Applied Materials (NASDAQ:AMAT) Posts Earnings Results, Beats Expectations By $0.18 EPS

Applied Materials (NASDAQ:AMAT) issued 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 net margin of 27.78% and a return on equity of 37.52%. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the business posted $2.39 earnings per share. The firm’s quarterly revenue was up 11.4% on a year-over-year basis. 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 Stock Up 0.9%

Shares of NASDAQ AMAT traded up $3.95 during mid-day trading on Thursday, reaching $440.56. 14,603,213 shares of the company’s stock traded hands, compared to its average volume of 6,448,430. The stock has a market cap of $349.63 billion, a P/E ratio of 45.09, a PEG ratio of 1.94 and a beta of 1.66. The business has a 50-day simple moving average of $375.73 and a 200 day simple moving average of $317.13. Applied Materials has a 1-year low of $153.47 and a 1-year high of $448.45. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94.

Applied Materials Increases Dividend

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

Key Applied Materials News

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

• Positive Sentiment: Applied Materials reported better-than-expected Q2 results, with EPS and revenue both topping analyst forecasts, signaling healthy demand for its chip-making tools. Applied Materials (AMAT) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company issued third-quarter guidance above expectations for both EPS and revenue, reinforcing confidence that AI-related spending will keep driving growth. Applied Materials sees upbeat quarterly revenue on sustained AI spending
• Positive Sentiment: Management highlighted record quarterly performance and ongoing strength in AI computing infrastructure buildout, which supports the bullish stock reaction. Applied Materials delivers record quarter and stronger-than-expected outlook
• Positive Sentiment: Recent analyst price-target increases and multiple Buy/Overweight ratings added to momentum ahead of and after earnings. Citi massively revamps Applied Materials stock price target
• Neutral Sentiment: Investors were already expecting a big move into earnings, with options markets pricing in elevated volatility around the report. Applied Materials Last-Minute Q2 Earnings Alert
• Neutral Sentiment: Analysts and media continued to frame AMAT as a key AI infrastructure beneficiary, keeping sentiment constructive without adding new company-specific news. How Applied Materials (AMAT) Is Deepening Its Role in AI Chip Manufacturing
• Negative Sentiment: Some investors remain cautious because growth in China has been slowing and export restrictions could continue to pressure demand in certain segments. Applied Materials’ Coming AI Boom Comes Under the Microscope as It Reports Earnings

Insider Activity

In related news, CAO Adam Sanders sold 534 shares of the business’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total transaction of $202,471.44. Following the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at approximately $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 5,000 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the transaction, the chief financial officer owned 138,565 shares in the company, valued at approximately $50,051,063.65. This trade represents a 3.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,003 shares of company stock worth $4,484,189 over the last three months. 0.30% of the stock is currently owned by insiders.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the business. Warther Private Wealth LLC raised its position in shares of Applied Materials by 1.5% in the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock valued at $490,000 after purchasing an additional 28 shares during the period. Hoxton Planning & Management LLC raised its position in shares of Applied Materials by 1.4% in the fourth quarter. Hoxton Planning & Management LLC now owns 2,208 shares of the manufacturing equipment provider’s stock valued at $567,000 after purchasing an additional 31 shares during the period. GW&K Investment Management LLC raised its position in shares of Applied Materials by 3.9% in the fourth quarter. GW&K Investment Management LLC now owns 897 shares of the manufacturing equipment provider’s stock valued at $231,000 after purchasing an additional 34 shares during the period. Kirtland Hills Capital Management LLC raised its position in shares of Applied Materials by 0.7% in the fourth quarter. Kirtland Hills Capital Management LLC now owns 4,720 shares of the manufacturing equipment provider’s stock valued at $1,213,000 after purchasing an additional 35 shares during the period. Finally, Sumitomo Life Insurance Co. raised its position in shares of 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 valued at $1,481,000 after purchasing an additional 38 shares during the period. Institutional investors own 80.56% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a report on Friday, March 27th. Erste Group Bank raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Monday, April 27th. Seaport Research Partners initiated coverage on shares of Applied Materials in a report on Monday, May 4th. They set a “buy” rating and a $500.00 target price on the stock. Royal Bank Of Canada reiterated an “outperform” rating and set a $500.00 price target on shares of Applied Materials in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $450.00 price target on shares of Applied Materials in a research report on Friday, February 13th. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $384.52.

Applied Materials Company Profile

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.