Key Takeaways
- Applied Materials will announce Q3 fiscal 2026 financial results following Thursday’s market close on August 13
- Wall Street forecasts earnings per share of $3.39 with approximately $9 billion in revenue, marking 23% annual growth
- Shares have retreated from $740 year-to-date peak to roughly $539 currently
- The consensus analyst recommendation stands at “Moderate Buy” with a mean price objective of $603.23
- Chief Executive Gary Dickerson liquidated $14.7 million in company shares during late June
Applied Materials (AMAT) plans to unveil its third-quarter fiscal 2026 financial performance following Thursday’s closing bell on August 13. Management will host a conference call at 4:30 PM Eastern Time to discuss the results.
Financial analysts are projecting earnings per share of $3.39 alongside approximately $9 billion in quarterly revenue. This revenue figure would mark year-over-year expansion of about 23%. The company’s own guidance suggests EPS between $3.16 and $3.56.
AMAT stock currently changes hands near $539, representing a significant retreat from its year-to-date peak of $739.67. This decline of approximately 27% from the summit places the semiconductor equipment maker in technical bear market territory.
The shares touched a 12-month floor of $154.46 and command a market capitalization near $424 billion. The forward price-to-earnings multiple stands at 43.8, elevated compared to its five-year historical average of 21.18.
During the previous quarter, Applied Materials exceeded Wall Street projections. Earnings per share reached $2.86, surpassing the $2.68 consensus estimate. Quarterly revenue totaled $7.91 billion, representing 11.4% year-over-year advancement and exceeding the $7.68 billion forecast.
The company achieved a 50% gross margin in Q2, while operating income climbed 20% to reach $2.5 billion. The semiconductor systems segment generated $5.9 billion in sales, complemented by $1.66 billion from the applied global services division.
However, one metric raised concerns. Free cash flow plummeted to $210 million from $1.06 billion during the comparable period last year.
Wall Street Price Targets
Street sentiment approaching the earnings release remains largely constructive. The aggregate rating registers as “Moderate Buy” featuring a mean price objective of $603.23, suggesting approximately 12% appreciation potential from present levels.
Susquehanna upgraded its price target from $575 to $900 while maintaining a “positive” stance. Wells Fargo elevated its objective to $740 accompanied by an “overweight” recommendation. Morgan Stanley adjusted its target upward to $647, though maintaining an “equal weight” position.
Erste Group Bank represented the sole downgrade, reducing its rating from “buy” to “hold.” Within the group of 34 analysts monitored by MarketBeat, one maintains a Strong Buy designation, 26 carry Buy recommendations, and seven assign Hold ratings.
Recent Insider Transactions
Chief Executive Gary Dickerson divested 20,000 shares at a mean price of $735.22 on June 30, generating proceeds of $14.7 million. Senior Vice President Timothy Deane offloaded 8,621 shares at $590.76 on June 15, valued at approximately $5.1 million.
Collectively, company insiders have sold 278,088 shares totaling approximately $169.7 million during the preceding three-month period. Corporate insiders maintain ownership of 0.30% of outstanding shares. Institutional investors control 80.56%.
Applied Materials additionally announced a quarterly dividend payment of $0.53 per share, scheduled for distribution on September 10 to stockholders registered as of August 20.
The stock also surfaced on a disclosed short position list attributed to Michael Burry, who has voiced apprehensions regarding a prospective market correction. This development has contributed additional downward pressure on investor sentiment surrounding AMAT and related semiconductor stocks.
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