Want to see AMAT full AI Analyst Report?
Top Page
Applied Materials
(NASDAQ:AMAT)
Select Model
Select Model
Rating:71Outperform
Price Target:
$530.00
▲(10.41% Upside)
Action:Reiterated
Date:08/28/26
AMAT scores well on financial performance and earnings outlook—driven by exceptional margins, solid balance sheet leverage, strong free cash flow, and upbeat Q4 growth guidance tied to AI/DRAM/packaging and services momentum. The overall score is held back by weaker near-term technical momentum and a demanding valuation (high P/E with a low dividend yield).
Positive Factors
Exceptional profitability and operating leverage
AMAT’s high and improving margins indicate strong process technology differentiation, favorable product mix, and cost discipline. This profitability supports reinvestment, shareholder returns, and resilience through semiconductor industry cycles.
Negative Factors
Moderating growth and semiconductor cyclicality
AMAT remains dependent on customers’ capital expenditure and technology-transition cycles. Moderating underlying revenue growth suggests a more mature and cyclical profile, which can create periods of uneven orders and utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability and operating leverage
AMAT’s high and improving margins indicate strong process technology differentiation, favorable product mix, and cost discipline. This profitability supports reinvestment, shareholder returns, and resilience through semiconductor industry cycles.
Read all positive factors
Applied Materials Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how sales are distributed across regions, revealing exposure to major semiconductor markets like China, Taiwan, Korea and the U.S.; geographic concentration highlights where demand and regulatory risk are greatest and where growth or slowdowns will most affect results.
Shows how sales are distributed across regions, revealing exposure to major semiconductor markets like China, Taiwan, Korea and the U.S.; geographic concentration highlights where demand and regulatory risk are greatest and where growth or slowdowns will most affect results.
Data provided by:
The Fly
The FlyApplied Materials (AMAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$363.78B
Dividend Yield0.45%
Average Volume (3M)7.44M
Price to Earnings (P/E)37.9
Beta (1Y)1.60
Revenue Growth7.77%
EPS Growth38.45%
CountryUS
Employees38,900
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)11.67
Shares Outstanding793,597,500
10 Day Avg. Volume6,578,993
30 Day Avg. Volume7,441,688
Financial Highlights & Ratios
PEG Ratio76.84
Price to Book (P/B)9.11
Price to Sales (P/S)6.56
P/FCF Ratio32.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$691.80Price Target Upside44.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering28
EPS Forecast (FY)12.81
Revenue Forecast (FY)$34.35B
Applied Materials Business Overview & Revenue Model
Company Description
Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to m...
How the Company Makes Money
Applied Materials primarily makes money by selling advanced manufacturing equipment and related solutions to semiconductor and electronics manufacturers, supplemented by recurring revenue from services, parts, and software that support its large i...
Applied Materials Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call emphasized numerous record metrics (revenue, operating profit, EPS), strong demand driven by AI (particularly in DRAM, leading-edge logic, and advanced packaging), expanding product pipeline and strategic EPIC partnerships, and robust cash generation and capacity investments. Near-term challenges include ramp-related costs that temper immediate margin expansion, display/mix effects, supply-chain/clean-room constraints, and some guidance uncertainty (wide Q4 range and no FQ1 guide). On balance, the positives—strong multi-segment growth, margin expansion to date, product momentum, and multi-year customer visibility—outweigh the lowlights.Positive Updates
Record Revenue and Strong Top-Line Growth
Fiscal Q3 revenue of $9.1B, up 15% sequentially and 25% year-over-year; fiscal Q4 guidance of $10.25B ± $0.5B, implying ~51% year-over-year growth.
Negative Updates
Near-Term Ramp Costs Pressure Margins
Despite strong revenue growth, company guided Q4 gross margin roughly flat at ~50.4% due in part to ramp-related headwinds (hiring/training manufacturing and support staff) and associated costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Fiscal Q3 revenue of $9.1B, up 15% sequentially and 25% year-over-year; fiscal Q4 guidance of $10.25B ± $0.5B, implying ~51% year-over-year growth.
