Applied Materials (NASDAQ:AMAT) Announces Quarterly Earnings Results

Applied Materials (NASDAQ:AMAT) released its earnings results on Thursday. The manufacturing equipment provider reported $4.16 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.10, FiscalAI reports. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The business had revenue of $10.41 billion for the quarter, compared to analyst estimates of $10.30 billion. During the same quarter last year, the firm posted $2.17 earnings per share. Applied Materials updated its Q1 2027 guidance to 4.150-4.550 EPS.

Here are the key takeaways from Applied Materials’ conference call:

• Applied Materials reported a record fiscal 2026, with revenue up more than 21% to $34.4 billion and non-GAAP EPS up 37% to $12.89. Q4 revenue reached a record $10.4 billion, while non-GAAP gross margin expanded to 50.6%.
• Management expects semiconductor systems revenue to grow more than 40% in calendar 2026 and sees wafer fab equipment demand rising more than 30% in 2027, with Applied expecting to outperform. Its Q1 outlook calls for $11.1 billion in revenue and non-GAAP EPS of $4.35 at the midpoint.
• AI-driven demand is strongest in leading-edge logic, DRAM, and advanced packaging, where Applied says its technology positions support share gains; advanced packaging revenue is expected to rise around 90% in calendar 2026. The company also cited growing demand for inspection and metrology, with that business on track to grow more than 50% this calendar year.
• Rapid growth depends on supply-chain capacity and clean-room availability, and management acknowledged that component pinch points slightly limited its Q1 outlook. Applied is expanding production capacity, but executives said the pace of industry growth will depend on how quickly fabs and suppliers can scale.
• Applied plans to double systems output from Q4 2026 levels by 2028 and more than double manufacturing and lab capacity by 2030, supported by customer forecasts and a growing pipeline of fab projects. It also returned more than $4.7 billion to shareholders in fiscal 2026 and expects to distribute 80%–100% of free cash flow over time.

Applied Materials Stock Down 6.1%

Shares of NASDAQ AMAT traded down $23.11 during midday trading on Friday, reaching $357.84. 3,939,311 shares of the company’s stock traded hands, compared to its average volume of 7,910,717. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock’s 50 day simple moving average is $439.22 and its 200-day simple moving average is $445.83. Applied Materials has a one year low of $203.40 and a one year high of $739.67. The company has a market cap of $283.98 billion, a price-to-earnings ratio of 30.98, a P/E/G ratio of 0.77 and a beta of 1.67.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.53 per share. The ex-dividend date is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Trending Headlines about Applied Materials

These are some of the AMAT headlines that stood out recently:

• Positive Sentiment: Management expects Semiconductor Systems sales to grow more than 40% in calendar 2026 and sees another record year in 2027, citing strong AI-chip demand. Customers are seeking earlier deliveries, while component and clean-room capacity—not demand—is limiting shipments. 2026 growth outlook
• Neutral Sentiment: Management expects China to account for less than a quarter of shipments in 2027. Reduced exposure may ease concerns about export restrictions, though China remains a source of uncertainty. China and demand commentary
• Negative Sentiment: At least 10 firms lowered price targets after the results, even as most maintained Buy ratings; Summit Insights downgraded the stock to Hold. The revisions may reflect valuation concerns and lingering caution about the chip-equipment sector. Broader weakness and concerns tied to Nvidia are also weighing on sentiment. Analyst target changes

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on AMAT shares. Deutsche Bank reissued a “buy” rating and issued a $605.00 price objective (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. Craig Hallum upped their target price on shares of Applied Materials from $530.00 to $585.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. KeyCorp reaffirmed an “overweight” rating on shares of Applied Materials in a research report on Friday. New Street Research decreased their price target on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating for the company in a research note on Friday, August 14th. Finally, Argus set a $600.00 price target on shares of Applied Materials and gave the company a “buy” rating in a research note on Tuesday, August 18th. Twenty-nine analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $600.34.

Insider Buying and Selling

In related news, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at $61,637,780.25. The trade was a 5.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the transaction, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 9,225 shares of company stock valued at $4,454,181 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.