Applied Materials (NASDAQ:AMAT) Updates Q3 2025 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its third quarter 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 2.150-2.550 for the period, compared to the consensus estimate of 2.310. The company issued revenue guidance of $6.7 billion-$7.7 billion, compared to the consensus revenue estimate of $7.2 billion.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AMAT. Edward Jones upgraded Applied Materials from a “hold” rating to a “buy” rating in a research report on Wednesday, March 12th. Citigroup reduced their price target on shares of Applied Materials from $202.00 to $170.00 and set a “buy” rating on the stock in a research report on Friday, April 11th. Needham & Company LLC restated a “buy” rating and issued a $195.00 price objective on shares of Applied Materials in a report on Friday. B. Riley reduced their target price on shares of Applied Materials from $250.00 to $215.00 and set a “buy” rating on the stock in a report on Monday. Finally, Stifel Nicolaus decreased their target price on shares of Applied Materials from $235.00 to $195.00 and set a “buy” rating on the stock in a research report on Tuesday, April 15th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and seventeen have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $203.38.

Applied Materials Stock Performance

Shares of AMAT stock opened at $174.75 on Friday. The firm has a market capitalization of $141.97 billion, a price-to-earnings ratio of 22.84, a PEG ratio of 1.81 and a beta of 1.71. The stock has a fifty day moving average of $148.81 and a 200 day moving average of $165.66. Applied Materials has a 52 week low of $123.74 and a 52 week high of $255.89. The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, topping the consensus estimate of $2.31 by $0.08. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The firm had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.12 billion. As a group, research analysts expect that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 22nd will be given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 1.05%. This is a boost from Applied Materials’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Thursday, May 22nd. Applied Materials’s payout ratio is presently 24.05%.

Applied Materials declared that its Board of Directors has initiated a stock repurchase program on Monday, March 10th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the manufacturing equipment provider to buy up to 8.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, CEO Gary E. Dickerson purchased 50,000 shares of the company’s stock in a transaction dated Thursday, April 3rd. The shares were purchased at an average cost of $137.30 per share, with a total value of $6,865,000.00. Following the transaction, the chief executive officer now directly owns 1,716,058 shares in the company, valued at $235,614,763.40. This trade represents a 3.00% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Adam Sanders sold 271 shares of the company’s stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $172.72, for a total value of $46,807.12. Following the completion of the sale, the chief accounting officer now owns 6,479 shares in the company, valued at $1,119,052.88. The trade was a 4.01% decrease in their position. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

An institutional investor recently raised its position in Applied Materials stock. Brighton Jones LLC increased its position in Applied Materials, Inc. (NASDAQ:AMAT) by 28.0% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,674 shares of the manufacturing equipment provider’s stock after purchasing an additional 2,771 shares during the period. Brighton Jones LLC’s holdings in Applied Materials were worth $2,061,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.