Applied Materials (NASDAQ:AMAT) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Applied Materials (NASDAQ:AMAT) issued its quarterly earnings results on Thursday. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18, Zacks reports. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the company earned $2.39 earnings per share. Applied Materials updated its Q3 2026 guidance to 3.160-3.560 EPS.

Here are the key takeaways from Applied Materials’ conference call:

• Applied Materials reported record Q2 fiscal 2026 revenue and earnings, with revenue of $7.91 billion and non-GAAP EPS of $2.86, while gross margin reached a more-than-25-year high of 50%.
• Management said AI demand is accelerating and diversifying, and now expects the semiconductor equipment business to grow more than 30% in calendar 2026, with strong visibility extending into 2027 and beyond.
• The company highlighted strong leadership in the highest-growth areas of the market, especially leading-edge foundry logic, DRAM, and advanced packaging, which it expects to account for more than 80% of WFE spending growth in 2026 and a similar mix in 2027.
• Applied raised its outlook for Applied Global Services, saying the business should grow at a mid-teens annual rate over time and potentially higher this year as installed base growth, higher utilization, and AI-enabled service tools lift demand.
• Q3 guidance was strong, with company revenue expected at $8.95 billion and non-GAAP EPS at $3.36, both implying significant year-over-year growth and continued margin expansion.

Applied Materials Trading Up 0.9%

Shares of AMAT stock traded up $3.95 during trading hours on Thursday, reaching $440.56. 14,603,213 shares of the stock traded hands, compared to its average volume of 7,312,846. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $349.63 billion, a PE ratio of 45.09, a PEG ratio of 1.91 and a beta of 1.66. Applied Materials has a 1-year low of $153.47 and a 1-year high of $448.45. The business has a fifty day moving average price of $375.73 and a 200 day moving average price of $317.13.

Applied Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is an increase from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s payout ratio is 21.70%.

Insider Activity

In other news, Director Judy Bruner sold 3,969 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the transaction, the director owned 28,589 shares in the company, valued at $10,778,624.78. This represents a 12.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total value of $1,806,050.00. Following the transaction, the chief financial officer owned 138,565 shares in the company, valued at approximately $50,051,063.65. This trade represents a 3.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 12,003 shares of company stock worth $4,484,189. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Institutional investors have recently modified their holdings of the business. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the fourth quarter worth about $26,000. Triumph Capital Management bought a new position in shares of Applied Materials in the 3rd quarter valued at about $38,000. Swiss RE Ltd. acquired a new position in Applied Materials during the fourth quarter valued at approximately $75,000. Rakuten Securities Inc. grew its stake in Applied Materials by 38.9% in 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 in the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new position in Applied Materials during the fourth quarter worth $81,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials reported better-than-expected Q2 results, with EPS and revenue both topping analyst forecasts, signaling healthy demand for its chip-making tools. Applied Materials (AMAT) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company issued third-quarter guidance above expectations for both EPS and revenue, reinforcing confidence that AI-related spending will keep driving growth. Applied Materials sees upbeat quarterly revenue on sustained AI spending
• Positive Sentiment: Management highlighted record quarterly performance and ongoing strength in AI computing infrastructure buildout, which supports the bullish stock reaction. Applied Materials delivers record quarter and stronger-than-expected outlook
• Positive Sentiment: Recent analyst price-target increases and multiple Buy/Overweight ratings added to momentum ahead of and after earnings. Citi massively revamps Applied Materials stock price target
• Neutral Sentiment: Investors were already expecting a big move into earnings, with options markets pricing in elevated volatility around the report. Applied Materials Last-Minute Q2 Earnings Alert
• Neutral Sentiment: Analysts and media continued to frame AMAT as a key AI infrastructure beneficiary, keeping sentiment constructive without adding new company-specific news. How Applied Materials (AMAT) Is Deepening Its Role in AI Chip Manufacturing
• Negative Sentiment: Some investors remain cautious because growth in China has been slowing and export restrictions could continue to pressure demand in certain segments. Applied Materials’ Coming AI Boom Comes Under the Microscope as It Reports Earnings

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on AMAT shares. Sanford C. Bernstein reiterated an “outperform” rating and issued a $425.00 target price on shares of Applied Materials in a research report on Friday, February 13th. Zacks Research lowered shares of Applied Materials from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Royal Bank Of Canada reiterated an “outperform” rating and set a $500.00 price objective on shares of Applied Materials in a research note on Tuesday. Mizuho upped their target price on Applied Materials from $370.00 to $410.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. Finally, KGI Securities upgraded Applied Materials to an “outperform” rating and set a $425.00 price target on the stock in a research report on Friday, February 13th. Twenty-eight investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $384.52.

About Applied Materials

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.