Applied Materials (NASDAQ:AMAT) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• Applied Materials reported earnings of $2.48 EPS for the quarter, surpassing expectations by $0.14 and showing a 7.7% increase in quarterly revenue compared to the previous year.
• The company's stock declined by 0.9% to $188.24 despite positive earnings results, alongside an update in their Q4 2025 earnings guidance.
• Applied Materials announced a quarterly dividend of $0.46, with a 1.0% dividend yield, and a dividend payout ratio of 22.38%.

Applied Materials (NASDAQ:AMAT - Get Free Report) issued its earnings results on Thursday. The manufacturing equipment provider reported $2.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.36 by $0.12, Zacks reports. Applied Materials had a net margin of 24.06% and a return on equity of 40.15%. The firm had revenue of $7.30 billion for the quarter, compared to analysts' expectations of $7.21 billion. During the same quarter last year, the business earned $2.12 earnings per share. The business's revenue was up 7.7% on a year-over-year basis. Applied Materials updated its Q4 2025 guidance to 1.910-2.310 EPS.

Applied Materials Price Performance

NASDAQ AMAT opened at $188.24 on Friday. Applied Materials has a one year low of $123.74 and a one year high of $215.70. The stock has a 50-day moving average of $184.28 and a 200 day moving average of $166.78. The company has a market capitalization of $151.06 billion, a price-to-earnings ratio of 22.90, a PEG ratio of 2.12 and a beta of 1.70. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.76 and a current ratio of 2.46.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's payout ratio is currently 22.38%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on AMAT. Raymond James Financial reaffirmed an "outperform" rating and issued a $200.00 price target (down previously from $225.00) on shares of Applied Materials in a research note on Friday, May 16th. JPMorgan Chase & Co. dropped their price target on Applied Materials from $240.00 to $210.00 and set an "overweight" rating for the company in a research note on Friday, May 16th. Barclays raised their price target on Applied Materials from $160.00 to $170.00 and gave the stock an "equal weight" rating in a research note on Monday, July 28th. Rothschild & Co Redburn lowered Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 price objective for the company. in a research report on Monday, July 7th. Finally, Stifel Nicolaus set a $195.00 price objective on Applied Materials in a research report on Wednesday. Nine analysts have rated the stock with a hold rating and seventeen have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $204.09.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 562 shares of Applied Materials stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the sale, the chief accounting officer directly owned 5,300 shares in the company, valued at approximately $946,580. This trade represents a 9.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently bought and sold shares of AMAT. Brighton Jones LLC increased its holdings in Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after buying an additional 2,771 shares in the last quarter. Sei Investments Co. grew its stake in shares of Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock valued at $77,383,000 after purchasing an additional 157,426 shares during the period. Diversify Advisory Services LLC grew its stake in shares of Applied Materials by 13.0% during the 2nd quarter. Diversify Advisory Services LLC now owns 4,320 shares of the manufacturing equipment provider's stock valued at $814,000 after purchasing an additional 498 shares during the period. Darwin Wealth Management LLC bought a new stake in shares of Applied Materials during the 2nd quarter valued at about $315,000. Finally, Raymond James Financial Inc. grew its stake in shares of Applied Materials by 1.2% during the 2nd quarter. Raymond James Financial Inc. now owns 1,204,263 shares of the manufacturing equipment provider's stock valued at $220,464,000 after purchasing an additional 13,762 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Applied Materials Company Profile

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.