Applied Materials (NASDAQ:AMAT) Releases Q1 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its first quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.980-2.380 for the period, compared to the consensus earnings per share estimate of 2.160. The company issued revenue guidance of $6.4 billion-$7.4 billion, compared to the consensus revenue estimate of $6.8 billion.

Applied Materials Stock Performance

AMAT traded down $7.50 during trading on Thursday, hitting $223.23. 12,216,653 shares of the stock were exchanged, compared to its average volume of 7,584,260. The company has a quick ratio of 1.76, a current ratio of 2.50 and a debt-to-equity ratio of 0.28. Applied Materials has a 1-year low of $123.74 and a 1-year high of $242.50. The stock has a fifty day moving average price of $209.71 and a two-hundred day moving average price of $186.02. The firm has a market capitalization of $177.83 billion, a P/E ratio of 26.61, a PEG ratio of 2.95 and a beta of 1.84.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.06. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. As a group, sell-side analysts predict that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 11th. Stockholders of record on Thursday, November 20th will be paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 20th. Applied Materials’s dividend payout ratio is 21.93%.

Analyst Upgrades and Downgrades

AMAT has been the topic of a number of analyst reports. Morgan Stanley reiterated an “overweight” rating and set a $256.00 target price on shares of Applied Materials in a report on Friday, October 31st. The Goldman Sachs Group upped their price objective on Applied Materials from $215.00 to $250.00 and gave the company a “buy” rating in a research report on Thursday, October 9th. Daiwa America cut Applied Materials from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 20th. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $210.00 to $220.00 and gave the company an “overweight” rating in a research note on Friday, August 15th. Finally, DZ Bank cut shares of Applied Materials from a “hold” rating to a “sell” rating and set a $150.00 price target on the stock. in a research note on Friday, August 15th. Eighteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $212.31.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in AMAT. Rakuten Securities Inc. grew its holdings in shares of Applied Materials by 38.9% during the second quarter. Rakuten Securities Inc. now owns 439 shares of the manufacturing equipment provider’s stock valued at $80,000 after purchasing an additional 123 shares during the last quarter. WealthCollab LLC boosted its position in Applied Materials by 27.7% during the 2nd quarter. WealthCollab LLC now owns 609 shares of the manufacturing equipment provider’s stock valued at $111,000 after purchasing an additional 132 shares during the period. Seldon Capital LP bought a new position in Applied Materials during the 2nd quarter worth $206,000. State of Wyoming acquired a new stake in Applied Materials in the second quarter worth $220,000. Finally, Auxier Asset Management acquired a new stake in Applied Materials in the second quarter worth $235,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.