Applied Materials (NASDAQ:AMAT) Announces Quarterly Earnings Results

Applied Materials (NASDAQ:AMAT) issued its quarterly earnings data on Thursday. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.17, Zacks reports. The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.

Applied Materials Trading Down 3.4%

Shares of NASDAQ AMAT traded down $11.49 during midday trading on Thursday, hitting $328.39. The stock had a trading volume of 8,918,352 shares, compared to its average volume of 8,175,018. The company has a fifty day moving average price of $292.28 and a 200 day moving average price of $234.59. The company has a market capitalization of $260.65 billion, a price-to-earnings ratio of 37.83, a PEG ratio of 2.92 and a beta of 1.70. Applied Materials has a 1-year low of $123.74 and a 1-year high of $344.60. The company has a quick ratio of 1.87, a current ratio of 2.61 and a debt-to-equity ratio of 0.32.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. Applied Materials’s payout ratio is currently 21.20%.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total value of $952,960.00. Following the completion of the sale, the senior vice president owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 8,609 shares of company stock worth $2,044,898 in the last 90 days. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several large investors have recently modified their holdings of AMAT. Brighton Jones LLC boosted its holdings in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after purchasing an additional 2,771 shares during the period. Schnieders Capital Management LLC. lifted its position in shares of Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after buying an additional 3,469 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Applied Materials by 26.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after buying an additional 679 shares during the period. Seldon Capital LP acquired a new position in shares of Applied Materials in the 2nd quarter valued at about $206,000. Finally, Promethium Advisors LLC bought a new stake in shares of Applied Materials during the 4th quarter valued at about $206,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials News Summary

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

• Positive Sentiment: Company reached a settlement with the U.S. Department of Commerce that closes the export probe and triggers DOJ/SEC closures — removing a regulatory overhang that had weighed on sentiment. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Positive Sentiment: New tool launches (Viva, Sym3 Z Magnum, Spectral ALD) position AMAT to capture 2nm/GAA and AI-driven capex cycles — supports medium- to long-term revenue and market-share upside. Applied Materials Unveils Transistor and Wiring Innovations for Faster AI Chips
• Positive Sentiment: Wall Street remains constructive: several firms have reiterated buys/raised targets (including recent upgrades and a B. Riley target lift to $400), which underpins upside expectations if guidance and orders look strong. B. Riley Raises Applied Materials Price Target to $400
• Neutral Sentiment: High expectations heading into tonight’s Q1 report: analysts and traders expect demand signals for AI-related capex; a beat should reinforce the rally, but even a modest miss could trigger outsized volatility because the bar is elevated. How to Read Applied Materials Earnings: What Signals Move the Stock?
• Neutral Sentiment: Social and options chatter is focused on whether order flow will confirm a H2 2026 inflection (TSMC/Intel ramps). That narrative can amplify intraday moves around guidance and bookings commentary. Applied Materials Stock Opinions on Upcoming Earnings Report
• Negative Sentiment: Analyst/short-term criticism on valuation: Lynx and some market commentators flagged stretched multiples heading into earnings, which appears to have triggered pre-earnings profit-taking. Applied Materials stock falls ahead of earnings as Lynx sounds caution
• Negative Sentiment: The $252.5M settlement is a material one-time cash hit and highlights compliance shortcomings — a near-term P&L/cash-flow impact and a potential governance question for some investors. Applied Materials to pay $252 million to resolve illegal chip exports, US says
• Negative Sentiment: Recent insider sales have been reported, which some investors view as a modest negative signal amid stretched valuations and near-term uncertainty. Applied Materials Stock Opinions on Upcoming Earnings Report

Analysts Set New Price Targets

Several research firms have recently commented on AMAT. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $310.00 target price on shares of Applied Materials in a report on Friday, January 9th. BNP Paribas Exane raised Applied Materials to a “hold” rating in a research note on Monday, November 17th. Jefferies Financial Group lifted their price target on Applied Materials from $260.00 to $360.00 and gave the company a “buy” rating in a research note on Monday, December 15th. Morgan Stanley increased their price objective on Applied Materials from $273.00 to $364.00 and gave the stock an “overweight” rating in a research report on Monday, February 2nd. Finally, Mizuho set a $370.00 target price on shares of Applied Materials and gave the stock an “outperform” rating in a research report on Tuesday, January 27th. Twenty-four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $315.15.

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.