FY2026 EPS Forecast for Applied Materials Raised by Analyst

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Applied Materials to $11.12 from $11.08 and kept a Buy rating on the stock. Its FY2027 EPS estimate is now $14.17, slightly below the current consensus FY2026 estimate of $11.16.
• Applied Materials reported strong quarterly results, with EPS of $2.86 beating estimates and revenue of $7.91 billion topping forecasts. The company also said Q3 2026 EPS should come in between $3.16 and $3.56.
• Analyst sentiment remains broadly positive, with several firms lifting price targets and 28 analysts rating the stock a Buy versus 7 Hold ratings. Applied Materials also increased its quarterly dividend to $0.53 per share from $0.46.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Equities research analysts at Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for Applied Materials in a research note issued to investors on Tuesday, May 12th. Erste Group Bank analyst S. Lingnau now expects that the manufacturing equipment provider will post earnings of $11.12 per share for the year, up from their previous forecast of $11.08. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $11.16 per share. Erste Group Bank also issued estimates for Applied Materials' FY2027 earnings at $14.17 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same period in the prior year, the firm posted $2.39 EPS. Applied Materials's quarterly revenue 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.

AMAT has been the topic of a number of other reports. Citigroup raised their price target on shares of Applied Materials from $420.00 to $520.00 and gave the company a "buy" rating in a research report on Tuesday. Seaport Research Partners began coverage on shares of Applied Materials in a research report on Monday, May 4th. They issued a "buy" rating and a $500.00 price objective for the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Applied Materials in a research note on Friday, March 27th. UBS Group lifted their target price on shares of Applied Materials from $430.00 to $480.00 and gave the stock a "buy" rating in a research report on Monday, May 4th. Finally, Cantor Fitzgerald boosted their target price on Applied Materials from $500.00 to $550.00 and gave the stock an "overweight" rating in a research note on Monday. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $399.62.

Applied Materials Price Performance

AMAT opened at $440.56 on Friday. Applied Materials has a 1 year low of $153.47 and a 1 year high of $448.45. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. The company has a market capitalization of $349.63 billion, a price-to-earnings ratio of 45.09, a P/E/G ratio of 1.94 and a beta of 1.66. The firm's fifty day moving average price is $377.52 and its two-hundred day moving average price is $318.62.

Institutional Trading of Applied Materials

A number of large investors have recently bought and sold shares of AMAT. Vanguard Group Inc. increased its holdings in Applied Materials by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock worth $19,731,523,000 after acquiring an additional 330,197 shares during the last quarter. Capital Research Global Investors raised its stake in Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Ameriprise Financial Inc. lifted its holdings in Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock valued at $2,563,376,000 after purchasing an additional 3,583,751 shares during the last quarter. Morgan Stanley lifted its holdings in Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock valued at $2,947,891,000 after purchasing an additional 373,012 shares during the last quarter. Finally, Norges Bank bought a new position in Applied Materials during the fourth quarter worth about $2,858,543,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 3,969 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the completion of the transaction, the director directly owned 28,589 shares of the company's stock, valued at $10,778,624.78. This represents a 12.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Brice Hill sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer owned 138,565 shares of the company's stock, valued at approximately $50,051,063.65. The trade was a 3.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,003 shares of company stock worth $4,484,189 over the last three months. 0.30% of the stock is currently owned by insiders.

Applied Materials Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a $0.53 dividend. The ex-dividend date is Thursday, May 21st. This is a positive change from Applied Materials's previous quarterly dividend of $0.46. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. Applied Materials's dividend payout ratio is presently 18.83%.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials beat Q2 estimates, with EPS of $2.86 and revenue of $7.91 billion, both above Wall Street forecasts, reinforcing that demand for semiconductor equipment remains strong. Article Title
• Positive Sentiment: The company raised guidance for Q3, with revenue outlook above consensus, signaling management expects AI and data-center spending to keep fueling orders. Article Title
• Positive Sentiment: Multiple reports highlighted record or near-record margins, suggesting Applied Materials is benefiting from strong operating leverage as AI-related demand scales. Article Title
• Positive Sentiment: Analysts turned more constructive after the report, including a TD Cowen reaffirmation of Buy and a higher price target, which can support the shares. Article Title
• Neutral Sentiment: Several previews and earnings-call coverage focused on the same core theme: investors are watching whether AI spending can offset softer China demand and export restrictions. Article Title
• Negative Sentiment: Despite the strong results, some reports noted the stock traded lower in premarket, suggesting profit-taking or heightened expectations after a steep rally may be limiting immediate upside. Article Title

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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