Traction in WFE and Display Products to Drive AMAT's Q1 Earnings

Core Insights - Applied Materials (AMAT) is expected to report its first-quarter fiscal 2026 results on February 12, with a strong focus on its semiconductor systems business driven by the AI market [1][10] Semiconductor Systems Segment - The semiconductor systems business, AMAT's largest revenue contributor, grew by 4.5% in fiscal 2025, with notable strength in flash memory, DRAM, and logic [3] - NAND sales nearly doubled to $1.41 billion in fiscal 2025 from $747.4 million in the previous year [3] - In Q4 of fiscal 2025, DRAM revenues increased by nearly 16% year over year, contributing to expected revenue growth in the upcoming quarter [4] Display Business - AMAT's display business rebounded in fiscal 2025, achieving a year-over-year growth of 19.8%, with Q4 revenues surging by 68.2% due to a richer mix of advanced systems and increased pricing [5][10] - The gross margin for the display business reached 48.8%, the highest in 25 years, growing by 120 basis points year over year [6] Applied Global Services - The Applied Global Services segment is anticipated to have experienced steady growth, supported by strong demand for comprehensive service agreements and the expansion of its subscription-based business [7]