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AMAT
AS OF
Mar 9, 04:59 PM (EDT)
Price
$339.02
Change
+$14.28 (+4.40%)
Capitalization
295.37B
66 days until earnings call
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AMAT
Stock ticker: NASDAQ
AS OF
Mar 9, 04:59 PM (EDT)
Price
$339.02
Change
+$14.28 (+4.40%)
Capitalization
295.37B

AMAT stock forecast, quote, news & analysis

Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world... Show more

AMAT
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published price charts
These past five trading days, the stock lost 0.00% with an average daily volume of 0 shares traded.The stock tracked a drawdown of 0% for this period. AMAT showed earnings on February 12, 2026. You can read more about the earnings report here.
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Applied Materials (AMAT) Q1 Fiscal 2026 Earnings Recap: Beats Estimates Amid AI-Driven Demand

Key Takeaways

  • Applied Materials reported Q1 FY2026 revenue of $7.01 billion, down 2% year-over-year but beating consensus estimates of $6.88 billion.
  • Non-GAAP diluted EPS came in at $2.38, flat year-over-year and surpassing expectations of $2.21 by 8%.
  • Non-GAAP gross margin expanded to 49.1%, up 20 basis points year-over-year, driven by services growth and pricing discipline.
  • Applied Global Services hit record revenue of $1.56 billion, up year-over-year, with margins improving to 34.4%.
  • Q2 FY2026 guidance calls for revenue of $7.65 billion (±$500 million) and non-GAAP EPS of $2.64 (±$0.20), signaling semiconductor equipment growth over 20% in calendar 2026.
  • Generated $1.69 billion in operating cash flow and returned $702 million to shareholders.

Earnings Context and Why It Matters

Applied Materials (AMAT), a leading provider of semiconductor manufacturing equipment, released its Q1 FY2026 results for the quarter ended January 25, 2026, amid robust AI infrastructure investments. This report is critical as it reflects early indicators of sustained demand in foundry, logic, and memory markets, particularly DRAM, which hit record levels. Investors watch closely for signs of margin resilience and capacity ramp-ups in the face of shifting product mixes and geopolitical tensions in chip supply chains. With AI driving over 20% expected growth in semiconductor equipment for calendar 2026, these results offer insights into AMAT's positioning in a trillion-dollar industry outlook.

Reported Results

Applied Materials delivered Q1 FY2026 revenue of $7.01 billion, a 2% decline from $7.17 billion in the prior year but exceeding analyst consensus of $6.88 billion and the upper end of company guidance ($6.85 billion ± $500 million). Non-GAAP diluted EPS matched last year's $2.38, topping estimates of $2.19-$2.21, while GAAP EPS rose 75% to $2.54. Non-GAAP gross margin improved to 49.1%, up 20 basis points year-over-year, supported by value-based pricing and cost efficiencies.

Semiconductor Systems revenue fell to $5.14 billion from $5.60 billion, with foundry/logic/other at 62% of mix (down from 69%) and DRAM rising to 34%, reflecting AI and memory recovery. Gross margin here expanded 100 basis points to 54.5% non-GAAP. Applied Global Services shone with $1.56 billion in revenue (up significantly) and 34.4% gross margin, a 210 basis point gain. For Q2, guidance points to revenue of $7.65 billion (±$500 million) and non-GAAP EPS of $2.64 (±$0.20), implying sequential growth fueled by AI demand.

Market Reaction and Investor Sentiment

AMAT shares surged in after-hours trading following the February 12 release, gaining around 9-10% initially on the earnings beat and upbeat AI outlook, reflecting optimism about semiconductor capacity expansions. Sentiment turned mixed into February 13, with some reports of a 3.4% pullback amid profit-taking near 52-week highs, as the revenue decline and flat non-GAAP EPS tempered enthusiasm despite guidance strength. Overall, investor focus remains on AI tailwinds offsetting near-term mix shifts.

Forward Outlook and Key Factors to Monitor

Applied Materials anticipates semiconductor equipment growth exceeding 20% in calendar 2026, driven by accelerating AI computing investments from leading foundries. CEO Gary Dickerson highlighted preparations to support higher demand, including nearly doubled system manufacturing capacity. Q2 guidance suggests sequential revenue uptick to $7.65 billion midpoint, with EPS expansion to $2.64, bolstered by favorable mix normalization and cost actions.

Investors should track DRAM and leading-edge logic demand signals, as book-to-bill remains near unity with an elevated backlog. Applied Global Services' record performance underscores recurring revenue stability amid equipment cyclicality. Margin trends warrant attention, with non-GAAP gross margins expected to improve via pricing and efficiencies, though operating margins faced pressure from R&D investments (up 8%). Broader factors include supply chain dynamics, U.S.-China trade policies impacting exports, and customer capex plans from hyperscalers. Cash generation remains robust at $1.69 billion in Q1 operations, supporting $702 million in returns and positioning AMAT for sustained capital allocation amid industry upcycle.

A.I.Advisor
a Summary for AMAT with price predictions
Mar 09, 2026

AMAT in upward trend: price may ascend as a result of having broken its lower Bollinger Band on March 06, 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 of 35 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 .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in of 310 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 253 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 10-day RSI Indicator for AMAT moved out of overbought territory on February 26, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Momentum Indicator moved below the 0 level on March 03, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In 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 .

The Moving Average Convergence Divergence Histogram (MACD) for AMAT turned negative on March 03, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .

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 .

Fundamental Analysis (Ratings)

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 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 66, placing this stock better than average.

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 (11.862) is normal, around the industry mean (9.669). P/E Ratio (33.307) is within average values for comparable stocks, (274.975). Projected Growth (PEG Ratio) (1.559) is also within normal values, averaging (2.007). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (9.242) is also within normal values, averaging (38.902).

A.I.Advisor
published Dividends

AMAT is expected to pay dividends on March 12, 2026

Applied Materials AMAT Stock Dividends
A dividend of $0.46 per share will be paid with a record date of March 12, 2026, and an ex-dividend date of February 19, 2026. The last dividend of $0.46 was paid on December 11. Read more...
A.I.Advisor
published Highlights

Notable companies

The most notable companies in this group are Applied Materials (NASDAQ:AMAT), Lam Research Corp (NASDAQ:LRCX), KLA Corp (NASDAQ:KLAC), Teradyne (NASDAQ:TER), Ambarella (NASDAQ:AMBA).

Industry description

The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.

Market Cap

The average market capitalization across the Electronic Production Equipment Industry is 44.91B. The market cap for tickers in the group ranges from 555.66K to 548.53B. ASMLF holds the highest valuation in this group at 548.53B. The lowest valued company is AVSR at 555.66K.

High and low price notable news

The average weekly price growth across all stocks in the Electronic Production Equipment Industry was -2%. For the same Industry, the average monthly price growth was 6%, and the average quarterly price growth was 70%. RNWEF experienced the highest price growth at 52%, while BESIY experienced the biggest fall at -20%.

Volume

The average weekly volume growth across all stocks in the Electronic Production Equipment Industry was -71%. For the same stocks of the Industry, the average monthly volume growth was -87% and the average quarterly volume growth was -74%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 28
Price Growth Rating: 43
SMR Rating: 68
Profit Risk Rating: 66
Seasonality Score: -36 (-100 ... +100)
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published General Information

General Information

a manufacturer of equipment and software for the semiconductor industries

Industry ElectronicProductionEquipment

Profile
Fundamentals
Details
Industry
Electronic Production Equipment
Address
3050 Bowers Avenue
Phone
+1 408 727-5555
Employees
34000
Web
https://www.appliedmaterials.com