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

Key Points

• Applied Materials issued above-consensus Q4 2026 guidance, forecasting EPS of $3.82–$4.22 versus the $3.65 consensus and revenue of $9.8–$10.8 billion versus expectations of $9.5 billion.
• The stock fell 2.5% to $534.54 despite strong recent results, with investors weighing AI-driven semiconductor demand against elevated valuation, China uncertainty and potential margin pressure.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $603.23; the company also declared a quarterly dividend of $0.53 per share.

Applied Materials (NASDAQ:AMAT - Get Free Report) updated its fourth quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 3.820-4.220 for the period, compared to the consensus 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 Trading Down 2.5%

Shares of AMAT traded down $13.61 during trading hours on Thursday, reaching $534.54. 10,841,962 shares of the company traded hands, compared to its average volume of 8,198,248. The firm has a market cap of $424.40 billion, a price-to-earnings ratio of 50.19, a PEG ratio of 1.33 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. Applied Materials has a 12-month low of $154.46 and a 12-month high of $739.67. The stock's fifty day moving average price is $562.41 and its 200 day moving average price is $442.96.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $9.12 billion during the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials will post 12.22 earnings per share for the current year.

Applied Materials Dividend Announcement

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

Analysts Set New Price Targets

AMAT has been the topic of several analyst reports. Seaport Research Partners began coverage on Applied Materials in a research note on Monday, May 4th. They issued a "buy" rating and a $500.00 price objective on the stock. JPMorgan Chase & Co. boosted their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Jefferies Financial Group increased their price target on shares of Applied Materials from $510.00 to $770.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. Wells Fargo & Company increased their price target on Applied Materials from $715.00 to $740.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $645.00 target price on shares of Applied Materials in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $603.23.

Insider Transactions at Applied Materials

In other Applied Materials news, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total value of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares in the company, valued at $1,006,503,625. The trade was a 4.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares of the company's stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 in the last ninety days. Company insiders own 0.30% of the company's stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Optimism is being driven by expectations for strong AI-related semiconductor-equipment demand. Analysts anticipate approximately $9 billion in revenue and $3.39 in EPS, while Applied Materials expects semiconductor-equipment growth of more than 30% in 2026. Applied Materials earnings estimates
• Positive Sentiment: Zacks upgraded AMAT to Rank #1, or Strong Buy, citing improving earnings prospects. Zacks’ earnings model also signals another potential earnings beat, supporting near-term investor confidence. Zacks rating upgrade
• Positive Sentiment: Semiconductor-equipment shares received a lift after SanDisk issued bullish financial targets, reinforcing the view that AI infrastructure and memory demand could benefit Applied Materials. The company is also expanding AI-chip research through a collaboration with UC Berkeley. Semiconductor equipment shares rise after SanDisk targets
• Neutral Sentiment: Investors are focused on management’s outlook for AI-driven equipment demand, margins, China exposure and the sustainability of the recent rally. Technical analysts identify roughly $555 as a key resistance level, making the earnings reaction particularly important. Applied Materials Q3 earnings risks
• Negative Sentiment: Options positioning is cautious, with reports citing an elevated put-to-call ratio and expectations for a sizable post-earnings move. Concerns about margin pressure, China-related uncertainty and the stock’s elevated valuation could weigh on AMAT if results merely meet expectations. Applied Materials options market signals

Institutional Investors Weigh In On Applied Materials

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC grew its stake in Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock valued at $2,061,000 after purchasing an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Applied Materials by 26.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock worth $590,000 after purchasing an additional 679 shares during the last quarter. Forefront Wealth Partners LLC bought a new position in shares of Applied Materials during the second quarter worth about $410,000. Schnieders Capital Management LLC. increased its stake in shares of Applied Materials by 30.1% in the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock valued at $2,747,000 after purchasing an additional 3,469 shares during the period. Finally, Sei Investments Co. boosted its position in Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock worth $77,383,000 after acquiring an additional 157,426 shares during the period. Hedge funds and other institutional investors own 80.56% of the company's stock.

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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