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Here’s What You Should Know Ahead of Applied Materials’ Upcoming Earnings Release

Here’s What You Should Know Ahead of Applied Materials’ Upcoming Earnings Release

101 finance101 finance2026/01/16 16:12
By:101 finance

Applied Materials: Company Overview and Earnings Outlook

Applied Materials, Inc. (AMAT), valued at $253 billion, is a leading global supplier of materials engineering solutions, equipment, services, and software for the semiconductor industry and related sectors. The company operates through its Semiconductor Systems and Applied Global Services (AGS) divisions, supporting the production of semiconductor wafers, chips, and various electronic components.

Upcoming Earnings and Analyst Expectations

Headquartered in Santa Clara, California, Applied Materials is preparing to release its financial results for the first quarter of fiscal 2026. Analysts anticipate an adjusted earnings per share (EPS) of $2.21, representing a 7.1% decrease from the $2.38 reported in the same quarter last year. Despite this projected dip, the company has surpassed Wall Street’s EPS forecasts for the previous four quarters.

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Future Earnings Projections

Looking ahead to fiscal 2026, analysts forecast that Applied Materials will achieve an adjusted EPS of $9.57, up 1.6% from the $9.42 expected for fiscal 2025. Projections for fiscal 2027 are even more optimistic, with adjusted EPS anticipated to rise by 19.44% year-over-year to $11.43.

Stock Performance

Over the past year, Applied Materials’ stock has surged by 78.9%, significantly outperforming the S&P 500 Index’s 16.7% gain and the 25.2% return posted by the State Street Technology Select Sector SPDR ETF (XLK) during the same period.

Recent Financial Highlights

Following the release of its Q4 2025 results on November 13, Applied Materials’ shares rose by 1.3%. The company reported adjusted EPS of $2.17 and revenue of $6.8 billion, both exceeding analyst expectations. For the full fiscal year, Applied Materials achieved record revenue of $28.37 billion and record adjusted EPS of $9.42, driven by robust demand for AI-related semiconductor technologies. Management’s guidance for Q1 2026 includes projected revenue of approximately $6.85 billion and adjusted EPS of $2.18, further boosting investor confidence.

Analyst Ratings and Price Targets

The consensus among analysts covering AMAT remains cautiously positive, with a “Moderate Buy” rating overall. Of the 36 analysts tracking the stock, 20 recommend a “Strong Buy,” four suggest a “Moderate Buy,” and 12 rate it as a “Hold.” At the time of writing, the stock is trading above the average analyst price target of $279.45.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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