Zacks Research Issues Negative Outlook for AMAT Earnings

Applied Materials, Inc. (NASDAQ:AMAT) – Analysts at Zacks Research decreased their Q2 2026 earnings per share (EPS) estimates for shares of Applied Materials in a research report issued on Monday, October 21st. Zacks Research analyst R. Department now forecasts that the manufacturing equipment provider will post earnings of $2.56 per share for the quarter, down from their previous estimate of $2.57. The consensus estimate for Applied Materials’ current full-year earnings is $8.49 per share. Zacks Research also issued estimates for Applied Materials’ Q3 2026 earnings at $2.64 EPS and FY2026 earnings at $10.44 EPS.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $2.12 EPS for the quarter, beating analysts’ consensus estimates of $2.02 by $0.10. Applied Materials had a return on equity of 39.99% and a net margin of 27.74%. The firm had revenue of $6.78 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the prior year, the firm earned $1.90 earnings per share. Applied Materials’s revenue for the quarter was up 5.5% on a year-over-year basis.

Several other brokerages have also recently issued reports on AMAT. UBS Group decreased their price objective on Applied Materials from $220.00 to $210.00 and set a “neutral” rating for the company in a report on Thursday, September 12th. B. Riley decreased their price target on Applied Materials from $300.00 to $280.00 and set a “buy” rating for the company in a report on Friday, August 16th. Morgan Stanley lowered their price objective on Applied Materials from $224.00 to $185.00 and set an “equal weight” rating on the stock in a research report on Tuesday, September 17th. Wells Fargo & Company cut their target price on shares of Applied Materials from $260.00 to $235.00 and set an “overweight” rating for the company in a report on Thursday, October 3rd. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $250.00 price target on shares of Applied Materials in a report on Tuesday, October 8th. Eight equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $229.14.

Applied Materials Stock Down 0.8 %

NASDAQ:AMAT opened at $183.00 on Wednesday. The firm has a market capitalization of $151.52 billion, a P/E ratio of 21.03, a PEG ratio of 2.66 and a beta of 1.54. The company’s fifty day moving average price is $195.09 and its 200-day moving average price is $208.93. Applied Materials has a 1-year low of $129.21 and a 1-year high of $255.89. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.86 and a quick ratio of 2.09.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, November 21st. This represents a $1.60 annualized dividend and a yield of 0.87%. Applied Materials’s payout ratio is currently 18.39%.

Institutional Investors Weigh In On Applied Materials

Institutional investors and hedge funds have recently modified their holdings of the company. GAMMA Investing LLC increased its position in shares of Applied Materials by 89.3% in the second quarter. GAMMA Investing LLC now owns 8,988 shares of the manufacturing equipment provider’s stock valued at $2,121,000 after buying an additional 4,239 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Applied Materials by 5.7% in the second quarter. Sivia Capital Partners LLC now owns 2,338 shares of the manufacturing equipment provider’s stock valued at $552,000 after purchasing an additional 126 shares in the last quarter. Calton & Associates Inc. acquired a new stake in shares of Applied Materials in the first quarter valued at approximately $243,000. Avantax Advisory Services Inc. raised its position in shares of Applied Materials by 17.3% during the 1st quarter. Avantax Advisory Services Inc. now owns 23,949 shares of the manufacturing equipment provider’s stock worth $4,939,000 after purchasing an additional 3,529 shares during the last quarter. Finally, L & S Advisors Inc acquired a new stake in Applied Materials during the 2nd quarter valued at $3,069,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.