Applied Materials (NASDAQ:AMAT) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Applied Materials (NASDAQ:AMAT) issued its quarterly earnings results on Thursday. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18, Zacks reports. The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The company’s revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the company posted $2.39 EPS. Applied Materials updated its Q3 2026 guidance to 3.160-3.560 EPS.

Here are the key takeaways from Applied Materials’ conference call:

• Applied Materials reported record Q2 fiscal 2026 revenue and earnings, with revenue of $7.91 billion and non-GAAP EPS of $2.86, while gross margin reached a more-than-25-year high of 50%.
• Management said AI demand is accelerating and diversifying, and now expects the semiconductor equipment business to grow more than 30% in calendar 2026, with strong visibility extending into 2027 and beyond.
• The company highlighted strong leadership in the highest-growth areas of the market, especially leading-edge foundry logic, DRAM, and advanced packaging, which it expects to account for more than 80% of WFE spending growth in 2026 and a similar mix in 2027.
• Applied raised its outlook for Applied Global Services, saying the business should grow at a mid-teens annual rate over time and potentially higher this year as installed base growth, higher utilization, and AI-enabled service tools lift demand.
• Q3 guidance was strong, with company revenue expected at $8.95 billion and non-GAAP EPS at $3.36, both implying significant year-over-year growth and continued margin expansion.

Applied Materials Stock Performance

Shares of NASDAQ AMAT opened at $440.56 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The company has a market cap of $349.63 billion, a P/E 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 is $377.52 and its two-hundred day moving average is $318.62. Applied Materials has a 52-week low of $153.47 and a 52-week high of $448.45.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, May 21st. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is 18.83%.

Applied Materials News Summary

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Citigroup lifted their price target on shares of Applied Materials from $420.00 to $520.00 and gave the stock a “buy” rating in a research note on Tuesday. Wells Fargo & Company restated an “overweight” rating on shares of Applied Materials in a research report on Friday. Royal Bank Of Canada restated an “outperform” rating and set a $500.00 price objective on shares of Applied Materials in a research report on Tuesday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $450.00 price objective on shares of Applied Materials in a research report on Friday, February 13th. Finally, Cantor Fitzgerald raised their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an “overweight” rating in a research report on Monday. Twenty-eight investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $396.17.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the sale, the chief accounting officer directly owned 4,625 shares in the company, valued at approximately $1,753,615. The trade was a 10.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the completion of the sale, the chief financial officer 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. In the last ninety days, insiders have sold 12,003 shares of company stock worth $4,484,189. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of hedge funds have recently made changes to their positions in AMAT. Brighton Jones LLC lifted its position in shares of Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after buying an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock worth $590,000 after buying an additional 679 shares in the last quarter. Forefront Wealth Partners LLC bought a new stake in shares of Applied Materials in the 2nd quarter worth about $410,000. Schnieders Capital Management LLC. increased its holdings in shares of Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after buying an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. increased its holdings in shares of Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after buying an additional 157,426 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.