Applied Materials (NASDAQ:AMAT) Posts Earnings Results, Beats Expectations By $0.10 EPS

Applied Materials (NASDAQ:AMAT) posted its quarterly earnings data on Thursday. The manufacturing equipment provider reported $4.16 EPS for the quarter, beating analysts’ consensus estimates of $4.06 by $0.10, FiscalAI reports. The business had revenue of $10.41 billion for the quarter, compared to analyst estimates of $10.30 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. Applied Materials updated its Q1 2027 guidance to 4.150-4.550 EPS.

Applied Materials Trading Down 3.6%

Shares of AMAT stock traded down $14.13 during trading hours on Thursday, hitting $380.95. 8,924,583 shares of the company were exchanged, compared to its average volume of 7,928,751. The firm has a market cap of $302.32 billion, a PE ratio of 32.84, a PEG ratio of 0.73 and a beta of 1.67. Applied Materials has a 1 year low of $203.40 and a 1 year 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 firm has a fifty day moving average of $440.37 and a 200 day moving average of $445.52.

Applied Materials Announces Dividend

The business 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 0.6%. Applied Materials’s dividend payout ratio is currently 18.28%.

Insider Buying and Selling

In related news, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 9,225 shares of company stock valued at $4,454,181. Insiders own 0.30% of the company’s stock.

Key Applied Materials News

These are some of the AMAT news items that stood out recently:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while non-GAAP EPS was a record $4.16. Both exceeded analyst estimates of $10.30 billion and $4.06, respectively. Full-year revenue rose 21% to a record $34.45 billion. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Management forecast Q1 2027 revenue of $10.6 billion–$11.6 billion, with the midpoint above the $10.7 billion consensus, and EPS of $4.15–$4.55. The company cited strong demand for AI-related chips as a driver of equipment spending. Applied Materials forecasts quarterly revenue above estimates on strong AI chip demand
• Negative Sentiment: The earnings beat did not overcome broader semiconductor-sector weakness and concerns tied to Nvidia-related market fallout. Recent selling had also left AMAT well below its recent high, potentially raising investor caution and expectations for a stronger catalyst. Applied Materials Drops 3.6% While Rival KLA Gains on the Same Day

Analysts Set New Price Targets

AMAT has been the topic of a number of recent research reports. Craig Hallum upped their target price on shares of Applied Materials from $530.00 to $585.00 and gave the company a “buy” rating in a report on Friday, August 14th. Argus set a $600.00 price target on shares of Applied Materials and gave the stock a “buy” rating in a research note on Tuesday, August 18th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Applied Materials in a report on Tuesday, October 20th. UBS Group boosted their price objective on shares of Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $600.00 price objective on shares of Applied Materials in a research note on Wednesday, October 14th. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $625.76.

Applied Materials Company Profile

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.