Applied Materials (NASDAQ:AMAT) Releases Q1 2027 Earnings Guidance

Key Points

• Applied Materials forecast Q1 2027 EPS of $4.15–$4.55 and revenue of $10.6–$11.6 billion, compared with analyst consensus of $4.20 EPS and $10.7 billion in revenue.
• In its latest reported quarter, the company beat estimates with EPS of $4.16 versus $4.06 expected and revenue of $10.41 billion versus $10.30 billion expected.
• Shares fell 3.6% on Thursday to $380.95. Applied Materials also declared a quarterly dividend of $0.53 per share, equivalent to a 0.6% annual yield.

Applied Materials (NASDAQ:AMAT - Get Free Report) issued an update on its first quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.150-4.550 for the period, compared to the consensus estimate of 4.200. The company issued revenue guidance of $10.6 billion-$11.6 billion, compared to the consensus revenue estimate of $10.7 billion.

Applied Materials Stock Down 3.6%

Shares of NASDAQ:AMAT traded down $14.13 during trading on Thursday, hitting $380.95. The company's stock had a trading volume of 8,306,873 shares, compared to its average volume of 7,915,605. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. Applied Materials has a fifty-two week low of $203.40 and a fifty-two week high of $739.67. The stock's 50-day moving average price is $440.37 and its two-hundred day moving average price is $445.52. The company has a market capitalization of $302.32 billion, a PE ratio of 32.84, a PEG ratio of 0.73 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share for the quarter, topping analysts' consensus estimates of $4.06 by $0.10. The business had revenue of $10.41 billion during the quarter, compared to the consensus estimate of $10.30 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, sell-side analysts expect that Applied Materials will post 12.79 EPS for the current year.

Applied Materials Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.53 per share. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.6%. Applied Materials's dividend payout ratio is presently 18.28%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AMAT. Sanford C. Bernstein lifted their target price on Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Morgan Stanley reduced their price objective on Applied Materials from $563.00 to $538.00 and set an "equal weight" rating on the stock in a research note on Tuesday, November 3rd. New Street Research decreased their price objective on shares of Applied Materials from $580.00 to $525.00 and set a "neutral" rating for the company in a report on Friday, August 14th. Berenberg Bank boosted their target price on shares of Applied Materials from $575.00 to $675.00 and gave the company a "buy" rating in a research note on Monday, August 17th. Finally, Citigroup restated a "buy" rating and issued a $710.00 price target (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $625.76.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 725 shares of the company's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company's stock, valued at $1,732,245.36. This represents a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares of the company's stock, valued at $61,637,780.25. This represents a 5.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 9,225 shares of company stock worth $4,454,181 over the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Recent Applied Materials Headlines

Here are a few of the latest headlines about AMAT:

• Neutral Sentiment: Analysts reportedly expect about $4.06 in Q4 EPS and $10.3 billion in revenue. Investors will focus on results versus those expectations, as well as DRAM and foundry demand and management’s fiscal 2027 outlook. Analyst forecasts ahead of earnings
• Neutral Sentiment: Options traders are positioning for a potentially large post-earnings move, signaling heightened volatility rather than a clear direction. Options traders expect a major move
• Negative Sentiment: AMAT has fallen sharply over the past month and remains well below its high. The broader chip-equipment selloff, Nvidia-related tech pressure, and concerns about China demand and AI-order strength have weighed on sentiment; analysts have also trimmed some price targets and fair-value estimates. What Applied Materials’ earnings need to prove

Applied Materials Company Profile

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company's offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.

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