Applied Materials (NASDAQ:AMAT) Releases Q2 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.440-2.840 for the period, compared to the consensus earnings per share estimate of 2.290. The company issued revenue guidance of $7.2 billion-$8.2 billion, compared to the consensus revenue estimate of $7.0 billion.

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of recent research reports. Weiss Ratings raised shares of Applied Materials from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on Applied Materials from $220.00 to $260.00 and gave the company an “overweight” rating in a research note on Friday, November 14th. Evercore reaffirmed an “outperform” rating and issued a $290.00 price objective on shares of Applied Materials in a report on Friday, November 14th. Citigroup upped their target price on Applied Materials from $250.00 to $400.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. Finally, DZ Bank upgraded Applied Materials from a “strong sell” rating to a “hold” rating in a research report on Friday, November 14th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus target price of $354.14.

Applied Materials Price Performance

Shares of Applied Materials stock traded up $29.59 during midday trading on Friday, hitting $357.98. 8,761,909 shares of the company traded hands, compared to its average volume of 8,209,924. The stock has a market cap of $284.13 billion, a price-to-earnings ratio of 41.24, a PEG ratio of 3.02 and a beta of 1.70. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The firm’s fifty day moving average price is $293.46 and its 200-day moving average price is $235.24. Applied Materials has a 12 month low of $123.74 and a 12 month high of $376.32.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.19 by $0.19. The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The company’s revenue for the quarter was down 2.1% compared to the same quarter last year. During the same period in the prior year, the business earned $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, sell-side analysts forecast that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, February 19th. Applied Materials’s payout ratio is 21.20%.

Insider Activity

In other news, SVP Teri A. Little sold 4,000 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the transaction, the senior vice president directly owned 84,351 shares in the company, valued at $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Adam Sanders sold 609 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the sale, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. The trade was a 12.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 8,609 shares of company stock valued at $2,044,898. Insiders own 0.30% of the company’s stock.

Applied Materials News Roundup

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

• Positive Sentiment: Q1 results topped estimates and guidance was well above consensus — EPS of $2.38 beat expectations and management guided Q2 EPS and revenue above Street models, signaling accelerating demand for tools and services. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Bullish outlook tied to AI-driven equipment orders — management and market reports cite surging demand for AI processors and a tightening memory market as reasons orders for Applied’s chipmaking tools should remain strong. That narrative is the primary growth thesis behind the rally. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and higher price targets followed the print — several firms raised targets and reiterated Buy/outperform calls after the beat and strong guide, adding dealer and institutional momentum. B. Riley Raises Applied Materials Price Target
• Neutral Sentiment: Regulatory overhang resolved — Applied reached a settlement with the U.S. Department of Commerce related to past export compliance questions; DOJ and SEC investigations were closed without action, removing a headline risk even though the company agreed to pay. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: One-time cash cost and modest top-line softness — the settlement carries a ~$252.5M charge and the quarter showed a slight year-over-year revenue decline (~2%), which are offsets to the positive setup and will modestly weigh on near-term free cash flow and margins. Applied Materials to pay $252 million to resolve illegal chip exports, US says

Institutional Trading of Applied Materials

A number of institutional investors have recently bought and sold shares of AMAT. Hoxton Planning & Management LLC grew its holdings in Applied Materials by 1.4% during the 4th quarter. Hoxton Planning & Management LLC now owns 2,208 shares of the manufacturing equipment provider’s stock worth $567,000 after acquiring an additional 31 shares during the period. GW&K Investment Management LLC grew its stake in Applied Materials by 3.9% during the fourth quarter. GW&K Investment Management LLC now owns 897 shares of the manufacturing equipment provider’s stock worth $231,000 after purchasing an additional 34 shares during the period. Sumitomo Life Insurance Co. increased its holdings in Applied Materials by 0.7% in the fourth quarter. Sumitomo Life Insurance Co. now owns 5,761 shares of the manufacturing equipment provider’s stock worth $1,481,000 after purchasing an additional 38 shares in the last quarter. QTR Family Wealth LLC boosted its holdings in shares of Applied Materials by 2.7% during the 4th quarter. QTR Family Wealth LLC now owns 1,573 shares of the manufacturing equipment provider’s stock worth $404,000 after buying an additional 41 shares in the last quarter. Finally, Mission Creek Capital Partners Inc. grew its position in shares of Applied Materials by 0.6% during the 4th quarter. Mission Creek Capital Partners Inc. now owns 9,350 shares of the manufacturing equipment provider’s stock worth $2,403,000 after buying an additional 52 shares during the period. Institutional investors own 80.56% of the company’s stock.

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.