FY2027 EPS Estimate for Applied Materials Lifted by Analyst

Key Points

• Erste Group raised its FY2027 EPS estimate for Applied Materials to $14.07 (from $14.00) and kept a "Buy" rating, contributing to broad analyst upside that leaves the stock with a "Moderate Buy" consensus and a $375.90 average target.
• Applied Materials beat quarterly expectations with $2.38 EPS (vs. $2.21 est.) on $7.01B revenue, provided Q2 2026 guidance of $2.44–$2.84 EPS, and recently raised its quarterly dividend to $0.53 (annualized $2.12).
• The company is expanding its AI chipmaking footprint by agreeing to buy ASMPT's NEXX panel-level packaging business, and bullish signals such as a $500 street-high price target from Seaport Research support near-term optimism despite some insider selling and short-term profit-taking.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Investment analysts at Erste Group Bank boosted their FY2027 EPS estimates for Applied Materials in a report issued on Tuesday, May 5th. Erste Group Bank analyst S. Lingnau now anticipates that the manufacturing equipment provider will earn $14.07 per share for the year, up from their previous estimate of $14.00. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $11.14 per share.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data 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. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.88 billion. During the same quarter in the previous year, the firm earned $2.38 earnings per share. Applied Materials's revenue was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS.

Other equities analysts have also issued reports about the company. Bank of America increased their price objective on Applied Materials from $300.00 to $350.00 and gave the company a "buy" rating in a research report on Tuesday, January 13th. Barclays raised their price objective on Applied Materials from $360.00 to $450.00 and gave the company an "overweight" rating in a research note on Friday, February 13th. DZ Bank raised shares of Applied Materials to a "hold" rating in a research report on Monday, February 16th. Needham & Company LLC lifted their price objective on Applied Materials from $390.00 to $440.00 and gave the stock a "buy" rating in a report on Friday, February 13th. Finally, Stifel Nicolaus upped their target price on shares of Applied Materials from $340.00 to $450.00 and gave the company a "buy" rating in a research note on Friday, February 13th. Twenty-eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $375.90.

Applied Materials Trading Up 4.3%

NASDAQ AMAT opened at $428.36 on Friday. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The stock's 50-day simple moving average is $371.10 and its two-hundred day simple moving average is $311.19. Applied Materials has a twelve month low of $153.47 and a twelve month high of $432.81. The company has a market capitalization of $339.95 billion, a price-to-earnings ratio of 43.65, a PEG ratio of 1.90 and a beta of 1.66.

Applied Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 annualized dividend and a yield of 0.5%. This is an increase from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's payout ratio is currently 21.70%.

Insider Activity

In other news, CAO Adam Sanders sold 534 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the business'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 value of $1,806,050.00. Following the completion of the transaction, the chief financial officer directly owned 138,565 shares in the company, valued at approximately $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,003 shares of company stock worth $4,484,189 over the last ninety days. Corporate insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Institutional investors and hedge funds have recently modified their holdings of the business. Financial Freedom LLC purchased a new stake in shares of Applied Materials in the 1st quarter worth $28,000. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth $25,000. Whipplewood Advisors LLC grew its stake in Applied Materials by 218.8% in the first quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock valued at $35,000 after purchasing an additional 70 shares during the last quarter. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the fourth quarter valued at about $26,000. Finally, MBM Wealth Consultants LLC bought a new position in Applied Materials in the first quarter worth about $38,000. 80.56% of the stock is owned by institutional investors.

Applied Materials News Roundup

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

• Positive Sentiment: Seaport Research set a new street-high $500 price target and called AMAT essentially “irreplaceable” in the AI semiconductor buildout — an influential bullish signal that supports higher valuation expectations. Applied Materials Stock Just Got a New Street-High Price Target: AMAT’s Role in AI Is Almost ‘Irreplaceable’
• Positive Sentiment: Applied agreed to buy the NEXX business from ASMPT, adding panel-level advanced packaging tools that directly address AI chipmaking demand — a strategic tuck-in likely to boost addressable market and near-term product breadth. Applied Materials Expands AI Packaging With NEXX Deal As Stock Surges
• Positive Sentiment: Erste Group raised its FY2027 EPS forecast for AMAT to $14.07 (from $14.00) and maintains a Buy — incremental analyst upward revisions bolster earnings expectations versus consensus.
• Positive Sentiment: Other broker actions (including a Morgan Stanley pre-earnings upgrade / higher targets referenced in the press) add to the near-term bullish analyst momentum. Morgan Stanley upgrades Applied Materials stock price target pre-earnings
• Positive Sentiment: Technically, AMAT recently cleared its 20-day moving average — a short-term bullish sign that can attract momentum traders. Applied Materials (AMAT) Just Overtook the 20-Day Moving Average
• Neutral Sentiment: Daily analyst research roundups and pre-market commentary highlight broad sector strength (AI-driven capex for semiconductors) but are informational rather than catalyst-specific. Here Are Friday’s Top Wall Street Analyst Research Calls...
• Negative Sentiment: Despite bullish news, AMAT experienced a recent pullback — articles note a ~3.9% drop on a trading day as investors took profits after a strong YTD rally; that short-term selling pressure can weigh on the stock while the market digests upgrades and M&A. Here's Why Applied Materials (AMAT) Fell More Than Broader Market

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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