04:35 PM EDT, 08/15/2024 (MT Newswires) -- Applied Materials ( AMAT ) late Thursday reported stronger-than-expected results for the fiscal third quarter as the semiconductor equipment supplier benefited from rising artificial intelligence adoption.

Adjusted earnings per share increased to $2.12 during the three months ended July 28 from $1.90 a year earlier, topping the Capital IQ-polled $2.02 consensus. Revenue rose 5% to $6.78 billion, ahead of analysts' $6.67 billion estimate.

"The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term," Chief Executive Gary Dickerson said in a statement.

Sales in the semiconductor systems segment increased to $4.92 billion from $4.68 billion, while applied global services rose to $1.58 billion from $1.46 billion.

Display and adjacent markets revenue grew to $251 million from $235 million in the 2023 quarter, according to the company.

Applied Materials ( AMAT ) expects fourth-quarter adjusted EPS of $2 to $2.36 on estimated revenue of $6.93 billion, plus or minus $400 million. The consensus is for normalized EPS of $2.14 and revenue of $6.92 billion.

Price: 209.00, Change: -2.83, Percent Change: -1.34