FY2026 Earnings Estimate for AMAT Issued By Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Applied Materials to $12.29 from $12.23 and kept a Buy rating on the stock. The new estimate is slightly above the current consensus of $12.13 per share, and the firm also projected FY2027 EPS of $17.02.
• Applied Materials recently beat Wall Street’s quarterly expectations, posting $2.86 EPS on $7.91 billion in revenue versus estimates of $2.68 and $7.68 billion, respectively. The company also guided Q3 2026 EPS to a range of $3.16 to $3.56.
• Analyst sentiment remains broadly positive, with multiple firms lifting price targets and MarketBeat data showing a Moderate Buy consensus and an average target price of $593.84. However, the stock’s strong rally has also drawn valuation concerns, as it trades near $560.93 with a high P/E of 52.67.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Investment analysts at Erste Group Bank increased their FY2026 earnings estimates for shares of Applied Materials in a note issued to investors on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now forecasts that the manufacturing equipment provider will post earnings per share of $12.29 for the year, up from their previous estimate of $12.23. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $12.13 per share. Erste Group Bank also issued estimates for Applied Materials' FY2027 earnings at $17.02 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business's revenue was up 11.4% compared to the same quarter last year. During the same period in the previous year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS.

A number of other brokerages also recently issued reports on AMAT. Morgan Stanley increased their target price on Applied Materials from $502.00 to $647.00 and gave the stock an "equal weight" rating in a research note on Monday, July 6th. Weiss Ratings reissued a "buy (b-)" rating on shares of Applied Materials in a report on Wednesday, June 24th. Barclays upped their price target on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a research note on Thursday, June 11th. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a report on Wednesday, June 10th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $525.00 target price on shares of Applied Materials in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Applied Materials presently has an average rating of "Moderate Buy" and an average target price of $593.84.

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $560.93 on Friday. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67. The company has a 50-day moving average price of $531.23 and a 200 day moving average price of $412.23. The company has a market cap of $445.36 billion, a P/E ratio of 52.67, a PEG ratio of 1.47 and a beta of 1.57. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials Dividend Announcement

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

Insiders Place Their Bets

In other news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 278,088 shares of company stock valued at $169,654,805. Corporate insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently bought and sold shares of the stock. Cornerstone Financial Management LLC purchased a new stake in Applied Materials during the 4th quarter worth about $25,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the 4th quarter valued at about $26,000. Financial Freedom LLC purchased a new position in Applied Materials in the 1st quarter valued at about $28,000. Highline Wealth Partners LLC boosted its stake in shares of Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after purchasing an additional 38 shares during the last quarter. Finally, Joseph Group Capital Management acquired a new stake in shares of Applied Materials during the 4th quarter worth about $31,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

More Applied Materials News

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

• Positive Sentiment: Applied Materials continues to benefit from AI-driven semiconductor spending, and management recently reinforced the view that this investment cycle could stay elevated for years, supporting a multiyear growth outlook. Article Title
• Positive Sentiment: Analysts still see meaningful EPS growth ahead, with recent commentary highlighting strong demand trends and a higher price target from Mizuho, which can help sustain investor confidence in AMAT. Article Title
• Neutral Sentiment: Coverage around AMAT’s valuation is becoming more cautious, with one report saying the stock appears to be trading above fair value even though earnings look roughly reasonable, suggesting limited upside from current levels. Article Title
• Neutral Sentiment: Despite the strong recent rally, some commentary frames Applied Materials as a long-term AI infrastructure winner, but also notes that new buyers are paying up after a very large five-year advance. Article Title
• Negative Sentiment: Valuation concerns are the main drag on sentiment today: investors may be questioning whether Applied Materials’ strong AI demand story is already fully priced into the shares after the recent surge. Article Title

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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