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

Key Points

• Applied Materials set Q2 2026 guidance at EPS $2.440–$2.840 and revenue of $7.2–$8.2 billion, both above Street estimates, citing strength tied to accelerating demand for AI processors.
• The company agreed to a $252.5 million settlement with the U.S. Department of Commerce to resolve past export allegations, a one‑time expense that closed related DOJ/SEC probes and reduces regulatory uncertainty.
• Analyst sentiment is broadly positive — 24 Buys vs. 8 Holds with a consensus target of $315.15 and several recent price‑target increases into the roughly $360–$405 range.

Applied Materials (NASDAQ:AMAT - Get Free Report) 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.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. BNP Paribas Exane raised shares of Applied Materials to a "hold" rating in a research report on Monday, November 17th. KeyCorp upped their target price on shares of Applied Materials from $285.00 to $380.00 and gave the company an "overweight" rating in a report on Friday, January 16th. Needham & Company LLC lifted their price target on Applied Materials from $260.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, January 20th. UBS Group reissued a "buy" rating and set a $405.00 price target on shares of Applied Materials in a research report on Monday, February 2nd. Finally, Barclays upgraded Applied Materials from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $250.00 to $360.00 in a research note on Thursday, January 15th. Twenty-four research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $315.15.

Applied Materials Stock Performance

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

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate of $2.21 by $0.17. The company had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, equities analysts forecast that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently announced 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. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.6%. Applied Materials's dividend payout ratio (DPR) is currently 21.20%.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 609 shares of the company's stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the transaction, the chief accounting officer directly owned 4,413 shares in the company, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Teri A. Little sold 4,000 shares of the firm's stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares in the company, valued at approximately $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 three months, insiders sold 8,609 shares of company stock valued at $2,044,898. 0.30% of the stock is currently owned by company insiders.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Q1 beat and upbeat guidance — AMAT reported Q1 results that topped estimates (EPS and revenue) and issued strong guidance, citing accelerating demand for AI processors; that combination pushed shares notably higher in after‑hours trading. Applied Materials Beats Q1 Estimates, Issues Strong Guidance, Shares Surge
• Positive Sentiment: Q2 revenue outlook above estimates — management forecast second‑quarter sales above Street expectations, explicitly tying strength to AI processor demand, which supports further upside if orders validate the outlook. Applied Materials forecasts second-quarter sales above estimates
• Positive Sentiment: Analyst and sentiment tailwinds — multiple firms have raised targets or reiterated buys into earnings (some targets near $360–$400), reinforcing investor bullishness into the report. B. Riley Raises Applied Materials Price Target to $400
• Neutral Sentiment: Settlement resolves export probe — Applied agreed to pay $252.5M to the U.S. Department of Commerce to settle allegations about past exports to China; the DOJ and SEC closed related probes without action. The deal removes uncertainty but imposes a one‑time expense small relative to AMAT’s market cap. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Neutral Sentiment: Macro/valuation context — coverage pieces note AMAT’s strong run and high multiples; that amplifies upside on beats but increases risk of profit‑taking if guidance or orders miss. How to Read Applied Materials Earnings
• Negative Sentiment: Headline noise and confusion — some outlets initially ran inflated/incorrect figures around the export matter (e.g., misreported fines), which can spook short‑term traders and increase volatility. Applied Materials fined $25 billion (misreported)
• Negative Sentiment: Insider selling and governance scrutiny — recent disclosures show insider share sales and the settlement highlights past compliance gaps; these are modest but worth monitoring for governance/operational risk. Quiver Quant summary of settlement

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock valued at $1,869,170,000 after purchasing an additional 7,856,576 shares in the last quarter. Rafferty Asset Management LLC lifted its position in shares of Applied Materials by 39.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 2,502,036 shares of the manufacturing equipment provider's stock worth $458,048,000 after buying an additional 706,939 shares during the last quarter. California Public Employees Retirement System boosted its stake in Applied Materials by 25.8% in the fourth quarter. California Public Employees Retirement System now owns 2,058,801 shares of the manufacturing equipment provider's stock valued at $529,091,000 after buying an additional 422,453 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its stake in Applied Materials by 7.1% in the third quarter. CANADA LIFE ASSURANCE Co now owns 1,486,828 shares of the manufacturing equipment provider's stock valued at $304,660,000 after buying an additional 98,978 shares in the last quarter. Finally, Raymond James Financial Inc. grew its position in Applied Materials by 9.6% in the third quarter. Raymond James Financial Inc. now owns 1,319,489 shares of the manufacturing equipment provider's stock valued at $270,152,000 after acquiring an additional 115,226 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

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.

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