Applied Materials (AMAT): FQ426 recap - An ocean of calm amid industry tempests

Applied Materials (AMAT): FQ426 recap - An ocean of calm amid industry tempests. AMAT's FQ4 results were good ($10,409M/$4.16 vs Street $10,269M/$4.06), driven by strong Equipment sales (with DRAM and NAND above), with Services revenues and Other (which now includes Display) also above consensus. Gross margin of ~50.6% beat as well (Street at 50.4%). FQ1 guidance was also very strong ($11,100M/$4.35 vs Street at $10,869M/$4.26), well above on equipment, and slightly above on services and Other. Management took up their CY26 equipment sales expectations again to >40%; they also see CY27 WFE growth exceeding 30% (roughly in line with peers) and expect to outgrow the market again given continued strength in leading edge foundry/logic, DRAM, and advanced packaging (now also assisted by a return to ICAPS growth as well). Gross margins were guided to ~50.8%, up ~20bps QoQ and further operating margin expansion to ~35.5% up ~20bps QoQ. Amid the tempest occurring across the broader space recen