Applied Materials (NASDAQ:AMAT) Sets New 12-Month High Following Strong Earnings

Applied Materials, Inc. (NASDAQ:AMAT) hit a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $376.32 and last traded at $365.4140, with a volume of 5107368 shares trading hands. The stock had previously closed at $328.39.

The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.19 by $0.19. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The firm had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials’s quarterly revenue was down 2.1% on a year-over-year basis. During the same period in the previous year, the business posted $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS.

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 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, February 19th. Applied Materials’s payout ratio is currently 21.20%.

Key Applied Materials News

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

• Positive Sentiment: Q1 beat and bullish guidance — AMAT topped EPS and revenue estimates and guided Q2 above Street expectations, citing strong orders for AI processors and tighter memory supply that should support equipment demand. Applied Materials jumps as AI demand drives chipmaking tool orders (Reuters)
• Positive Sentiment: Analyst upgrades and higher price targets — Multiple firms upgraded AMAT (Summit to Buy) and raised targets (Mizuho, Needham, B. Riley among others), reinforcing bullish expectations for WFE/AI tailwinds. Summit upgrades Applied Materials to Buy (Yahoo)
• Positive Sentiment: Management outlook and strategic wins — Management projects strong secular growth (CEO flagged >20% WFE revenue growth opportunity) and announced Samsung joining AMAT’s new EPIC R&D center — supports longer‑term market share and product roadmap. Applied Materials stock jumps after earnings (MarketWatch)
• Neutral Sentiment: Export‑probe resolution removes regulatory overhang — AMAT reached a settlement with the U.S. Commerce Dept. that closes DOJ/SEC reviews, which reduces legal uncertainty even as the company acknowledges compliance issues. Applied Materials Reaches Resolution with the U.S. Department of Commerce (GlobeNewswire)
• Neutral Sentiment: Macro and market context — Broader market headwinds (soft futures ahead of CPI) and sector rotation can amplify volatility in semicap names despite company‑specific strength. 5 Things to Know Before the Stock Market Opens (Investopedia)
• Negative Sentiment: Settlement cost — the BIS settlement carries a cash payment (~$252.5M) that is a one‑time hit and raises governance/compliance questions for some investors. Applied Materials to pay $252 million to resolve illegal chip exports (Reuters)
• Negative Sentiment: Valuation and profit‑taking risk — AMAT has run sharply higher YTD and some voices have flagged stretched multiples and near‑term profit‑taking, which likely explains today’s pullback after the post‑earnings spike. Applied Materials stock falls ahead of earnings as Lynx sounds caution (Investing.com)

Analyst Upgrades and Downgrades

A number of equities analysts have commented on AMAT shares. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $385.00 target price on shares of Applied Materials in a research note on Tuesday. Needham & Company LLC lifted their price target on shares of Applied Materials to $440.00 and gave the company a “buy” rating in a research report on Friday. JPMorgan Chase & Co. increased their price objective on Applied Materials from $220.00 to $260.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. Susquehanna upgraded Applied Materials from a “neutral” rating to a “positive” rating and lifted their target price for the company from $180.00 to $400.00 in a research report on Sunday, January 11th. Finally, Evercore reaffirmed an “outperform” rating and issued a $290.00 price target on shares of Applied Materials in a research note on Friday, November 14th. Twenty-seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $338.93.

Insider Activity

In other news, CAO Adam Sanders sold 609 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Teri A. Little sold 4,000 shares of the firm’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 transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 8,609 shares of company stock worth $2,044,898. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Marquette Asset Management LLC raised its position in Applied Materials by 150.0% during the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after acquiring an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC purchased a new position in shares of Applied Materials during the 3rd quarter worth approximately $26,000. Highline Wealth Partners LLC raised its position in shares of Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after purchasing an additional 38 shares during the last quarter. Financial Gravity Companies Inc. purchased a new stake in Applied Materials in the 2nd quarter valued at approximately $31,000. Finally, Manning & Napier Advisors LLC acquired a new stake in Applied Materials during the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Applied Materials Stock Up 10.3%

The company has a market cap of $287.56 billion, a PE ratio of 41.74, a P/E/G ratio of 3.02 and a beta of 1.70. The firm has a 50-day simple moving average of $293.46 and a two-hundred day simple moving average of $235.24. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.61 and a quick ratio of 1.87.

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.