Applied Materials (NASDAQ:AMAT) Releases Q2 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) updated its second quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.440-2.840 for the period, compared to the consensus EPS estimate of 2.290. The company issued revenue guidance of $7.2 billion-$8.2 billion, compared to the consensus revenue estimate of $7.0 billion.

Applied Materials Price Performance

Shares of NASDAQ AMAT traded up $26.52 during mid-day trading on Friday, reaching $354.91. 15,698,876 shares of the company were exchanged, compared to its average volume of 8,011,865. The stock has a market capitalization of $281.70 billion, a PE ratio of 36.33, a PEG ratio of 2.92 and a beta of 1.70. The company has a quick ratio of 1.87, a current ratio of 2.61 and a debt-to-equity ratio of 0.32. Applied Materials has a 52 week low of $123.74 and a 52 week high of $376.32. The company’s 50 day moving average price is $295.20 and its 200 day moving average price is $236.38.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.19 by $0.19. The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a return on equity of 38.52% and a net margin of 27.78%.Applied Materials’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Sell-side analysts forecast that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, February 19th. Applied Materials’s dividend payout ratio is presently 21.20%.

Wall Street Analysts Forecast Growth

AMAT has been the topic of several analyst reports. Morgan Stanley set a $420.00 price objective on Applied Materials in a report on Friday. BNP Paribas Exane upgraded Applied Materials to a “hold” rating in a research report on Monday, November 17th. Summit Insights upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $450.00 target price on shares of Applied Materials in a research note on Friday. Finally, Craig Hallum reissued a “hold” rating and set a $190.00 price target on shares of Applied Materials in a research report on Friday, November 14th. Twenty-eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $361.03.

Insider Activity

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was 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 owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction 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 approximately $1,127,653.89. This trade represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 8,609 shares of company stock valued at $2,044,898. Corporate insiders own 0.30% 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 consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

Hedge Funds Weigh In On Applied Materials

Several large investors have recently modified their holdings of the stock. Brighton Jones LLC grew its stake in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares during the period. Schnieders Capital Management LLC. lifted its stake in shares of Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock worth $590,000 after buying an additional 679 shares during the last quarter. Rossby Financial LCC boosted its holdings in shares of Applied Materials by 24.2% in the fourth quarter. Rossby Financial LCC now owns 651 shares of the manufacturing equipment provider’s stock worth $167,000 after buying an additional 127 shares during the last quarter. Finally, von Borstel & Associates Inc. bought a new stake in Applied Materials during the third quarter valued at approximately $183,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.