Applied Materials (NASDAQ:AMAT) Releases Q2 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.440-2.840 for the period, compared to the consensus EPS estimate of 2.290. The company issued revenue guidance of $7.2 billion-$8.2 billion, compared to the consensus revenue estimate of $7.0 billion.

Applied Materials Price Performance

Shares of AMAT stock traded down $11.42 on Thursday, reaching $328.46. 9,525,942 shares of the company were exchanged, compared to its average volume of 8,195,861. Applied Materials has a 1 year low of $123.74 and a 1 year high of $344.60. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The business has a 50-day moving average price of $292.28 and a 200 day moving average price of $234.59. The company has a market cap of $260.71 billion, a price-to-earnings ratio of 37.84, a P/E/G ratio of 2.92 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.The firm had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.88 billion. During the same period in the previous year, the business earned $2.38 earnings per share. The firm’s revenue for the quarter was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities research analysts forecast that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Thursday, February 19th. Applied Materials’s payout ratio is currently 21.20%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. TD Cowen reissued a “buy” rating on shares of Applied Materials in a research note on Thursday, December 4th. BNP Paribas Exane raised shares of Applied Materials to a “hold” rating in a research report on Monday, November 17th. KeyCorp raised their price objective on shares of Applied Materials from $285.00 to $380.00 and gave the company an “overweight” rating in a research note on Friday, January 16th. Morgan Stanley upped their target price on shares of Applied Materials from $273.00 to $364.00 and gave the stock an “overweight” rating in a research note on Monday, February 2nd. Finally, Needham & Company LLC increased their target price on shares of Applied Materials from $260.00 to $390.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Twenty-four investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $315.15.

Insiders Place Their Bets

In other news, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This trade represents a 12.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Teri A. Little sold 4,000 shares of the stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the transaction, the senior vice president owned 84,351 shares in the company, valued at $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 8,609 shares of company stock valued at $2,044,898. Insiders own 0.30% of the company’s stock.

Key Applied Materials News

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

• Positive Sentiment: Q1 earnings and revenue beat — AMAT reported $2.38 EPS and $7.01B revenue, topping consensus and demonstrating healthy margins and profitability that underpin investor confidence. Applied Materials (AMAT) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Strong forward guidance — management set Q2 FY2026 EPS guidance (2.440–2.840) and revenue targets above Street expectations, signaling continued demand for semiconductor equipment driven by AI processors. This guidance is the key driver of the after‑hours rally. Applied Materials forecasts second-quarter sales above estimates
• Positive Sentiment: AI and industry positioning — analysts and commentary point to accelerating AI/HPC capex (DRAM, advanced logic, packaging) and recurring service revenue as structural growth drivers; several firms have raised targets and reiterated Buy ratings ahead of the print. How to Read Applied Materials Earnings: What Signals Move the Stock?
• Positive Sentiment: Strategic partnerships — Samsung agreed to join AMAT’s new $5B EPIC R&D center, reinforcing customer relationships and R&D scale that support long-term demand and product leadership. Applied Materials Announces Samsung Electronics Will Join the New, Multibillion-Dollar EPIC Center
• Neutral Sentiment: Regulatory closure reduces uncertainty — the DOJ and SEC have closed related investigations without action, which removes a material legal overhang and clarifies near-term risk. That reduced uncertainty likely helped investor reaction even though a settlement was paid. Applied Materials Announces First Quarter 2026 Results
• Negative Sentiment: $252.5M export settlement — AMAT agreed to pay $252.5M to the U.S. Department of Commerce to resolve alleged export-control violations for certain shipments to China (Nov 2020–Jul 2022). The payment is a one‑time hit and raises compliance/controls questions, though management frames the resolution as in shareholders’ best interest. Applied Materials to pay $252 million to resolve illegal chip exports, US says

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently made changes to their positions in the business. Triumph Capital Management purchased a new position in Applied Materials in the third quarter worth $38,000. Swiss RE Ltd. purchased a new stake in Applied Materials in the 4th quarter valued at approximately $75,000. Rakuten Securities Inc. boosted its stake in shares of Applied Materials by 38.9% during the second quarter. Rakuten Securities Inc. now owns 439 shares of the manufacturing equipment provider’s stock valued at $80,000 after acquiring an additional 123 shares during the last quarter. McMillan Office Inc. acquired a new stake in shares of Applied Materials during the 4th quarter worth about $90,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in Applied Materials in the 3rd quarter worth approximately $110,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Company Profile

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.