Applied Materials (NASDAQ:AMAT) Hits New 52-Week High Following Better-Than-Expected Earnings

Applied Materials, Inc. (NASDAQ:AMAT) shares hit a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $376.32 and last traded at $365.4140, with a volume of 5107368 shares. The stock had previously closed at $328.39.

The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.19 by $0.19. Applied Materials had a return on equity of 38.52% and a net margin of 27.78%.The business had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same period in the prior year, the firm earned $2.38 EPS. The business’s quarterly revenue was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be issued a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 annualized dividend and a dividend yield of 0.5%. Applied Materials’s payout ratio is 21.20%.

Applied Materials News Roundup

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AMAT. Royal Bank Of Canada set a $430.00 target price on shares of Applied Materials in a research note on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $450.00 price target on shares of Applied Materials in a report on Friday. Citigroup increased their price objective on Applied Materials from $400.00 to $420.00 and gave the stock a “buy” rating in a report on Friday. B. Riley Financial reaffirmed a “buy” rating on shares of Applied Materials in a research note on Monday. Finally, JPMorgan Chase & Co. boosted their price target on Applied Materials from $220.00 to $260.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. Twenty-eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $361.03.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total value of $952,960.00. Following the sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This trade represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 8,609 shares of company stock worth $2,044,898. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. FORA Capital LLC boosted its stake in Applied Materials by 40.7% in the 4th quarter. FORA Capital LLC now owns 12,969 shares of the manufacturing equipment provider’s stock worth $3,333,000 after purchasing an additional 3,751 shares during the period. Burton Enright Welch purchased a new stake in shares of Applied Materials in the fourth quarter valued at $335,000. Kestra Advisory Services LLC boosted its position in shares of Applied Materials by 20.6% in the fourth quarter. Kestra Advisory Services LLC now owns 108,779 shares of the manufacturing equipment provider’s stock worth $27,955,000 after buying an additional 18,609 shares during the period. Transamerica Financial Advisors LLC grew its holdings in shares of Applied Materials by 61.4% during the fourth quarter. Transamerica Financial Advisors LLC now owns 489 shares of the manufacturing equipment provider’s stock valued at $126,000 after buying an additional 186 shares in the last quarter. Finally, Maverick Capital Ltd. purchased a new position in shares of Applied Materials during the fourth quarter valued at $290,727,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Stock Up 8.1%

The firm has a 50-day moving average of $295.20 and a two-hundred day moving average of $236.38. The stock has a market capitalization of $281.70 billion, a price-to-earnings ratio of 36.33, a price-to-earnings-growth ratio of 2.92 and a beta of 1.70. The company has a quick ratio of 1.87, a current ratio of 2.61 and a debt-to-equity ratio of 0.32.

About Applied Materials

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.