Research Analysts Offer Predictions for AMAT FY2026 Earnings

Applied Materials, Inc. (NASDAQ:AMAT) – Analysts at Erste Group Bank increased their FY2026 earnings per share (EPS) estimates for Applied Materials in a report issued on Friday, June 5th. Erste Group Bank analyst S. Lingnau now expects that the manufacturing equipment provider will post earnings per share of $12.20 for the year, up from their previous forecast of $11.12. Erste Group Bank has a “Buy” rating on the stock. The consensus estimate for Applied Materials’ current full-year earnings is $12.02 per share. Erste Group Bank also issued estimates for Applied Materials’ FY2027 earnings at $16.29 EPS.

AMAT has been the subject of several other reports. Seaport Research Partners began coverage on Applied Materials in a research report on Monday, May 4th. They set a “buy” rating and a $500.00 price target for the company. Argus raised their price target on Applied Materials from $420.00 to $500.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Wolfe Research raised their price target on Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Needham & Company LLC raised their price target on Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Finally, Wells Fargo & Company raised their price target on Applied Materials from $435.00 to $520.00 and gave the stock an “overweight” rating in a research report on Friday, May 15th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and a consensus target price of $483.03.

Applied Materials Price Performance

AMAT stock opened at $552.64 on Friday. The business has a fifty day moving average of $422.95 and a two-hundred day moving average of $351.11. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market cap of $438.77 billion, a price-to-earnings ratio of 51.89, a price-to-earnings-growth ratio of 1.39 and a beta of 1.67. Applied Materials has a 52-week low of $154.46 and a 52-week high of $557.62.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of AMAT. Private Wealth Management Group LLC lifted its holdings in Applied Materials by 4.9% during the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after buying an additional 25 shares during the last quarter. One Day In July LLC increased its position in shares of Applied Materials by 2.4% during the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. increased its position in shares of Applied Materials by 1.3% during the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares in the last quarter. Horst & Graben Wealth Management LLC increased its position in shares of Applied Materials by 2.1% during the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after purchasing an additional 27 shares in the last quarter. Finally, Warther Private Wealth LLC increased its position in shares of Applied Materials by 1.5% during the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after purchasing an additional 28 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 268 shares of Applied Materials stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total value of $116,370.96. Following the completion of the transaction, the chief accounting officer directly owned 4,280 shares in the company, valued at approximately $1,858,461.60. This trade represents a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Judy Bruner sold 1,128 shares of Applied Materials stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the completion of the transaction, the director owned 26,544 shares of the company’s stock, valued at approximately $11,944,800. This trade represents a 4.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 53,896 shares of company stock valued at $27,135,121. 0.30% of the stock is currently owned by company insiders.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is 19.91%.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for Applied Materials, now expecting $12.20 EPS for FY2026 and $16.29 EPS for FY2027, well above the current consensus of $12.02 for this year. The firm kept a Buy rating, reinforcing the view that earnings momentum remains strong. Applied Materials earnings estimate upgrade
• Positive Sentiment: Barclays reiterated an Overweight rating, and several other firms recently lifted price targets, signaling continued Wall Street confidence in Applied Materials’ role in the AI-driven chip equipment cycle. Barclays bullish on Applied Materials
• Positive Sentiment: Recent commentary highlighted Applied Materials as a top HBM/AI infrastructure stock, while its Singapore expansion and broader semiconductor capex outlook support the case for longer-term revenue growth. Applied Materials AI and HBM demand article
• Neutral Sentiment: Broader markets were strong on Thursday, which may also have helped sentiment toward cyclical semiconductor names like AMAT. Market rally article
• Negative Sentiment: One recent note mentioned that investors were weighing the company’s $500 million Singapore expansion, which could pressure near-term margins or cash flow even as it supports future demand. Singapore expansion cost article

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.