The Santa Clara-based company reported a 12% increase in revenue year over year to $3.96 billion while earnings rose 27% year over year to 89 cents per share.
Analysts were expecting the company to report earnings of 95 cents per share on revenue of $4.15 billion.
Applied Materials shares fell 2.1% to $53.30 after hours.
"As we navigate the challenges created by COVID-19, we have rallied the company around safety, productivity and keeping our customers and the industry moving forward,” said Gary Dickerson president and CEO. “While the situation remains fluid, based on the visibility we have today, our supply chain is recovering, and underlying demand for our semiconductor equipment and services remains robust.”
Applied Materials withdrew its second quarter guidance in March because the coronavirus outbreak was causing disruptions to the company's supply chain and manufacturing operations.
Shares of Applied Materials and fellow chip equipment stocks rose sharply on Thursday after a report from the WSJ that Taiwan Semiconductor was set to announce plans to build a significant chipmaking plant in Arizona. The thinking is that these U.S. equipment providers would face fewer export restrictions if selling to a plant in the U.S. versus one in Taiwan.
Semiconductor equipment stocks have faced headwinds since the U.S. Commerce Department announced new rules on April 27 that would make it more difficult for chip gear vendors to sell equipment to factories that make chips for Chinese companies.
Those rules are set to take effect on June 29.
The Commerce Department said that the move is designed to prevent countries like China, Russia and Venezuela from acquiring U.S. technology that can be used in the development of weapons, military aircraft, or surveillance technology..
Chip gear vendors will now have to receive export licenses from the Commerce Department to deal with those countries.