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

Applied Materials (NASDAQ:AMAT) announced its quarterly earnings data on Thursday. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18, Zacks reports. Applied Materials had a return on equity of 38.48% and a net margin of 29.31%.The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the business posted $2.39 earnings per share. The firm’s revenue was up 11.4% compared to the same quarter last year. 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 Trading Down 0.9%

NASDAQ:AMAT traded down $3.94 on Friday, reaching $436.62. The company’s stock had a trading volume of 12,748,191 shares, compared to its average volume of 6,939,589. Applied Materials has a 12-month low of $153.47 and a 12-month high of $448.45. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The stock has a 50 day moving average price of $379.09 and a 200 day moving average price of $319.44. The firm has a market cap of $346.51 billion, a price-to-earnings ratio of 41.00, a price-to-earnings-growth ratio of 1.95 and a beta of 1.66.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a $0.53 dividend. This is an increase from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Thursday, May 21st. Applied Materials’s dividend payout ratio (DPR) is presently 18.83%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a research report on Friday. Seaport Research Partners started coverage on Applied Materials in a research report on Monday, May 4th. They set a “buy” rating and a $500.00 price objective on the stock. Cantor Fitzgerald lifted their target price on Applied Materials from $550.00 to $575.00 and gave the company an “overweight” rating in a research report on Friday. Morgan Stanley lifted their target price on Applied Materials from $454.00 to $502.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Wells Fargo & Company lifted their target price on Applied Materials from $435.00 to $520.00 and gave the company an “overweight” rating in a research report on Friday. Twenty-seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $463.89.

Insider Buying and Selling

In other Applied Materials news, CFO Brice Hill sold 5,000 shares of the business’s stock in a transaction dated 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 sale, the chief financial officer directly owned 138,565 shares in the company, valued at $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 534 shares of the firm’s stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the transaction, the chief accounting officer directly owned 4,625 shares of the company’s stock, valued at approximately $1,753,615. The trade was a 10.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 12,003 shares of company stock valued at $4,484,189. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently added to or reduced their stakes in AMAT. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the 4th quarter valued at approximately $26,000. Triumph Capital Management purchased a new position in Applied Materials in the 3rd quarter valued at approximately $38,000. Swiss RE Ltd. purchased a new position in Applied Materials in the 4th quarter valued at approximately $75,000. Rakuten Securities Inc. boosted its position in Applied Materials by 38.9% in the 2nd quarter. Rakuten Securities Inc. now owns 439 shares of the manufacturing equipment provider’s stock valued at $80,000 after buying an additional 123 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new position in Applied Materials in the 4th quarter valued at approximately $81,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials posted record Q2 results, beating EPS and revenue expectations and lifting its outlook, with management citing strong AI infrastructure spending as a key growth driver. Applied Materials Announces Second Quarter 2026 Results
• Positive Sentiment: Wall Street turned more bullish after the report, with multiple firms raising price targets, including Bank of America, JPMorgan, Mizuho, Morgan Stanley, Needham, and KeyCorp, reinforcing confidence in multi-year earnings growth. Applied Materials Sees Multi-Year AI Boom Driving Record Revenue And Growth Through 2028
• Positive Sentiment: Several analysts highlighted a durable AI-driven semiconductor upcycle, suggesting Applied Materials could sustain elevated demand and margins through 2027-2028. Krish Sankar Reaffirms Buy on Applied Materials
• Neutral Sentiment: The broader market backdrop is weaker, with major indexes down as Treasury yields and oil prices rise, which is adding headwinds for high-valuation tech and AI stocks. Stock Market Today: Dow Falls As Oil Prices, Yields Jump; Applied Materials, Nvidia, Cerebras Slide
• Negative Sentiment: Even with the strong earnings report, the stock is slipping as investors rotate out after a sharp year-to-date rally, showing some concern that expectations may already be very high. Applied Materials slips despite record quarter and strong outlook (AMAT)

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.