Applied Materials (NASDAQ:AMAT) Updates Q3 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.160-3.560 for the period, compared to the consensus earnings per share estimate of 2.910. The company issued revenue guidance of $8.5 billion-$9.5 billion, compared to the consensus revenue estimate of $8.2 billion.

Applied Materials Stock Up 0.8%

NASDAQ AMAT traded up $3.38 during trading hours on Thursday, reaching $439.99. 8,958,835 shares of the company traded hands, compared to its average volume of 7,237,779. Applied Materials has a 12 month low of $153.47 and a 12 month high of $448.45. The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $349.18 billion, a PE ratio of 45.03, a PEG ratio of 1.91 and a beta of 1.66. The company has a 50 day moving average of $375.73 and a two-hundred day moving average of $317.13.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $999.00 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $996.32. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts expect that Applied Materials will post 11.16 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s dividend payout ratio is currently 21.70%.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on AMAT. Barclays upped their price target on shares of Applied Materials from $360.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday, February 13th. Sanford C. Bernstein restated an “outperform” rating and set a $425.00 price target on shares of Applied Materials in a research report on Friday, February 13th. Needham & Company LLC upped their price target on shares of Applied Materials from $390.00 to $440.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Mizuho upped their price target on shares of Applied Materials from $370.00 to $410.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. Finally, TD Cowen upped their price target on shares of Applied Materials from $315.00 to $450.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $384.52.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 534 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the transaction, the chief accounting officer owned 4,625 shares in the company, valued at $1,753,615. This represents a 10.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Judy Bruner sold 3,969 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the completion of the transaction, the director owned 28,589 shares of the company’s stock, valued at $10,778,624.78. This represents a 12.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 12,003 shares of company stock worth $4,484,189 in the last 90 days. Corporate insiders own 0.30% of the company’s stock.

More Applied Materials News

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Wall Street sentiment has turned increasingly bullish ahead of earnings, with multiple firms lifting price targets on expectations that Applied Materials will benefit from the AI chip buildout and strong demand in DRAM and logic. Analysts Say Applied Materials Is Built For The AI Chip Supercycle
• Positive Sentiment: Analysts expect Q2 revenue and EPS to come in above year-ago levels, with forecasts around $2.68 EPS and $7.69 billion in revenue, reinforcing the view that AI spending is driving results. Why Applied Materials (AMAT) Stock Is a Buy Heading Into Its Earnings
• Positive Sentiment: Applied Materials deepened its AI infrastructure position through a partnership with TSMC, aiming to support next-generation semiconductor scaling and advanced packaging technologies. How Applied Materials (AMAT) Is Deepening Its Role in AI Chip Manufacturing
• Neutral Sentiment: Options traders are pricing in a sizable post-earnings move, suggesting the report could drive volatility either way depending on management’s outlook. Applied Materials Last-Minute Q2 Earnings Alert
• Neutral Sentiment: Investor debate remains focused on whether booming AI-related capex can continue offsetting slower growth from China, which is the main risk heading into the release. Can Applied Materials justify its massive stock rally in its Q2 earnings
• Negative Sentiment: Export restrictions and softer Chinese demand could pressure results or guidance, making the upcoming earnings call a key test for the stock’s recent run-up. Applied Materials’ Coming AI Boom Comes Under the Microscope as It Reports Earnings

Hedge Funds Weigh In On Applied Materials

Several large investors have recently made changes to their positions in the business. Warther Private Wealth LLC boosted its position in shares of Applied Materials by 1.5% during the 4th quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock valued at $490,000 after purchasing an additional 28 shares in the last quarter. Hoxton Planning & Management LLC boosted its position in shares of Applied Materials by 1.4% during the 4th quarter. Hoxton Planning & Management LLC now owns 2,208 shares of the manufacturing equipment provider’s stock valued at $567,000 after purchasing an additional 31 shares in the last quarter. GW&K Investment Management LLC boosted its position in shares of Applied Materials by 3.9% during the 4th quarter. GW&K Investment Management LLC now owns 897 shares of the manufacturing equipment provider’s stock valued at $231,000 after purchasing an additional 34 shares in the last quarter. Kirtland Hills Capital Management LLC boosted its position in shares of Applied Materials by 0.7% during the 4th quarter. Kirtland Hills Capital Management LLC now owns 4,720 shares of the manufacturing equipment provider’s stock valued at $1,213,000 after purchasing an additional 35 shares in the last quarter. Finally, Sumitomo Life Insurance Co. boosted its position in shares of Applied Materials by 0.7% during the 4th quarter. Sumitomo Life Insurance Co. now owns 5,761 shares of the manufacturing equipment provider’s stock valued at $1,481,000 after purchasing an additional 38 shares in the last quarter. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.