Applied Materials (NASDAQ:AMAT) Announces Quarterly Earnings Results

Applied Materials (NASDAQ:AMAT) released its quarterly earnings results on Thursday. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.19, Zacks reports. The company had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. Applied Materials’s revenue was down 2.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.38 EPS. 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 Trading Down 3.4%

Shares of AMAT opened at $328.46 on Friday. The business’s 50-day moving average price is $293.46 and its 200 day moving average price is $235.24. The company has a current ratio of 2.61, a quick ratio of 1.87 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $260.71 billion, a P/E ratio of 37.84, a P/E/G ratio of 3.02 and a beta of 1.70. Applied Materials has a 1-year low of $123.74 and a 1-year high of $344.60.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be given a $0.46 dividend. The ex-dividend date is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is 21.20%.

Insider Activity

In other news, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total value of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction that occurred on 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 in the company, valued at $1,127,653.89. This represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 8,609 shares of company stock valued at $2,044,898. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Applied Materials by 617.2% during 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 in the last quarter. Rafferty Asset Management LLC boosted its position in Applied Materials by 39.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 2,502,036 shares of the manufacturing equipment provider’s stock worth $458,048,000 after acquiring an additional 706,939 shares during the period. California Public Employees Retirement System boosted its position in Applied Materials by 25.8% during the 4th quarter. California Public Employees Retirement System now owns 2,058,801 shares of the manufacturing equipment provider’s stock worth $529,091,000 after acquiring an additional 422,453 shares during the period. CANADA LIFE ASSURANCE Co grew its stake in Applied Materials by 7.1% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 1,486,828 shares of the manufacturing equipment provider’s stock valued at $304,660,000 after acquiring an additional 98,978 shares in the last quarter. Finally, Raymond James Financial Inc. increased its holdings in shares of Applied Materials by 9.6% in the 3rd quarter. Raymond James Financial Inc. now owns 1,319,489 shares of the manufacturing equipment provider’s stock valued at $270,152,000 after purchasing an additional 115,226 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials News Summary

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

• Positive Sentiment: Q1 results beat expectations (EPS $2.38 vs. $2.19 est.; revenue $7.01B) and management guided Q2 EPS and revenue above Street estimates — management also signaled strong AI-driven demand for processors that should lift tool orders. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Wall Street reaction: B. Riley boosted its price target to $400 and reiterated a Buy; multiple firms have high targets and reiterated buys, supporting upside expectations. B. Riley Raises Applied Materials, Inc. (AMAT) Price Target to $400, Reaffirms Buy
• Positive Sentiment: Strategic industry positioning: Applied announced Samsung will join its new $5B EPIC R&D center — a sign of deep customer collaboration that can accelerate product adoption for next?gen nodes and advanced packaging. Applied Materials Announces Samsung Electronics Will Join the New, Multibillion-Dollar EPIC Center
• Neutral Sentiment: Regulatory overhang largely cleared — Applied reached a civil settlement with the U.S. Department of Commerce and said related DOJ and SEC probes were closed without action, removing a significant legal cloud and allowing management to refocus on execution. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Neutral Sentiment: Valuation and momentum risk: the stock entered earnings trading near multi?month/all?time highs and carries rich multiples, so even a strong print can prompt profit?taking — worth watching for short?term volatility. How to Read Applied Materials Earnings: What Signals Move the Stock?
• Negative Sentiment: Cash impact: Applied agreed to pay roughly $252.5M to resolve alleged export-control violations — a meaningful one-time charge that reduces cash but also finalizes the government review. Applied Materials to pay $252 million to resolve illegal chip exports, US says

Analysts Set New Price Targets

Several brokerages recently commented on AMAT. Royal Bank Of Canada reissued an “outperform” rating and set a $385.00 target price on shares of Applied Materials in a report on Tuesday. Needham & Company LLC lifted their price target on Applied Materials from $260.00 to $390.00 and gave the company a “buy” rating in a research report on Tuesday, January 20th. Morgan Stanley boosted their price objective on Applied Materials from $273.00 to $364.00 and gave the stock an “overweight” rating in a research note on Monday, February 2nd. Stifel Nicolaus raised their target price on Applied Materials from $250.00 to $340.00 and gave the company a “buy” rating in a research note on Wednesday, January 14th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $325.00 target price on shares of Applied Materials in a report on Monday, January 12th. Twenty-five research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus price target of $319.07.

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.