Q4 EPS Forecast for Applied Materials Lowered by Analyst

Key Points

• William Blair has reduced its Q4 2025 earnings per share estimate for Applied Materials from $2.40 to $2.11, reflecting a more pessimistic outlook.
• Despite this downgrade, Applied Materials recently reported $2.48 earnings per share for its last quarter, exceeding analysts' expectations of $2.36.
• The manufacturing equipment provider has seen a reduction in price targets from various analysts, with Deutsche Bank lowering its target from $200.00 to $170.00.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Equities research analysts at William Blair dropped their Q4 2025 earnings per share (EPS) estimates for Applied Materials in a research note issued on Friday, August 15th. William Blair analyst J. Dorsheimer now forecasts that the manufacturing equipment provider will post earnings of $2.11 per share for the quarter, down from their previous estimate of $2.40. The consensus estimate for Applied Materials' current full-year earnings is $9.38 per share. William Blair also issued estimates for Applied Materials' Q4 2026 earnings at $2.34 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, topping analysts' consensus estimates of $2.36 by $0.12. The firm had revenue of $7.30 billion for the quarter, compared to the consensus estimate of $7.21 billion. Applied Materials had a return on equity of 41.31% and a net margin of 23.88%.The business's revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.12 earnings per share. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS.

A number of other equities analysts also recently weighed in on the company. B. Riley lowered their price target on Applied Materials from $250.00 to $215.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Redburn Atlantic downgraded Applied Materials from a "strong-buy" rating to a "hold" rating and decreased their target price for the company from $225.00 to $200.00 in a research report on Monday, July 7th. Morgan Stanley upped their target price on Applied Materials from $169.00 to $172.00 and gave the company an "equal weight" rating in a research report on Friday. Stifel Nicolaus decreased their target price on Applied Materials from $195.00 to $180.00 and set a "buy" rating on the stock in a research report on Friday. Finally, Summit Insights downgraded Applied Materials from a "buy" rating to a "hold" rating in a research report on Friday. Seventeen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $194.84.

Applied Materials Stock Performance

NASDAQ AMAT traded down $1.31 during trading on Monday, reaching $162.22. 8,827,987 shares of the company's stock were exchanged, compared to its average volume of 7,426,590. The business has a 50 day moving average price of $184.06 and a 200-day moving average price of $166.42. The stock has a market capitalization of $130.18 billion, a P/E ratio of 19.33, a PEG ratio of 1.81 and a beta of 1.70. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.46 and a quick ratio of 1.76. Applied Materials has a fifty-two week low of $123.74 and a fifty-two week high of $215.70.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Runnymede Capital Advisors Inc. grew its holdings in Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after acquiring an additional 175 shares during the period. Smallwood Wealth Investment Management LLC acquired a new stake in shares of Applied Materials in the 1st quarter valued at about $29,000. Maseco LLP acquired a new stake in shares of Applied Materials in the 2nd quarter valued at about $30,000. Clal Insurance Enterprises Holdings Ltd grew its stake in shares of Applied Materials by 435.0% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after buying an additional 174 shares during the period. Finally, Activest Wealth Management grew its stake in shares of Applied Materials by 5,325.0% in the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock valued at $31,000 after buying an additional 213 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Insider Activity at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of the stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the transaction, the chief accounting officer directly owned 5,300 shares in the company, valued at approximately $946,580. This represents a 9.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.24% of the company's stock.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, August 21st. This represents a $1.84 annualized dividend and a yield of 1.1%. Applied Materials's dividend payout ratio is presently 21.93%.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.