# Applied Materials Stock Q3 2026: Revenue Up 25% on DRAM and AI as the Shares Fall 48% From Their Peak
> Applied Materials stock Q3 2026: revenue up 25% to $9.1bn, DRAM at 26% of systems sales, China down to 28% and a $10.25bn Q4 guide. AMAT valuation.

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## Facts
- Ticker: AMAT
- QSILabs fair value: $171.63 USD
- Price: $374.53 (as of 2026-11-02)
- As of: Fiscal Q3 2026 results (quarter ended 2026-07-26, reported 2026-08-13) and fiscal Q3 2026 10-Q (filed 2026-08-20); price as of 2026-11-02 close
- Fiscal period: Fiscal Q3 2026 (27 Apr to 26 Jul 2026; fiscal year ends on the last Sunday of October)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/applied-materials-stock-q3-2026-earnings-dram-china/

## Short answer
Applied Materials stock Q3 2026 comes down to a very strong quarter set against a very high expectation. In its fiscal third quarter, the three months to 26 July 2026, Applied's revenue rose 25% to $9,115m, GAAP operating income rose 38% to $3,075m and diluted earnings per share rose 43% to $3.17. DRAM chipmakers drove the growth: DRAM rose to 26% of Semiconductor Systems revenue from 22%, while China fell to 28% of total revenue from 35%. Applied guided fiscal Q4 revenue to $10.25bn. The shares have still fallen 48%, from a $723.00 close on 30 June to $374.53 on 2 November 2026, including a 25% drop since an investor event on 13 October. Our discounted cash flow model values Applied Materials at $171.63 a share, so even after the fall we see the shares as expensive: the price assumes margins and growth well above Applied's own history.

## Key takeaways
- Revenue up 25%. Fiscal Q3 2026 revenue was $9,115m, up from $7,302m a year earlier and 15% above the $7,910m of fiscal Q2. Chief executive Gary Dickerson called it "the highest sequential revenue growth in the company's history" (8-K Ex 99.1).
- Profit grew faster. GAAP gross margin rose to 50.3% from 48.8%, operating margin to 33.7% from 30.6%, and net income rose 43% to $2,538m. Non-GAAP EPS was $3.50, up 41% (8-K Ex 99.1).
- DRAM is the growth engine. DRAM made up 26% of the $7,040m of Semiconductor Systems revenue, about $1.8bn and roughly 50% more than a year earlier. Foundry and logic were 67% (8-K Ex 99.1).
- Less China. Revenue from customers in China was $2,506m, 28% of the total against 35% a year earlier. US revenue doubled to $1,367m (Form 10-Q).
- The guide. Applied expects fiscal Q4 revenue of $10.25bn, plus or minus $0.5bn, and non-GAAP EPS of $4.02, plus or minus $0.20. That implies fiscal 2026 revenue of about $34.3bn, up 21% (8-K Ex 99.1).
- Our value: $171.63 a share, 54% below the $374.53 close on 2 November 2026. The average of 41 analyst targets is $627.54 (StockAnalysis, S&P Global data).
- What to watch. Fiscal Q4 and full-year 2026 results on 12 November 2026, the first outlook for fiscal 2027, and when the Besi share purchase closes.

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