Applied Materials projected fiscal fourth-quarter revenue of about $10.25 billion, plus or minus $500 million, and adjusted earnings of $3.82 to $4.22 a share after posting record fiscal third-quarter results, but the stock still fell more than 5% in premarket trading on Friday. Third-quarter revenue rose 25% from a year earlier to $9.12 billion, above estimates of $8.99 billion, while adjusted earnings of $3.50 a share beat expectations of $3.40. Adjusted gross margin reached a record 50.4% and operating margin hit a record 34%, extending a 13-quarter streak of year-over-year gross margin expansion. Growth was driven by Semiconductor Systems, where revenue climbed to a record $7 billion on demand tied to gate-all-around and FinFET capacity additions, while DRAM revenue, including high-bandwidth memory packaging, jumped 52% from a year earlier. Applied Global Services revenue also rose to a record $1.8 billion. Management said the rapid buildout of AI infrastructure is giving the company unusually strong visibility, with some customer discussions extending to 2030, and said it expects another strong record year in 2027. The company said leading-edge logic, DRAM and advanced packaging should account for about 80% of wafer fab equipment growth in 2026 and 2027, and it aims to double quarterly systems output by 2028. China represented 26% of Semiconductor Systems and Applied Global Services revenue, and Applied said it expects growth there in 2026, supported by 28-nanometer foundry investment.