Core Insights - Applied Materials reported strong first-quarter results, driven by increased industry investments in AI computing and semiconductor technologies [4][7][9] Financial Performance - Revenue for Q1 FY2026 was $7.01 billion, a decrease of 2% compared to Q1 FY2025's $7.17 billion [5][7] - GAAP gross margin was 49.0%, while non-GAAP gross margin was 49.1%, showing slight improvements year-over-year [5][7] - Operating income on a GAAP basis was $1.83 billion (26.1% of net revenue), and on a non-GAAP basis, it was $2.11 billion (30.0% of net revenue) [2][5] - Net income increased by 71% to $2.03 billion, with diluted earnings per share (EPS) rising 75% to $2.54 [5][7] Cash Flow and Shareholder Returns - The company generated $1.69 billion in cash from operations and returned $702 million to shareholders through share repurchases and dividends [3][5] - Non-GAAP free cash flow for the quarter was $1.04 billion, a 91% increase from $544 million in the previous year [5][34] Business Outlook - For Q2 FY2026, Applied expects total revenue of approximately $7.65 billion, with non-GAAP diluted EPS projected at $2.64 [9] - The semiconductor equipment business is anticipated to grow over 20% in the calendar year, driven by demand for advanced technologies [4][9] Segment Performance - Semiconductor Systems revenue was $5.14 billion, down from $5.60 billion in the previous year, with a gross margin of 54.3% [11][12] - Applied Global Services reported revenue of $1.56 billion, up from $1.35 billion, with a gross margin of 34.4% [13][12] Recent Developments - Samsung Electronics will join Applied's new EPIC Center in Silicon Valley, aimed at accelerating the commercialization of breakthrough technologies [6][12] - The company introduced new systems to enhance the performance of next-generation transistors, receiving awards for technology development and sustainability [12][19]