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 EPS guidance of 3.820-4.220 for the period, compared to the consensus EPS 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 Trading Down 2.5%

AMAT traded down $13.61 during mid-day trading on Thursday, hitting $534.54. The stock had a trading volume of 11,210,342 shares, compared to its average volume of 8,198,248. The stock’s fifty day simple moving average is $562.41 and its 200-day simple moving average is $442.96. The firm has a market capitalization of $424.40 billion, a price-to-earnings ratio of 50.19, a price-to-earnings-growth ratio of 1.33 and a beta of 1.61. Applied Materials has a 1-year low of $154.46 and a 1-year high of $739.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts forecast that Applied Materials will post 12.22 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared 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 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is 19.91%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on AMAT shares. Morgan Stanley lifted their price objective on Applied Materials from $502.00 to $647.00 and gave the company an “equal weight” rating in a report on Monday, July 6th. Raymond James Financial set a $650.00 target price on Applied Materials in a research note on Wednesday, June 10th. Erste Group Bank lowered shares of Applied Materials from a “buy” rating to a “hold” rating in a research note on Wednesday, August 5th. Mizuho increased their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 8th. Finally, Truist Financial set a $575.00 price objective on shares of Applied Materials in a report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $603.23.

Insider Activity at Applied Materials

In related news, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director directly owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by corporate insiders.

Key Applied Materials News

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

• Positive Sentiment: Optimism is being driven by expectations for strong AI-related semiconductor-equipment demand. Analysts anticipate approximately $9 billion in revenue and $3.39 in EPS, while Applied Materials expects semiconductor-equipment growth of more than 30% in 2026. Applied Materials earnings estimates
• Positive Sentiment: Zacks upgraded AMAT to Rank #1, or Strong Buy, citing improving earnings prospects. Zacks’ earnings model also signals another potential earnings beat, supporting near-term investor confidence. Zacks rating upgrade
• Positive Sentiment: Semiconductor-equipment shares received a lift after SanDisk issued bullish financial targets, reinforcing the view that AI infrastructure and memory demand could benefit Applied Materials. The company is also expanding AI-chip research through a collaboration with UC Berkeley. Semiconductor equipment shares rise after SanDisk targets
• Neutral Sentiment: Investors are focused on management’s outlook for AI-driven equipment demand, margins, China exposure and the sustainability of the recent rally. Technical analysts identify roughly $555 as a key resistance level, making the earnings reaction particularly important. Applied Materials Q3 earnings risks
• Negative Sentiment: Options positioning is cautious, with reports citing an elevated put-to-call ratio and expectations for a sizable post-earnings move. Concerns about margin pressure, China-related uncertainty and the stock’s elevated valuation could weigh on AMAT if results merely meet expectations. Applied Materials options market signals

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AMAT. Compound Planning Inc. raised its holdings in shares of Applied Materials by 15.5% in the 4th quarter. Compound Planning Inc. now owns 10,757 shares of the manufacturing equipment provider’s stock valued at $2,764,000 after purchasing an additional 1,440 shares during the period. Rare Wolf Capital LLC bought a new stake in Applied Materials in the fourth quarter valued at approximately $255,000. Strive Financial Group LLC acquired a new stake in shares of Applied Materials in the fourth quarter valued at approximately $407,000. First Commonwealth Financial Corp PA boosted its stake in shares of Applied Materials by 5.6% during the 4th quarter. First Commonwealth Financial Corp PA now owns 6,089 shares of the manufacturing equipment provider’s stock worth $1,565,000 after acquiring an additional 321 shares during the period. Finally, Blue Sparrow LLC DE bought a new position in shares of Applied Materials during the 4th quarter worth approximately $30,711,000. 80.56% of the stock is currently owned by institutional investors.

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.