Applied Materials (NASDAQ:AMAT) Issues Quarterly Earnings Results

Applied Materials (NASDAQ:AMAT) announced its quarterly earnings results on Thursday. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.17, Zacks reports. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The company had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same period in the prior year, the company posted $2.38 EPS. Applied Materials’s revenue was down 2.1% compared to the same quarter last year. Applied Materials updated its Q2 2026 guidance to 2.440-2.840 EPS.

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

• Applied expects to grow its semiconductor equipment business more than 20% in calendar 2026, with demand weighted to the second half and Q2 guidance of $7.65B ± $500M revenue and $2.64 ± $0.20 non‑GAAP EPS, and management says momentum should carry into 2027.
• Management emphasizes market leadership in AI‑driven segments—leading‑edge logic, HBM DRAM, and advanced packaging—and plans to launch a dozen+ new products this year while starting EPIC co‑development (with Samsung) to accelerate customer co‑innovation.
• Services and software are strengthening—Applied Global Services reported record revenue of $1.56B (up 15% YoY), and more than 30,000 chambers are connected to AIX, supporting faster response times and double‑digit services growth.
• Results were mixed—Q1 revenue was $7.0B (down 2% YoY) and non‑GAAP EPS of $2.38 was flat; China revenue declined 7% YoY and non‑GAAP operating profit fell 4%, which are near‑term headwinds to watch.
• GAAP results include a $252.5M accrual to resolve a U.S. export‑controls inquiry, and management has opportunistically built ~$500M of extra inventory (days ≈153) to support ramps—both items affect cash and execution risk.

Applied Materials Stock Performance

Applied Materials stock traded up $26.52 during midday trading on Monday, reaching $354.91. 15,698,876 shares of the company traded hands, compared to its average volume of 8,227,203. The firm has a market capitalization of $281.70 billion, a price-to-earnings ratio of 36.33, a price-to-earnings-growth ratio of 3.13 and a beta of 1.70. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. The business has a 50 day moving average of $295.20 and a two-hundred day moving average of $237.05. Applied Materials has a 12 month low of $123.74 and a 12 month high of $376.32.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, February 19th. Applied Materials’s dividend payout ratio (DPR) is presently 18.83%.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Q4 earnings beat and stronger-than-expected guidance — Applied reported an EPS beat and revenue above consensus, pushed to a new one‑year high as investors priced in sustained demand and healthy margins. Applied Materials (NASDAQ:AMAT) Hits New 1-Year High After Earnings Beat
• Positive Sentiment: Major analyst price‑target increases — Cantor Fitzgerald raised its target to $470 (from $425) and Needham raised its target to $440 (from $390), signaling higher upside expectations from sell‑side coverage. Applied Materials price target raised to $470 from $425 at Cantor Fitzgerald
• Positive Sentiment: Additional analyst upgrades and reiterations — Summit Insights upgraded AMAT and B. Riley reiterated a Buy, adding conviction from multiple firms that the company will benefit from secular semiconductor capex cycles. Applied Materials (NASDAQ:AMAT) Upgraded at Summit Insights
• Positive Sentiment: Regulatory clearance and stronger Samsung tie-up — Applied cleared a U.S. probe and a refocused Samsung EPIC partnership was highlighted as a growth catalyst, reducing regulatory overhang and supporting medium‑term revenue visibility. Applied Materials Clears US Probe As Samsung EPIC Partnership Refocuses Growth
• Positive Sentiment: Memory and AI thematic upside — Commentary arguing memory stocks are the next AI buying opportunity cites Applied’s positioning in memory factory equipment as a structural tailwind, supporting investor enthusiasm beyond near‑term numbers. Applied Materials Shows Why Memory Stocks Are the Next Big AI Buying Opportunity
• Neutral Sentiment: Sector is mixed — broader semiconductor tape shows divergence (TSMC/AMAT outperform while NVIDIA and Intel lag), so stock strength partly reflects stock‑specific news rather than uniform industry gains. Chip Stocks Split: AMAT and TSMC Gain While NVDA and Intel Retreat

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. KeyCorp increased their price target on shares of Applied Materials from $380.00 to $450.00 and gave the company an “overweight” rating in a research report on Friday. The Goldman Sachs Group upped their price objective on shares of Applied Materials from $310.00 to $390.00 and gave the company a “buy” rating in a research note on Friday. Sanford C. Bernstein reissued an “outperform” rating and issued a $425.00 target price on shares of Applied Materials in a research note on Friday. Wells Fargo & Company upped their price target on Applied Materials from $350.00 to $435.00 and gave the company an “overweight” rating in a research report on Friday. Finally, B. Riley Financial reiterated a “buy” rating on shares of Applied Materials in a research report on Monday, February 9th. Twenty-eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $361.03.

Insider Buying and Selling at Applied Materials

In related news, SVP Teri A. Little sold 4,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction on Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the transaction, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This represents a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 8,609 shares of company stock valued at $2,044,898 in the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently made changes to their positions in the business. FORA Capital LLC lifted its position in shares of Applied Materials by 40.7% in the fourth quarter. FORA Capital LLC now owns 12,969 shares of the manufacturing equipment provider’s stock worth $3,333,000 after buying an additional 3,751 shares in the last quarter. Burton Enright Welch bought a new position in shares of Applied Materials during the 4th quarter valued at approximately $335,000. Kestra Advisory Services LLC grew its holdings in shares of Applied Materials by 20.6% in the fourth quarter. Kestra Advisory Services LLC now owns 108,779 shares of the manufacturing equipment provider’s stock valued at $27,955,000 after purchasing an additional 18,609 shares in the last quarter. Transamerica Financial Advisors LLC increased its position in Applied Materials by 61.4% in the fourth quarter. Transamerica Financial Advisors LLC now owns 489 shares of the manufacturing equipment provider’s stock worth $126,000 after purchasing an additional 186 shares during the last quarter. Finally, Maverick Capital Ltd. purchased a new stake in Applied Materials during the fourth quarter valued at $290,727,000. 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.