Applied Materials (NASDAQ:AMAT) Releases Q4 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its fourth quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.820-4.220 for the period, compared to the consensus earnings per share estimate of 3.650. The company issued revenue guidance of $9.8 billion-$10.8 billion, compared to the consensus revenue estimate of $9.5 billion.

Applied Materials Stock Performance

Shares of NASDAQ AMAT opened at $534.54 on Friday. Applied Materials has a one year low of $154.46 and a one year high of $739.67. The firm has a market capitalization of $424.40 billion, a price-to-earnings ratio of 50.19, a PEG ratio of 1.38 and a beta of 1.61. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The business has a fifty day simple moving average of $563.06 and a 200 day simple moving average of $444.45.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the previous year, the company earned $2.48 earnings per share. The business’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts expect that Applied Materials will post 12.22 EPS for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Analyst Ratings Changes

AMAT has been the subject of several analyst reports. Wolfe Research boosted their target price on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. JPMorgan Chase & Co. increased their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Sanford C. Bernstein reiterated an “outperform” rating and set a $525.00 price target on shares of Applied Materials in a report on Friday, May 15th. Barclays raised their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Finally, Susquehanna raised their price objective on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Applied Materials presently has an average rating of “Moderate Buy” and an average price target of $602.26.

Insider Buying and Selling at Applied Materials

In other news, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the transaction, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Gary E. Dickerson sold 20,000 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the sale, the chief executive officer owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 278,088 shares of company stock valued at $169,654,805. Insiders own 0.30% of the company’s stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials reported record fiscal third-quarter revenue of $9.12 billion, up 24.8% year over year, while adjusted EPS of $3.50 exceeded the $3.40 consensus estimate. Applied Materials Announces Third Quarter 2026 Results
• Positive Sentiment: Management issued fourth-quarter guidance above Wall Street expectations, calling for revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, supported by sustained AI-related semiconductor equipment demand. Applied Materials forecasts quarterly revenue above estimates
• Positive Sentiment: Non-GAAP gross margin reached a record 50.4%, and the company said AI infrastructure spending is providing unusually strong visibility into demand. Applied Materials also plans to double quarterly DRAM equipment production capacity by 2028, signaling confidence in memory investment. Applied Materials Sees Another Record Year in 2027
• Neutral Sentiment: Broader market conditions were mixed, with technology indexes firm but uncertainty surrounding geopolitics and concerns that the semiconductor cycle may be approaching a peak. Stock Market Today
• Negative Sentiment: Investors appear to have expected an even stronger outlook after AMAT’s substantial run. At roughly 50 times earnings, the stock has limited room for an ordinary beat, while intensifying competition is raising questions about the pace and durability of future growth. Applied Materials slips as investors seek faster growth
• Negative Sentiment: Some reports also highlighted a GAAP EPS shortfall relative to the market’s “whisper” expectations and an investment loss, adding to the cautious reaction despite the adjusted earnings and revenue beats. Applied Materials Stock Drops Despite Strong Q3 Beat

Hedge Funds Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in AMAT. Compound Planning Inc. increased its position in Applied Materials by 15.5% during the 4th quarter. Compound Planning Inc. now owns 10,757 shares of the manufacturing equipment provider’s stock valued at $2,764,000 after buying an additional 1,440 shares in the last quarter. Rare Wolf Capital LLC bought a new position in Applied Materials in the 4th quarter worth about $255,000. Strive Financial Group LLC bought a new stake in Applied Materials during the 4th quarter valued at about $407,000. First Commonwealth Financial Corp PA raised its holdings in Applied Materials by 5.6% in the fourth quarter. First Commonwealth Financial Corp PA now owns 6,089 shares of the manufacturing equipment provider’s stock worth $1,565,000 after buying an additional 321 shares during the last quarter. Finally, Blue Sparrow LLC DE bought a new position in shares of Applied Materials in the fourth quarter worth approximately $30,711,000. Institutional investors 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.