FY2026 Earnings Forecast for AMAT Issued By Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Applied Materials to $12.23 from $12.20 and kept a Buy rating on the stock. It also projected FY2027 earnings of $16.51 per share.
• Applied Materials has seen broadly bullish analyst sentiment, with multiple firms recently lifting price targets. The stock now carries a consensus Moderate Buy rating and an average target price of $541.06.
• The company’s latest quarter beat expectations, posting $2.86 EPS on $7.91 billion in revenue, and it guided Q3 2026 EPS to $3.16-$3.56. That strong operating performance, along with optimism around semiconductor and AI-related demand, has helped support the stock’s rally.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Analysts at Erste Group Bank lifted their FY2026 earnings estimates for shares of Applied Materials in a research note issued to investors on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now forecasts that the manufacturing equipment provider will post earnings per share of $12.23 for the year, up from their previous estimate of $12.20. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $12.10 per share. Erste Group Bank also issued estimates for Applied Materials' FY2027 earnings at $16.51 EPS.

A number of other analysts have also recently issued reports on AMAT. Needham & Company LLC increased their price objective on Applied Materials from $440.00 to $530.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Argus lifted their target price on Applied Materials from $420.00 to $500.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Wolfe Research upped their price target on Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research report on Friday, May 15th. Citigroup increased their price target on shares of Applied Materials from $550.00 to $710.00 and gave the stock a "buy" rating in a report on Wednesday, June 17th. Finally, Wall Street Zen upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, Applied Materials has an average rating of "Moderate Buy" and a consensus target price of $541.06.

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $694.64 on Tuesday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials has a fifty-two week low of $154.46 and a fifty-two week high of $708.99. The stock has a market cap of $551.52 billion, a PE ratio of 65.22, a price-to-earnings-growth ratio of 1.74 and a beta of 1.67. The stock has a fifty day moving average of $479.64 and a 200-day moving average of $381.14.

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

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's payout ratio is presently 19.91%.

Insiders Place Their Bets

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction dated 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 sale, the insider owned 356,642 shares of the company's stock, valued at $180,204,069.76. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 199,767 shares of company stock worth $114,104,709. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of AMAT. Basecamp Wealth Advisors LLC raised its holdings in Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock valued at $1,124,000 after buying an additional 22 shares during the period. Private Wealth Management Group LLC boosted its stake in Applied Materials by 4.9% during the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider's stock worth $181,000 after buying an additional 25 shares during the period. One Day In July LLC increased its position in Applied Materials by 2.4% during the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider's stock valued at $372,000 after acquiring an additional 26 shares during the last quarter. Pinnacle Bancorp Inc. increased its position in Applied Materials by 1.3% during the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider's stock valued at $712,000 after acquiring an additional 27 shares during the last quarter. Finally, Horst & Graben Wealth Management LLC raised its stake in shares of Applied Materials by 2.1% in the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider's stock valued at $446,000 after acquiring an additional 27 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: KeyBanc, Cantor Fitzgerald, and Bank of America all raised price targets on Applied Materials, signaling strong analyst confidence ahead of earnings and helping fuel the stock’s advance. Why Is Applied Materials Stock Gaining Tuesday?
• Positive Sentiment: The stock is getting an added boost from strength in semiconductor equipment shares and AI infrastructure spending optimism, which investors see as a long-term growth driver for AMAT. Applied Materials (AMAT) Remains Favored as ASML Emerges as Top Catch-Up Trade
• Positive Sentiment: Applied Materials’ addition to the Russell Top 50 Index may increase institutional ownership and trading demand, adding another tailwind for the stock. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes
• Neutral Sentiment: Some commentary warns that expectations are now high going into earnings, which could create volatility if results or guidance fall short. This Analyst Sees 20% Upside For AMAT Stock – Says High Expectations Around Applied Materials’ Businesses Create Short-Term Risk

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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