Read all positive updates
Company Guidance
Applied guided fiscal Q4 revenue of $10.25 billion ± $0.5B (≈+51% YoY) and non‑GAAP EPS of $4.02 ± $0.20 (≈+85% YoY); by business they expect Semiconductor Systems ≈$7.9B (+62% YoY), Applied Global Services ≈$1.84B (+22% YoY) and Other ≈$510M (primarily display), while modeling Other at roughly $400M/quarter on average through 2027. They see Q4 non‑GAAP gross margin ≈50.4%, non‑GAAP operating expenses ≈$1.58B, a non‑GAAP tax rate of ~11% (rising to ~13% in 2027 for the global minimum tax), and reminded investors Q1 fiscal 2027 is a 14‑week quarter (driving a higher-than‑average step‑up in OpEx). They also reiterated broader cadence targets and drivers (growing faster than the market; AGS >20% in calendar 2026 with sustainable mid‑teens long‑term growth; process diagnostics & control >50% in 2026; packaging >70% in 2026) and noted recent cash metrics: record operating cash flow >$3B, capex $707M, free cash flow $2.3B, $420M dividends, $440M repurchases with $12.8B buyback authorization remaining and a plan to return 80–100% of free cash flow to shareholders.Applied Materials Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.84B | 28.37B | 27.18B | 26.52B | 25.79B | 23.06B |
| Gross Profit | 15.23B | 13.81B | 12.90B | 12.38B | 11.99B | 10.91B |
| EBITDA | 11.38B | 9.65B | 8.79B | 8.46B | 8.26B | 7.39B |
| Net Income | 9.27B | 7.00B | 7.18B | 6.86B | 6.53B | 5.89B |
Balance Sheet | ||||||
| Total Assets | 43.52B | 36.30B | 34.41B | 30.73B | 26.73B | 25.82B |
| Cash, Cash Equivalents and Short-Term Investments | 9.23B | 8.57B | 9.47B | 6.87B | 2.58B | 5.46B |
| Total Debt | 7.35B | 7.05B | 6.61B | 6.00B | 5.83B | 5.75B |
| Total Liabilities | 17.90B | 15.88B | 15.41B | 14.38B | 14.53B | 13.58B |
| Stockholders Equity | 25.63B | 20.41B | 19.00B | 16.35B | 12.19B | 12.25B |
Cash Flow | ||||||
| Free Cash Flow | 5.62B | 5.70B | 7.49B | 7.59B | 4.61B | 4.77B |
| Operating Cash Flow | 8.40B | 7.96B | 8.68B | 8.70B | 5.40B | 5.44B |
| Investing Cash Flow | -3.29B | -2.78B | -2.33B | -1.53B | -1.36B | -1.22B |
| Financing Cash Flow | -3.46B | -5.98B | -4.47B | -3.03B | -7.04B | -4.59B |
Applied Materials Technical Analysis
Negative
480.04
Price Trends
543.50
Negative
496.62
Negative
403.01
Positive
Market Momentum
-20.90
Positive
34.10
Neutral
4.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMAT, the sentiment is Negative. The current price of 480.04 is below the 20-day moving average (MA) of 502.74, below the 50-day MA of 543.50, and above the 200-day MA of 403.01, indicating a neutral trend. The MACD of -20.90 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 4.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMAT.
Applied Materials Risk Analysis
Applied Materials disclosed 24 risk factors in its most recent earnings report. Applied Materials reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may not continue to declare cash dividends or repurchase our shares. Q3, 2023
2.
We are exposed to cybersecurity threats and incidents. Q3, 2023
3.
We are exposed to ongoing changes specific to the semiconductor industry. Q3, 2023
Applied Materials Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $642.04B | 52.08 | 52.37% | 0.50% | 17.87% | 23.14% | |
71 Outperform | $363.78B | 37.86 | 40.44% | 0.36% | 7.77% | 38.45% | |
69 Neutral | $229.23B | 46.39 | 85.38% | 0.38% | 11.72% | 20.58% | |
67 Neutral | $13.11B | 95.66 | 6.50% | ― | 8.08% | -33.87% | |
66 Neutral | $377.26B | 50.12 | 66.97% | 0.34% | 26.02% | 38.85% | |
65 Neutral | $2.71B | 109.76 | 2.62% | ― | -2.52% | -64.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
AMAT
Applied Materials
438.46
283.07
182.17%
ASML
ASML Holding
1,682.30
949.59
129.60%
KLAC
KLA
172.26
88.32
105.23%
LRCX
Lam Research
288.32
191.12
196.62%
ONTO
Onto Innovation
254.55
151.89
147.95%
VECO
Veeco
43.02
19.43
82.37%
Applied Materials Corporate Events
Executive/Board Changes
Applied Materials Adds Qualcomm Executive to Board
Positive
Aug 27, 2026
On August 27, 2026, Applied Materials appointed Qualcomm Chief Financial Officer and Chief Operating Officer Akash Palkhiwala to its board of directors and audit committee, reflecting a move to deepen financial and operational expertise at the gov...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.