Research Analysts Offer Predictions for AMAT FY2026 Earnings

Applied Materials, Inc. (NASDAQ:AMAT) – Equities research analysts at Erste Group Bank lifted their FY2026 earnings per share (EPS) estimates for Applied Materials in a research note issued on Friday, June 5th. Erste Group Bank analyst S. Lingnau now anticipates that the manufacturing equipment provider will post earnings of $12.20 per share for the year, up from their prior estimate of $11.12. Erste Group Bank currently has a “Buy” rating on the stock. The consensus estimate for Applied Materials’ current full-year earnings is $12.02 per share. Erste Group Bank also issued estimates for Applied Materials’ FY2027 earnings at $16.29 EPS.

Other equities analysts have also recently issued research reports about the company. DZ Bank upgraded Applied Materials to a “hold” rating in a research report on Monday, February 16th. JPMorgan Chase & Co. boosted their price target on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Stifel Nicolaus set a $530.00 price target on Applied Materials in a research report on Friday, May 15th. Jefferies Financial Group boosted their price target on Applied Materials from $415.00 to $510.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Finally, TD Cowen boosted their price target on Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and a consensus price target of $483.03.

Applied Materials Stock Up 11.2%

AMAT opened at $552.64 on Friday. The business’s 50-day simple moving average is $422.95 and its 200-day simple moving average is $351.11. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials has a one year low of $154.46 and a one year high of $557.62. The stock has a market capitalization of $438.77 billion, a P/E ratio of 51.89, a price-to-earnings-growth ratio of 1.39 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the previous year, the firm earned $2.39 earnings per share. The business’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the business. First Trust Advisors LP boosted its stake in shares of Applied Materials by 4.9% during the 3rd quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider’s stock worth $635,057,000 after acquiring an additional 145,050 shares in the last quarter. Elo Mutual Pension Insurance Co boosted its stake in shares of Applied Materials by 21.8% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider’s stock worth $19,801,000 after acquiring an additional 17,288 shares in the last quarter. Worth Asset Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth approximately $1,531,000. World Investment Advisors boosted its stake in shares of Applied Materials by 4.5% during the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock worth $21,149,000 after acquiring an additional 3,508 shares in the last quarter. Finally, Avity Investment Management Inc. boosted its stake in shares of Applied Materials by 1.1% during the 3rd quarter. Avity Investment Management Inc. now owns 223,211 shares of the manufacturing equipment provider’s stock worth $45,700,000 after acquiring an additional 2,376 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Insiders Place Their Bets

In other Applied Materials news, Director Judy Bruner sold 1,128 shares of Applied Materials stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $450.00, for a total value of $507,600.00. Following the sale, the director owned 26,544 shares of the company’s stock, valued at approximately $11,944,800. The trade was a 4.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider directly owned 356,642 shares in the company, valued at $180,204,069.76. This represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 53,896 shares of company stock worth $27,135,121 over the last quarter. 0.30% of the stock is owned by company insiders.

Applied Materials Announces Dividend

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

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for Applied Materials, now expecting $12.20 EPS for FY2026 and $16.29 EPS for FY2027, well above the current consensus of $12.02 for this year. The firm kept a Buy rating, reinforcing the view that earnings momentum remains strong. Applied Materials earnings estimate upgrade
• Positive Sentiment: Barclays reiterated an Overweight rating, and several other firms recently lifted price targets, signaling continued Wall Street confidence in Applied Materials’ role in the AI-driven chip equipment cycle. Barclays bullish on Applied Materials
• Positive Sentiment: Recent commentary highlighted Applied Materials as a top HBM/AI infrastructure stock, while its Singapore expansion and broader semiconductor capex outlook support the case for longer-term revenue growth. Applied Materials AI and HBM demand article
• Neutral Sentiment: Broader markets were strong on Thursday, which may also have helped sentiment toward cyclical semiconductor names like AMAT. Market rally article
• Negative Sentiment: One recent note mentioned that investors were weighing the company’s $500 million Singapore expansion, which could pressure near-term margins or cash flow even as it supports future demand. Singapore expansion cost article

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.