Applied Materials (NASDAQ:AMAT) Updates Q4 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) updated its fourth quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 3.820-4.220 for the period, compared to the consensus earnings per share estimate of 3.650. The company issued revenue guidance of $9.8 billion-$10.8 billion, compared to the consensus revenue estimate of $9.5 billion.

Applied Materials Price Performance

Applied Materials stock opened at $507.18 on Friday. The business has a 50 day simple moving average of $564.15 and a 200 day simple moving average of $444.89. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company has a market capitalization of $402.68 billion, a PE ratio of 43.72, a price-to-earnings-growth ratio of 1.35 and a beta of 1.61. Applied Materials has a one year low of $154.46 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 39.58% and a net margin of 30.05%.The firm had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. During the same period in the prior year, the business posted $2.48 earnings per share. The business’s revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials will post 12.22 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is presently 19.91%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday. The Goldman Sachs Group restated a “buy” rating and issued a $645.00 price target on shares of Applied Materials in a research report on Monday, August 3rd. Seaport Research Partners reaffirmed a “buy” rating and set a $575.00 price objective on shares of Applied Materials in a research note on Friday. Wolfe Research increased their price target on Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Finally, Mizuho raised their price target on Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Applied Materials has an average rating of “Moderate Buy” and a consensus price target of $640.17.

Insider Buying and Selling at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Gary E. Dickerson sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the sale, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 278,088 shares of company stock valued at $169,654,805 over the last three months. 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: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AMAT. Morgan Stanley grew its position in shares of Applied Materials by 3.4% during the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Applied Materials by 617.2% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock valued at $1,869,170,000 after buying an additional 7,856,576 shares during the period. Coatue Management LLC boosted its stake in Applied Materials by 78.7% in the fourth quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider’s stock valued at $1,537,913,000 after acquiring an additional 2,635,284 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Applied Materials by 18.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,384,256 shares of the manufacturing equipment provider’s stock valued at $1,383,701,000 after acquiring an additional 840,486 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in Applied Materials by 0.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,882,209 shares of the manufacturing equipment provider’s stock worth $1,254,679,000 after acquiring an additional 21,468 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.