Applied Materials (NASDAQ:AMAT) Announces Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Applied Materials beat quarterly estimates: It reported EPS of $4.16, $0.10 above consensus, and revenue of $10.41 billion versus the $10.30 billion estimate.
• The company guided to Q1 2027 EPS of $4.15–$4.55 and announced a quarterly dividend of $0.53 per share.
• Shares fell $14.13 to $380.95 during Thursday trading. Analysts’ consensus rating was “Moderate Buy,” with a consensus price target of $625.76.

Applied Materials (NASDAQ:AMAT - Get Free Report) announced its earnings results on Thursday. The manufacturing equipment provider reported $4.16 earnings per share for the quarter, beating the consensus estimate of $4.06 by $0.10, FiscalAI reports. The firm had revenue of $10.41 billion during the quarter, compared to the consensus estimate of $10.30 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. Applied Materials updated its Q1 2027 guidance to 4.150-4.550 EPS.

Applied Materials Stock Performance

Shares of NASDAQ AMAT traded down $14.13 during mid-day trading on Thursday, reaching $380.95. 8,823,915 shares of the company were exchanged, compared to its average volume of 7,928,103. Applied Materials has a twelve month low of $203.40 and a twelve month high of $739.67. The stock has a market capitalization of $302.32 billion, a P/E ratio of 32.84, a P/E/G ratio of 0.73 and a beta of 1.67. The company's 50-day simple moving average is $440.37 and its 200-day simple moving average is $445.52. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials Announces Dividend

The business also recently announced 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. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Thursday, November 19th. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AMAT. Craig Hallum boosted their price target on Applied Materials from $530.00 to $585.00 and gave the company a "buy" rating in a research note on Friday, August 14th. Argus set a $600.00 price target on shares of Applied Materials and gave the stock a "buy" rating in a research report on Tuesday, August 18th. Erste Group Bank downgraded shares of Applied Materials from a "buy" rating to a "hold" rating in a research report on Wednesday, August 5th. Evercore set a $590.00 target price on Applied Materials in a research note on Thursday, October 15th. Finally, The Goldman Sachs Group lifted their target price on Applied Materials from $645.00 to $670.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Thirty equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $625.76.

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of the business's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company's stock, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is currently owned by corporate insiders.

Applied Materials News Roundup

These are some of the AMAT news items that stood out recently:

• Positive Sentiment: HSBC reaffirmed its Buy rating ahead of earnings, pointing to potential upside after the recent selloff. HSBC says buy the dip
• Neutral Sentiment: Options traders are positioning for a potentially large post-earnings move, signaling heightened volatility rather than a clear direction. Options traders expect a major move
• Negative Sentiment: AMAT has fallen sharply over the past month and remains well below its high. The broader chip-equipment selloff, Nvidia-related tech pressure, and concerns about China demand and AI-order strength have weighed on sentiment; analysts have also trimmed some price targets and fair-value estimates. What Applied Materials’ earnings need to prove

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.

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