Applied Materials, Inc. (NASDAQ:AMAT – Free Report) – Analysts at Erste Group Bank boosted their FY2027 earnings per share estimates for Applied Materials in a research note issued to investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now forecasts that the manufacturing equipment provider will post earnings per share of $18.59 for the year, up from their prior estimate of $18.56. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for Applied Materials’ current full-year earnings is $12.79 per share.
Applied Materials (NASDAQ:AMAT – Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.10. The business had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The company’s quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the company earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS.
View Our Latest Stock Analysis on Applied Materials
Applied Materials Stock Performance
AMAT opened at $497.53 on Tuesday. Applied Materials has a 52-week low of $203.40 and a 52-week high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The company has a market cap of $394.84 billion, a P/E ratio of 42.89, a price-to-earnings-growth ratio of 1.41 and a beta of 1.60. The firm’s 50-day moving average price is $488.47 and its 200-day moving average price is $483.54.
Applied Materials Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.
Insider Transactions at Applied Materials
In other news, CAO Adam Sanders sold 725 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the sale, the chief accounting officer owned 3,181 shares of the company’s stock, valued at $1,732,245.36. This trade represents a 18.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the transaction, the chief financial officer directly owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,225 shares of company stock valued at $4,454,181 in the last 90 days. 0.30% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at approximately $25,000. Harborfront Financial Group LLC acquired a new position in shares of Applied Materials during the 2nd quarter worth approximately $27,000. Financial Freedom LLC acquired a new position in shares of Applied Materials during the 1st quarter worth approximately $28,000. Dakota Community Bank & Trust NA purchased a new position in shares of Applied Materials during the 3rd quarter valued at approximately $31,000. Finally, Orion Capital Management LLC purchased a new position in shares of Applied Materials during the 2nd quarter valued at approximately $33,000. Hedge funds and other institutional investors 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: Applied Materials unveiled a planned $5 billion EPIC Center in Silicon Valley, designed to bring chipmakers, systems companies, equipment partners and universities together to accelerate AI-era semiconductor process and equipment development. The facility could strengthen AMAT’s technology leadership and support future demand. Applied Materials Unveils $5 Billion EPIC Center
- Positive Sentiment: Applied Materials and Intel are expanding their collaboration on next-generation AI chipmaking, including transistors, interconnects and Intel’s Foveros 3D packaging technology. The partnership may improve AMAT’s exposure to advanced-node and advanced-packaging spending. Intel and Applied Materials Partnership
- Positive Sentiment: Bank of America reiterated a Buy rating and maintained a $650 price target, citing structural wafer-fabrication equipment growth and potential earnings upside. Applied Materials Buy Rating Reiterated
- Positive Sentiment: Applied Ventures invested in Flexcompute, supporting AI software that models real-world physics. Although financial terms were not disclosed, the investment could complement AMAT’s semiconductor engineering and simulation capabilities. Flexcompute Raises Strategic Investment
- Neutral Sentiment: Management aims to double revenue in coming years by using AI to improve productivity rather than expanding headcount proportionally. The strategy could support operating leverage, but it also raises execution concerns because the ambitious growth target is not yet accompanied by specific financial guidance. Applied Materials Revenue Growth Strategy
- Negative Sentiment: AMAT trades at roughly 39.5 times adjusted trailing earnings, leaving limited room for disappointment. Investors are questioning how much of the expected AI-driven growth is already reflected in the valuation. What Are Applied Materials Investors Betting On?
- Negative Sentiment: Industry wafer-fabrication equipment spending is forecast to rise sharply in 2026, but reports indicate Applied Materials’ market share has declined, suggesting the company may not be capturing growth as effectively as some competitors. Applied Materials Market Share Test
About Applied Materials
Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.
The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.
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