FY2027 Earnings Estimate for AMAT Issued By Erste Group Bank

Applied Materials, Inc. (NASDAQ:AMAT) – Analysts at Erste Group Bank upped their FY2027 earnings estimates for shares of Applied Materials in a research report issued to clients and investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now expects 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.

AMAT has been the topic of a number of other research reports. Susquehanna lifted their target price on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Seaport Research Partners reiterated a “buy” rating and issued a $575.00 price target (up from $500.00) on shares of Applied Materials in a research note on Friday, August 14th. Jefferies Financial Group raised their price target on Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a report on Friday, June 26th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $605.00 price objective (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. Finally, KeyCorp boosted their price objective on Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $640.20.

Applied Materials Stock Down 1.9%

Shares of AMAT stock opened at $497.53 on Tuesday. The company has a market capitalization of $394.84 billion, a price-to-earnings ratio of 42.89, a PEG ratio of 1.41 and a beta of 1.60. Applied Materials has a one year low of $203.40 and a one year high of $739.67. The company’s fifty day moving average price is $488.47 and its 200-day moving average price is $483.54. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. State Street Corp raised its stake in shares of Applied Materials by 85.4% during the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock worth $50,267,184,000 after acquiring an additional 32,018,892 shares in the last quarter. Bank of America Corp DE acquired a new stake in Applied Materials in the second quarter valued at approximately $5,252,863,000. Auto Owners Insurance Co boosted its stake in Applied Materials by 25,824.4% in the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after acquiring an additional 3,357,167 shares in the last quarter. Jupiter Topco LLC acquired a new stake in Applied Materials in the second quarter valued at approximately $1,512,287,000. Finally, Amundi grew its holdings in Applied Materials by 19.0% in the second quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider’s stock worth $5,645,344,000 after purchasing an additional 1,246,876 shares during the last quarter. 80.56% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, Director Judy Bruner sold 1,000 shares of the firm’s stock in a transaction 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 transaction, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Adam Sanders sold 725 shares of the firm’s stock in a transaction 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 transaction, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is owned by insiders.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date 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 is currently 18.28%.

Key Applied Materials News

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.