Erste Group Bank Issues Optimistic Outlook for AMAT Earnings

Key Points

• Erste Group upgraded AMAT to a Buy and nudged FY2026 EPS to $11.08 (from $11.03) and FY2027 to $14.00, citing continued AI-driven semiconductor investment that supports demand for Applied’s tools.
• Applied Materials beat Q1 estimates with $2.38 EPS (vs. $2.21 expected) and $7.01B revenue (vs. $6.88B), provided Q2 2026 guidance of $2.440–$2.840, and raised its quarterly dividend to $0.53 ($2.12 annualized).
• Key near-term risks include U.S. export controls restricting shipments to China’s Hua Hong and recent sector volatility, even as many brokers raise price targets and the consensus rating remains a Moderate Buy (average target ~$368).

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Research analysts at Erste Group Bank increased their FY2026 earnings estimates for shares of Applied Materials in a report released on Monday, April 27th. Erste Group Bank analyst S. Lingnau now forecasts that the manufacturing equipment provider will post earnings per share of $11.08 for the year, up from their prior estimate of $11.03. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $11.10 per share. Erste Group Bank also issued estimates for Applied Materials' FY2027 earnings at $14.00 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. The firm had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.Applied Materials's revenue for the quarter was down 2.1% on a year-over-year basis. During the same period in the previous year, the company posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS.

A number of other research firms have also weighed in on AMAT. B. Riley Financial raised their price target on shares of Applied Materials from $450.00 to $485.00 and gave the company a "buy" rating in a report on Monday, April 13th. Barclays raised their price target on shares of Applied Materials from $360.00 to $450.00 and gave the company an "overweight" rating in a report on Friday, February 13th. TD Cowen raised their price target on shares of Applied Materials from $315.00 to $450.00 and gave the company a "buy" rating in a report on Friday, February 13th. Citigroup raised their price target on shares of Applied Materials from $400.00 to $420.00 and gave the company a "buy" rating in a report on Friday, February 13th. Finally, Zacks Research downgraded shares of Applied Materials from a "strong-buy" rating to a "hold" rating in a research note on Monday. Twenty-seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials currently has a consensus rating of "Moderate Buy" and an average price target of $368.29.

Applied Materials Stock Performance

Applied Materials stock opened at $381.17 on Wednesday. The stock's 50 day moving average price is $367.88 and its 200 day moving average price is $304.78. The firm has a market capitalization of $302.50 billion, a PE ratio of 39.01, a price-to-earnings-growth ratio of 1.81 and a beta of 1.64. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. Applied Materials has a one year low of $144.71 and a one year high of $420.50.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a $0.53 dividend. The ex-dividend date is Thursday, May 21st. This represents a $2.12 annualized dividend and a yield of 0.6%. This is a boost from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's payout ratio is 21.70%.

Insider Activity at Applied Materials

In related news, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total value of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares in the company, valued at $50,051,063.65. This trade represents a 3.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Judy Bruner sold 2,500 shares of Applied Materials stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $391.71, for a total transaction of $979,275.00. Following the completion of the sale, the director owned 26,089 shares in the company, valued at approximately $10,219,322.19. This represents a 8.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,003 shares of company stock worth $4,484,189 in the last ninety days. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently bought and sold shares of the stock. Cornerstone Financial Management LLC acquired a new position in Applied Materials during the 4th quarter valued at about $25,000. Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the 4th quarter valued at about $26,000. MBM Wealth Consultants LLC acquired a new position in Applied Materials during the 1st quarter valued at about $38,000. Highline Wealth Partners LLC increased its stake in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after buying an additional 38 shares during the period. Finally, Joseph Group Capital Management acquired a new position in Applied Materials during the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Key Applied Materials News

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

• Positive Sentiment: Erste Group upgraded AMAT to Buy and raised FY2026–FY2027 EPS forecasts (small lifts to $11.08 for FY26 and $14.00 for FY27), citing ongoing AI-driven semiconductor investment that supports demand for Applied’s tools. Erste Group Upgrades Applied Materials (AMAT) on AI-Driven Semiconductor Investment
• Positive Sentiment: B. Riley expressed bullishness on Applied Materials, pointing to an improving outlook for semiconductor capital spending — a tailwind if AI/advanced-node investment ramps as expected. B. Riley Bullish on Applied Materials (AMAT)
• Positive Sentiment: Strategic partnership: Advantest joined Applied’s EPIC platform and opened an Innovation Center at Applied’s R&D campus, strengthening AMAT’s ecosystem play across front‑end process and back‑end testing — a longer‑term positive for product stickiness and end‑market relevance. Is Advantest’s EPIC Tie-Up Reshaping the Long-Term Investment Case for Applied Materials (AMAT)?
• Neutral Sentiment: Several media pieces revisit broker recommendations and analyst commentary on AMAT (mixed views); these notes help sentiment but are incremental compared with the export‑control and AI capex headlines. Brokers Suggest Investing in Applied Materials (AMAT): Read This Before Placing a Bet
• Negative Sentiment: U.S. Commerce Department ordered Applied and other equipment suppliers to stop certain shipments to China’s Hua Hong, tightening export controls and directly pressuring AMAT’s China exposure and near-term international revenue. This is the largest immediate geopolitical/operational risk in recent coverage. US Export Curbs On Hua Hong Test Applied Materials China Exposure
• Negative Sentiment: Sector weakness: reports that OpenAI missed growth expectations triggered a broad semiconductor sell‑off, pulling AMAT lower along with peers as investors reprice near-term demand for chipmaking equipment. What Is Going On With Applied Materials Stock On Tuesday?
• Negative Sentiment: Zacks Research downgraded AMAT from “strong-buy” to “hold,” a modest negative to sentiment that may reduce near-term retail traction. Zacks.com

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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