"China remains a swing factor. The region accounted for $2.10 billion, or roughly 30% of total revenue, even after Applied paid a $253 million BIS settlement tied to export controls. Any softening commentary on license requirements or tariff retaliation would pressure the calendar 2026 setup."
Investors are awaiting Applied Materials’ fiscal Q2 2026 results after the bell, aiming to confirm the AI capex narrative. The prior quarter showed non-GAAP EPS of $2.38, above consensus, and revenue of $7.01 billion above estimates, with DRAM rising to 34% of Semiconductor Systems revenue from 27% due to HBM buildouts. The stock has surged sharply, trading around a trailing P/E near 45. Management expects HBM visibility to extend across multiple quarters, while China remains a swing factor after a BIS settlement. Global Services operating margins rose to 28.1%, supporting the valuation. CFO and a director sold shares recently.
Read at 24/7 Wall St.
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