06:18 AM EST, 02/13/2026 (MT Newswires) -- Applied Materials ( AMAT ) shares jumped early Friday as the semiconductor equipment maker issued an upbeat fiscal second-quarter outlook at the midpoint and reported better-than-expected results for the prior three-month period.

The company anticipates adjusted earnings to be at $2.64 a share, plus or minus $0.20, for the ongoing quarter, it said late Thursday. Revenue is pegged at $7.65 billion, plus or minus $500 million. The current consensus on FactSet is for non-GAAP EPS of $2.49 and sales of $7.43 billion.

The stock climbed 12% in the most recent premarket activity.

"Looking ahead to (the second quarter), we anticipate strong growth in our semiconductor systems business, along with healthy gross margin and increasing profitability for the company," Chief Financial Officer Brice Hill said during an earnings call, according to a FactSet transcript.

Within the revenue guidance, Applied Materials ( AMAT ) projects the semiconductor systems business to record sales of about $5.8 billion, while the applied global services division revenue is expected to be roughly $1.6 billion, Hill said on the call.

For the three months through Jan. 25, the company's adjusted EPS remained unchanged year over year at $2.38, defying the Street's view for a decline to $2.21. Revenue decreased 2% to $7.01 billion, but came in ahead of the average analyst estimate of $6.87 billion.

"Applied Materials ( AMAT ) delivered revenue and earnings above the midpoint of our guided range," Chief Executive Gary Dickerson told analysts on the call. "With the accelerated growth of (artificial intelligence) end markets, we believe that global semiconductor industry revenues can potentially reach $1 trillion in 2026, several years earlier than prior predictions."

Sales in the semiconductor systems segment fell to $5.14 billion from nearly $5.6 billion, while applied global services advanced to $1.56 billion from $1.35 billion.

Adjusted gross margin came in at 49.1% versus 48.9% in the prior-year period. Operating expenses rose to $1.6 billion from $1.32 billion on a yearly basis.