2.38 $ 2.54 Certain items associated with acquisitions
Slide 32: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 Semiconductor Systems Non-GAAP Gross Profit GAAP reported gross profit $ 2,986 $ 2,889 $ 2,970 $ 2,569 $ 2,794 Certain items associated with acquisition
Slide 33: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 GAAP reported Operating Expenses $ 1,321 $ 1,316 $ 1,329 $ 1,553 $ 1,604 Certain items associated with acquisitions1 (5) (5) (4) (4) (4) Acquisition integration and deal costs (3)
Slide 34: Unaudited Quarterly Reconciliation of Non-GAAP Free Cash Flow
UNAUDITED QUARTERLY RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 925 $ 1,571 $ 2,634 $ 2,828 $ 1,686 Capital expenditures (381) (510) (584) (785) (646) Non-GAAP free cash flow $ 544 $ 1,061
Slide 35: 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 36: Reconciliation Information for Business Outlook
RECONCILIATION INFORMATION FOR BUSINESS OUTLOOK Non-GAAP outlook for the second quarter of fiscal 2026 (including non-GAAP gross margin, operating margin, operating expenses and EPS) excludes known charges related to completed acquisitions of ~$11 million and includes a net income tax benefit relate
Slide 37: Applied Materials – Material Innovation
APPLIED MATERIALS.. Material Innovation