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

Key Points

• Applied Materials raised its Q3 2026 guidance, forecasting EPS of $3.16 to $3.56 and revenue of $8.5 billion to $9.5 billion, both above Wall Street’s expectations.
• Analyst sentiment remains bullish, with multiple firms recently upgrading the stock or lifting price targets amid optimism around AI-chip demand and semiconductor spending.
• The stock has been trading near record highs after a recent rally, and investors are watching for whether strong AI-related demand can offset risks from China and export restrictions.

Applied Materials (NASDAQ:AMAT - Get Free Report) updated its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 3.160-3.560 for the period, compared to the consensus EPS 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.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on AMAT. Summit Insights upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a report on Friday, February 13th. Barclays boosted their price objective on shares of Applied Materials from $360.00 to $450.00 and gave the stock an "overweight" rating in a research note on Friday, February 13th. KGI Securities upgraded shares of Applied Materials to an "outperform" rating and set a $425.00 price objective for the company in a research note on Friday, February 13th. Morgan Stanley boosted their price objective on shares of Applied Materials from $432.00 to $454.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 5th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $500.00 price objective on shares of Applied Materials in a research note on Tuesday. Twenty-eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, Applied Materials has a consensus rating of "Moderate Buy" and a consensus target price of $384.52.

Applied Materials Trading Up 0.8%

AMAT traded up $3.38 during trading on Thursday, hitting $439.99. 8,958,835 shares of the company's stock were exchanged, compared to its average volume of 7,237,779. The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. Applied Materials has a 1 year low of $153.47 and a 1 year high of $448.45. The stock has a 50 day moving average price of $375.73 and a 200 day moving average price of $317.13. The firm has a market cap of $349.18 billion, a P/E ratio of 45.03, a price-to-earnings-growth ratio of 1.91 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $999.00 earnings per share (EPS) for the quarter, topping the consensus estimate 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, analysts expect that Applied Materials will post 11.16 EPS for the current fiscal year.

Applied Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is a boost from Applied Materials's previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. Applied Materials's payout ratio is currently 21.70%.

Insider Activity

In other news, CAO Adam Sanders sold 534 shares of the company's stock in a transaction on 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 directly owned 4,625 shares in the company, valued at approximately $1,753,615. This represents a 10.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Judy Bruner sold 3,969 shares of the company's stock in a transaction on 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 trade represents a 12.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 12,003 shares of company stock worth $4,484,189. 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: 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 institutional investors and hedge funds have recently made changes to their positions in the business. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the 4th quarter valued at $26,000. Triumph Capital Management bought a new position in Applied Materials during the 3rd quarter valued at $38,000. Swiss RE Ltd. bought a new position in Applied Materials during the 4th quarter valued at $75,000. Rakuten Securities Inc. boosted its stake in Applied Materials by 38.9% during the 2nd 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. Finally, Kemnay Advisory Services Inc. bought a new position in Applied Materials during the 4th quarter valued at $81,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.

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