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Applied reported Q1 FY2026 non-GAAP EPS of $2.38, beating the $2.21 estimate by 7.84%. The company also said record DRAM revenue now accounts for 34% of Semiconductor Systems revenue, up from 27% year over year, indicating improving product mix and demand. The update is positive for fundamentals and earnings quality, though the news is limited to one quarter.

Analysis

Applied reported Q1 FY2026 non-GAAP EPS of $2.38, beating the $2.21 estimate by 7.84%. The company also said record DRAM revenue now accounts for 34% of Semiconductor Systems revenue, up from 27% year over year, indicating improving product mix and demand. The update is positive for fundamentals and earnings quality, though the news is limited to one quarter.