Applied Materials (NASDAQ:AMAT) Updates Q3 2026 Earnings Guidance

Applied Materials (NASDAQ:AMAT) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 3.160-3.560 for the period, compared to the consensus earnings per share estimate of 2.910. The company issued revenue guidance of $8.5 billion-$9.5 billion, compared to the consensus revenue estimate of $8.2 billion.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on AMAT. Sanford C. Bernstein reiterated an “outperform” rating on shares of Applied Materials in a research report on Friday. Barclays reiterated an “overweight” rating and issued a $500.00 price target on shares of Applied Materials in a research report on Friday. TD Cowen upped their price target on Applied Materials from $315.00 to $450.00 and gave the company a “buy” rating in a research report on Friday, February 13th. Seaport Research Partners began coverage on Applied Materials in a research report on Monday, May 4th. They issued a “buy” rating and a $500.00 price target on the stock. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Applied Materials in a research report on Friday. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials has an average rating of “Moderate Buy” and a consensus price target of $399.62.

Applied Materials Price Performance

Shares of AMAT stock opened at $440.56 on Friday. The stock’s fifty day moving average is $377.52 and its 200-day moving average is $318.62. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The stock has a market capitalization of $349.63 billion, a PE ratio of 45.09, a PEG ratio of 1.94 and a beta of 1.66. Applied Materials has a 52 week low of $153.47 and a 52 week high of $448.45.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business’s revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts expect that Applied Materials will post 11.16 EPS for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, May 21st. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is currently 18.83%.

Insider Transactions at Applied Materials

In other news, CFO Brice Hill sold 5,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer owned 138,565 shares in the company, valued at approximately $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Adam Sanders sold 534 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the sale, the chief accounting officer owned 4,625 shares in the company, valued at $1,753,615. The trade was a 10.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 12,003 shares of company stock worth $4,484,189. Insiders own 0.30% 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 beat Q2 estimates, with EPS of $2.86 and revenue of $7.91 billion, both above Wall Street forecasts, reinforcing that demand for semiconductor equipment remains strong. Article Title
• Positive Sentiment: The company raised guidance for Q3, with revenue outlook above consensus, signaling management expects AI and data-center spending to keep fueling orders. Article Title
• Positive Sentiment: Multiple reports highlighted record or near-record margins, suggesting Applied Materials is benefiting from strong operating leverage as AI-related demand scales. Article Title
• Positive Sentiment: Analysts turned more constructive after the report, including a TD Cowen reaffirmation of Buy and a higher price target, which can support the shares. Article Title
• Neutral Sentiment: Several previews and earnings-call coverage focused on the same core theme: investors are watching whether AI spending can offset softer China demand and export restrictions. Article Title
• Negative Sentiment: Despite the strong results, some reports noted the stock traded lower in premarket, suggesting profit-taking or heightened expectations after a steep rally may be limiting immediate upside. Article Title

Hedge Funds Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Applied Materials by 617.2% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock valued at $1,869,170,000 after acquiring an additional 7,856,576 shares during the period. Coatue Management LLC lifted its stake in shares of Applied Materials by 78.7% during the fourth quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider’s stock valued at $1,537,913,000 after acquiring an additional 2,635,284 shares during the period. Maverick Capital Ltd. acquired a new position in shares of Applied Materials during the fourth quarter valued at $290,727,000. Price T Rowe Associates Inc. MD lifted its stake in shares of Applied Materials by 18.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,384,256 shares of the manufacturing equipment provider’s stock valued at $1,383,701,000 after acquiring an additional 840,486 shares during the period. Finally, Janus Henderson Group PLC lifted its stake in shares of Applied Materials by 687.2% during the fourth quarter. Janus Henderson Group PLC now owns 830,219 shares of the manufacturing equipment provider’s stock valued at $213,280,000 after acquiring an additional 724,759 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.