Applied Materials (AMAT, $104.70) beats Q4 earnings expectations
Applied Materials posted fourth quarter earnings that surpassed analysts’ expectations.
The chip equipment company’s adjusted earnings came in at $2.03 a share for the October quarter, beating the consensus of $1.73 (based on FactSet survey). Revenue of $6.75 billion also topped analysts’ expectations of $6.45 billion.
Applied Materials’ Semiconductor Systems segment generated sales of $5.04 billion (~75% of overall net sales), up +17% year-over-year. Applied Global Services sales rose +4% year-over-year to $1.42 billion (21% of net sales), while Display and Adjacent Markets revenue fell -40% year-over-year to $251 million (4% of net sales).
Sales in the US climbed 23.3% year-over-year, while those in Europe were up 13.3%. Korea and Taiwan had +7.8% increase and +66.8% rise respectively. Southeast Asia sales were up +120%. Sales in Japan slipped -1.1%, and those in China plunged -35% from the year-ago quarter.
The non-GAAP gross margin contracted -220 basis points to 46%. Non-GAAP operating margin of 29.8% was 330 bps narrower vs. the year-ago quarter’s figure.
For first-quarter fiscal 2023, Applied Materials projects net sales of $6.7 billion (+/-$400 million), higher than The Zacks Consensus Estimate of $6.38 billion. Guidance for non-GAAP earnings per share is $1.93 (+/-0.18) vs. The Zacks Consensus Estimate of $1.91.
AMAT's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for AMAT turned positive on November 26, 2025. Looking at past instances where AMAT's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2025. You may want to consider a long position or call options on AMAT as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 227 cases where AMAT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMAT broke above its upper Bollinger Band on November 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.756) is normal, around the industry mean (7.881). P/E Ratio (28.865) is within average values for comparable stocks, (49.805). Projected Growth (PEG Ratio) (2.167) is also within normal values, averaging (2.095). Dividend Yield (0.007) settles around the average of (0.011) among similar stocks. P/S Ratio (7.117) is also within normal values, averaging (37.258).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of equipment and software for the semiconductor industries
Industry ElectronicProductionEquipment
Advertisement