Earnings Analysis - Cisco, Coherent & More

AMAT, CSCO, COHR, CBRS, CRWV, SMCI, RKLB, SPG

Dear Investor, Welcome to Deep Research Global.

---

In case you missed it, here are the latest reports:

• Palantir (PLTR)

• T-Mobile (TMUS)

• Pfizer (PFE)

---

Earnings analysis included today, at a glance:

• Applied Materials (AMAT) - Q3 FY2026 earnings

• Cisco Systems (CSCO) - Q4 FY2026 earnings

• Coherent Corp. (COHR) - Q4 FY2026 earnings

• Cerebras Systems (CBRS) - Q2 FY2026 earnings

• CoreWeave (CRWV) - Q2 FY2026 earnings

• Super Micro Computer (SMCI) - Q4 FY2026 earnings

• Rocket Lab Corporation (RKLB) - Q2 FY2026 earnings

• Simon Property Group (SPG) - Q2 FY2026 earnings.

---

Applied Materials (AMAT) - Q3 FY2026

Image source: Applied Materials

Applied Materials (AMAT) delivered its record third quarter for fiscal 2026, reinforcing its position as the largest semiconductor capital equipment vendor riding the AI compute wave.

Revenue of $9.12 billion came in above the Street’s $9.00 billion consensus, growing 25% year-over-year, while non-GAAP diluted EPS of $3.50 beat the $3.45 estimate.

The reading is unambiguous. Leading-edge foundry-logic customers are pulling forward orders for gate-all-around and advanced DRAM tools, and Applied’s exposure to those transitions is finally showing up cleanly in the P&L.

Segment performance was led by Semiconductor Systems.

Q3 FY2026 Segment Revenue (millions USD)
- Semiconductor Systems:       $7,040   (55.3% GAAP gross margin)
- Applied Global Services:     $1,781   (35.6% GAAP gross margin)
- Other (incl. Display):         $294   (operating loss of $118M)
Total Q3 FY2026 Revenue:       $9,120

In terms of operating income, Semiconductor Systems generated $2.66 billion of segment operating income, underscoring how much of the AI capex cycle flows straight through the fab equipment line.

Applied Global Services, the recurring parts-and-service arm tied to installed base utilization, produced $536 million in operating profit and remains one of the most resilient revenue streams in the semi-cap group.

Profitability continues to expand.

GAAP gross margin printed 50.3%, and non-GAAP gross margin at 50.4%. On an operating basis, the company delivered $3.10 billion of non-GAAP operating income, or 34.0% of revenue. GAAP net income was $2.54 billion, translating to $3.17 in diluted EPS.

For investors focused on cash returns, the story stays constructive. Applied continues to lean into buybacks and dividends, funded by a business now generating billions in quarterly revenue with mid-30s operating margins.

Q3 FY2026 Snapshot vs Prior Year (Non-GAAP)
- Revenue:      $9.12B  vs  ~$7.30B  (+25% YoY)
- Gross Margin: 50.4%   (+~170 bps YoY)

The guide is where the print really shifted the narrative.

Applied is projecting Q4 FY2026 revenue of $10.25 billion ± $500 million, with non-GAAP EPS of $4.02 ± $0.20.

That midpoint implies another sequential double-digit acceleration into fiscal year-end and validates commentary from foundry customers about accelerating equipment installs to support 2-nanometer and high-bandwidth memory ramps.

Two structural themes stand out from the release and prior filings.

1. Advanced packaging and high-bandwidth memory investment continues to be a differentiator, as Applied holds strong positions in atomic layer deposition, chemical mechanical polishing, and etch tools that are disproportionately required for HBM stacks.

2. ICAPS demand (image sensors, communications, analog, power, and specialty devices) is stabilizing after a soft patch, taking one of the biggest bear cases off the table.

Risk factors have not diminished though.

Export controls to China continue to represent a meaningful portion of the addressable market, and the company remains exposed to any tightening of U.S.-China semiconductor trade policy.

Even so, Q3 print is a strong validation that Applied’s core end markets are compounding, and the raised outlook is one of the more bullish signals.

---

Cisco Systems (CSCO) - Q4 FY2026