GET DAILY SIGNALSApplied Materials (AMAT) Delivers Record Results as AI Demand Accelerates
Key Takeaways
- Applied Materials reported fiscal fourth-quarter 2026 revenue of $10.41 billion, up 53% year over year, wrapping up a record fiscal year.
- Non-GAAP (adjusted) earnings per share rose 92% to $4.16, while GAAP diluted EPS came in at $3.40.
- Full-year fiscal 2026 revenue reached $34.45 billion, up 21%, with non-GAAP EPS of $12.89, a 37% increase.
- Management issued first-quarter fiscal 2027 revenue guidance of $11.1 billion (±$500 million) and adjusted EPS of $4.15 to $4.55, reflecting continued AI-driven demand.
- The company generated $3.30 billion in cash from operations and returned $2.42 billion to shareholders through buybacks and dividends.
- For more context on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore these additional pages for deeper, up-to-date analysis.
- Discover automated trading ideas and market signals by exploring Trending AI Robots.
Earnings Context and Why It Matters
Applied Materials stands as one of the largest suppliers of semiconductor manufacturing equipment, and its results provide a useful gauge for capital spending trends across the chip industry. Because its tools support nearly every stage of chip production, the quarterly numbers offer investors a timely view of demand for AI accelerators, memory chips, and advanced logic processors. The fiscal fourth quarter also closes out the full fiscal year, so this report helps assess annual momentum and the path for wafer-fab equipment spending into the year ahead.
Reported Results
For the fourth quarter of fiscal 2026, ended October 25, 2026, AMAT posted revenue of $10.41 billion, an increase of 53% from $6.80 billion in the prior-year period. Non-GAAP earnings per share reached $4.16, up 92% from $2.17 a year earlier, while GAAP diluted EPS was $3.40. Non-GAAP gross margin improved to 50.6%, and the company recorded a record $2.62 billion in non-GAAP free cash flow for the quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Results aligned closely with or slightly exceeded consensus estimates from major data providers, which generally pointed to around $10.3 billion in revenue and $4.06 in adjusted EPS. Segment performance was led by Semiconductor Systems, with revenue of roughly $7.99 billion, up about 64% year over year, while Applied Global Services grew to about $1.90 billion.
Looking ahead, management guided first-quarter fiscal 2027 revenue to $11.1 billion, plus or minus $500 million, and adjusted EPS to a range of $4.15 to $4.55 — a midpoint above most pre-report consensus figures.
Market Reaction and Investor Sentiment
Shares of AMAT showed a muted but choppy response right after the report. The stock initially moved higher in after-hours trading, briefly reaching around $389, before pulling back and settling modestly lower near $380, according to post-market data. The mixed tone reflected a quarter with strong headline growth and an upbeat guidance midpoint, even as some investors considered whether the current pace of AI-driven equipment demand can be sustained. Sentiment heading into the print had been positive, with shares up significantly on the year, and attention centered on forward guidance and signals about memory-chip and advanced-logic spending into fiscal 2027.
Forward Outlook and Key Factors to Monitor
AMAT enters fiscal 2027 with clear momentum, and management’s guidance points to continued sequential revenue growth supported by AI-related semiconductor demand. Several factors will be worth watching in the quarters ahead.
First, the makeup of demand matters. Memory — particularly DRAM used in AI systems — has grown as a share of Semiconductor Systems revenue, and any shift in memory manufacturers’ capital spending plans could influence results. Second, gross margin trends will remain in focus as the company balances a richer product mix against supply-chain and input costs.
Third, regional exposure stays on the radar. AMAT derives significant revenue from China and other Asian markets, so changes in export controls, trade policy, or customer purchasing patterns could affect order trends. Fourth, the company’s guidance for calendar 2026 semiconductor systems revenue growth of more than 40% provides a benchmark that analysts will test against actual bookings and backlog over the coming quarters.
Finally, free cash flow and capital returns will stay in focus. With record operating cash flow and an expanded buyback, the company has signaled confidence in its balance sheet, but sustaining those returns will depend on converting robust demand into durable profitability.
Using Tickeron’s AI Tools in My Research
In my analysis of semiconductor names like AMAT, I often turn to Tickeron’s AI Screener to quickly filter for technical patterns, fundamentals, and AI-driven signals across the sector. It helps surface comparable stocks and valuation metrics without manual effort, which adds useful context when evaluating earnings momentum and sector trends.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AMAT in upward trend: price may jump up because it broke its lower Bollinger Band on November 05, 2026
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 34 cases where AMAT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AMAT's RSI Oscillator exited the oversold zone, 24 of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 44 of 55 cases where AMAT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for AMAT just turned positive on November 11, 2026. Looking at past instances where AMAT's MACD turned positive, the stock continued to rise in 36 of 46 cases over the following month. The odds of a continued upward trend are 78%.
Following a +6.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 250 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In 50 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
AMAT moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMAT crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
The 50-day moving average for AMAT moved below the 200-day moving average on November 09, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
The Aroon Indicator for AMAT entered a downward trend on November 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 25 (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 PE Growth Rating for this company is 39 (best 1 - 100 worst), pointing to consistent 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 Seasonality Score of 50 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating steady 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 Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (10.304) is normal, around the industry mean (5.670). P/E Ratio (28.486) is within average values for comparable stocks, (68.795). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
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General Information
a manufacturer of equipment and software for the semiconductor industries
Industry ElectronicProductionEquipment
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