Research Analysts Set Expectations for AMAT FY2026 Earnings

Key Points

• FY2026 earnings estimates were raised: Erste Group Bank increased its Applied Materials forecast to $12.76 per share from $12.29, matching the consensus estimate, while maintaining a “Hold” rating.
• Analyst sentiment remains broadly positive: AMAT has a “Moderate Buy” consensus rating, with 27 Buy, one Strong Buy and five Hold ratings; the average price target is $657.76.
• Recent operating results showed strong growth: Applied Materials reported quarterly EPS of $3.50 and revenue of $9.12 billion, exceeding estimates, with revenue up 24.8% year over year. The company also provided fourth-quarter EPS guidance of $3.82 to $4.22.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Research analysts at Erste Group Bank lifted their FY2026 earnings estimates for shares of Applied Materials in a research report issued to clients and investors on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now expects that the manufacturing equipment provider will earn $12.76 per share for the year, up from their previous forecast of $12.29. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $12.76 per share.

A number of other brokerages have also recently weighed in on AMAT. Sanford C. Bernstein boosted their price target on Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. The Goldman Sachs Group reissued a "buy" rating and issued a $645.00 price objective on shares of Applied Materials in a research note on Monday, August 3rd. Cantor Fitzgerald restated an "overweight" rating on shares of Applied Materials in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $605.00 target price on shares of Applied Materials in a research report on Friday, August 14th. Finally, William Blair assumed coverage on Applied Materials in a report on Tuesday, August 11th. They set a "market perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $657.76.

Applied Materials Stock Performance

Applied Materials stock opened at $461.67 on Monday. Applied Materials has a one year low of $154.46 and a one year high of $739.67. The company's fifty day moving average price is $550.80 and its two-hundred day moving average price is $457.65. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company has a market capitalization of $366.38 billion, a price-to-earnings ratio of 39.80, a PEG ratio of 0.99 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter last year, the firm earned $2.48 EPS. Applied Materials's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS.

Hedge Funds Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Cornerstone Financial Management LLC raised its stake in Applied Materials by 45.2% during the 2nd quarter. Cornerstone Financial Management LLC now owns 167 shares of the manufacturing equipment provider's stock valued at $121,000 after purchasing an additional 52 shares during the last quarter. HORAN Wealth LLC grew its position in Applied Materials by 95.6% in the 2nd quarter. HORAN Wealth LLC now owns 1,633 shares of the manufacturing equipment provider's stock worth $1,180,000 after purchasing an additional 798 shares during the last quarter. Amundi grew its position in Applied Materials by 19.0% in the 2nd quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider's stock worth $5,645,344,000 after purchasing an additional 1,246,876 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Applied Materials during the 2nd quarter worth about $124,981,000. Finally, Financial Insights Inc. increased its holdings in shares of Applied Materials by 5.6% during the 2nd quarter. Financial Insights Inc. now owns 1,536 shares of the manufacturing equipment provider's stock worth $1,111,000 after purchasing an additional 81 shares during the period. Institutional investors own 80.56% of the company's stock.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the transaction, the insider directly owned 356,642 shares of the company's stock, valued at $180,204,069.76. The trade was a 12.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total value of $42,587,906.25. Following the transaction, the chief executive officer owned 1,695,164 shares of the company's stock, valued at approximately $1,006,503,625. This trade represents a 4.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 284,192 shares of company stock worth $172,625,209 in the last ninety days. 0.30% of the stock is owned by insiders.

Applied Materials Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials's payout ratio is presently 18.28%.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Semiconductor and AI demand remains strong: Recent coverage highlights Applied Materials’ $9.12 billion third-quarter revenue, up 25% year over year, and non-GAAP EPS of $3.50, up 41%. Management cited record demand visibility from AI infrastructure, more than 10 new fab projects during the quarter and fourth-quarter revenue guidance of $10.25 billion. The company is also continuing share repurchases and investing $5 billion in its EPIC Center to accelerate semiconductor innovation. The AI Buildout Is Turning Applied Materials Into A Profit Machine
• Positive Sentiment: New board member adds semiconductor expertise: AMAT appointed Akash Palkhiwala, Qualcomm’s CFO and COO, to its board and Audit Committee. His finance, operations and industry experience could strengthen oversight as Applied Materials pursues growth tied to advanced logic, memory and AI chip production. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Neutral Sentiment: Options market signals elevated uncertainty: A new analysis says options pricing for roughly one year ahead implies a particularly wide potential trading range, extending materially below and above the current level. That suggests investors should expect significant volatility rather than providing a clear directional signal. How Far Applied Materials Stock Can Move In A Year
• Negative Sentiment: CFO share sale may weigh modestly on sentiment: CFO Brice Hill sold 7,500 AMAT shares for approximately $3.6 million, reducing his direct holdings by 5.51%. The sale does not alter the company’s operating outlook, but insider selling can create a limited short-term sentiment overhang. SEC Insider Transaction Filing

Applied Materials Company Profile

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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