FY2027 EPS Estimates for AMAT Increased by Erste Group Bank

Key Points

• Erste Group Bank raised Applied Materials’ FY2027 EPS estimate to $17.13 from $17.02, while maintaining a “Hold” rating. Analysts overall remain more positive, with the stock carrying a “Moderate Buy” consensus rating and a $603.23 average target price.
• Applied Materials beat quarterly expectations with EPS of $2.86 versus $2.68 and revenue of $7.91 billion versus $7.68 billion; revenue increased 11.4% year over year. The company issued Q3 2026 EPS guidance of $3.16–$3.56.
• Shares opened at $539.14, implying a market capitalization of about $428.1 billion and a P/E ratio of 50.62. The company declared a quarterly dividend of $0.53, while insiders sold approximately $169.7 million worth of stock during the latest quarter.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Equities researchers at Erste Group Bank upped their FY2027 EPS estimates for Applied Materials in a report issued on Wednesday, August 5th. Erste Group Bank analyst S. Lingnau now anticipates that the manufacturing equipment provider will post earnings per share of $17.13 for the year, up from their prior estimate of $17.02. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Applied Materials' current full-year earnings is $12.17 per share.

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 for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the previous year, the firm posted $2.39 EPS. Applied Materials's revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS.

Several other equities analysts also recently weighed in on the company. HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday, June 29th. Seaport Research Partners began coverage on Applied Materials in a report on Monday, May 4th. They issued a "buy" rating and a $500.00 price target for the company. Wolfe Research upped their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. The Goldman Sachs Group reissued a "buy" rating and issued a $645.00 target price on shares of Applied Materials in a research report on Monday, August 3rd. Finally, Truist Financial set a $575.00 target price on shares of Applied Materials in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $603.23.

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $539.14 on Monday. The company has a market cap of $428.06 billion, a P/E ratio of 50.62, a P/E/G ratio of 1.37 and a beta of 1.61. 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 has a 52 week low of $154.46 and a 52 week high of $739.67. The business has a fifty day simple moving average of $559.47 and a 200-day simple moving average of $438.49.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is 19.91%.

Insider Buying and Selling

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

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently made changes to their positions in AMAT. JFS Wealth Advisors LLC increased its holdings in shares of Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after buying an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC grew its stake in shares of Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock valued at $695,000 after buying an additional 20 shares in the last quarter. Stonebridge Financial Group LLC grew its position in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock valued at $725,000 after acquiring an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC grew its position in Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock valued at $273,000 after acquiring an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. raised its stake in shares of Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock valued at $132,000 after purchasing an additional 21 shares during the period. 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: Analysts remain broadly optimistic about AMAT, with consensus price targets implying additional upside. Citi reportedly identified Applied Materials as a top semiconductor pick following the sector’s selloff, while other coverage highlights the company’s strong position in deposition, etch, inspection and wafer-processing equipment. Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?
• Positive Sentiment: AI infrastructure spending is supporting the outlook for semiconductor manufacturing equipment. A potential Tesla-SpaceX “Terafab” buildout, along with rising demand for AI chips, advanced packaging and memory, could create additional opportunities for Applied Materials. Tesla-SpaceX Terafab Bet
• Positive Sentiment: Expectations for the August 13 report are favorable: analysts anticipate earnings growth and a potential beat. Applied Materials’ previous quarter exceeded consensus on both earnings and revenue, with revenue up 11.4% year over year, providing a constructive comparison for the upcoming release. Applied Materials Reports Next Week
• Neutral Sentiment: Options markets are pricing a potentially large earnings move, reportedly around 11%. That highlights significant event risk: a strong report and outlook could extend the rally, but merely meeting high expectations may not be enough. Options Market and AMAT’s Earnings Move
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold. The downgrade adds pressure after the stock’s strong rebound and reinforces concerns that substantial AI optimism is already reflected in the valuation. Applied Materials Rating Lowered to Hold
• Negative Sentiment: Investor Michael Burry’s disclosed short positions in AI-linked semiconductor names, including Applied Materials, have revived concerns about an AI-stock reversal and heightened volatility. As Burry Targets AI Chip Names

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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