Applied Materials Inc.

Applied Materials Inc.

AMAT

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Market Cap$489.96B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Applied Materials Inc.Applied Materials Inc.57.70.31%36%17.80.3

Earnings Call Q2 2026

May 14, 2026 - AI Summary

Record quarter + margin strength (best headline): Applied delivered record Q2 fiscal 2026 revenue of $7.91B (+13% sequential, +11% YoY). Non-GAAP gross margin ~50% (+80 bps YoY) and non-GAAP operating margin 32.1% (+140 bps YoY). Non-GAAP EPS $2.86 (+20% YoY). Management emphasized this as their highest gross margin in 25+ years (and continued portfolio “enrichment” driving pricing/value).
Big demand tailwinds + what drives them (opportunity): CEO Gary Dickerson attributes momentum to (1) rapid build-out of AI computing infrastructure, (2) Applied’s leadership in the highest-value nodes: leading-edge foundry logic, DRAM, and advanced packaging, and (3) strong execution in operations/supply chain. He highlighted AI adoption accelerating/diversifying: token generation up sharply; agentic AI growing, which increases CPU intensity and raises demand for DRAM/NAND—a further lever for wafer fab equipment spending.
Forecasts / guidance (strong but not unlimited): CFO Brice Hill guided Q3 fiscal (14-week quarter) to revenue $8.95B ± $500M (~+23% YoY), non-GAAP EPS $3.36 ± $0.20 (~+36% YoY), with gross margin ~50.1% (modest improvement). Segment expectations: Semiconductor Systems ~ $6.9B, AGS ~ $1.75B, Other ~ $300M. For the calendar year 2026, management now expects semiconductor equipment to grow >30% YoY, with leading-edge foundry logic + DRAM + advanced packaging comprising >80% of YoY WFE growth.

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$535.89

Target Price by Analysts

16.3% downsideApplied Materials Target Price DetailsTarget Price
$156.13

Current Fair Value

75.6% downside

Overvalued by 75.6% based on the discounted cash flow analysis.

Share Statistics

Market cap$489.96 Billion
Enterprise Value$490.82 Billion
Dividend Yield$1.91 (0.31%)
Earnings per Share$8.71
Beta1.67
Outstanding Shares794,000,000

Return

Return on Equity35.58%ROE
Return on Assets21.12%
Return on Invested Capital29.90%

Valuation & Multiples

P/E Ratio57.73P/E Ratio
PEG184.4PEG
Price to Sales17.78Price to Sales
Price to Book Ratio21.34Price to Book Ratio
Enterprise Value to Revenue16.91
Enterprise Value to EBIT52.46
Enterprise Value to Net Income57
Total Debt to Enterprise0.01
Debt to Equity0.3Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 21, 2026
EPS Estimate
$2.66
Average shareholder expectation
Revenue Estimate
$7.66 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 13, 2026
EPS Estimate
$3.35
Average shareholder expectation
Revenue Estimate
$8.98 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9391 21.21%
Total Calls10,983,646 7.10%
Total Puts10,315,099 24.22%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %78.95% 1.35%
Total Invested$213.36B 26.64%
Investors Holding3,034 291.00%

ESG Score

No data

About Applied Materials Inc.

CEO: Gary Dickerson

Relevant Senate Committees

Joint Committee on Taxation

This committee provides technical expertise and revenue estimates for all tax legislation, directly influencing corporate tax structures, capital investment credits, and the overall fiscal environment for Applied Materials.

Finance

This committee controls taxation and trade policy. Decisions on corporate tax rates, R&D credits, investment incentives, and tariffs directly impact Applied Materials' profitability, capital expenditure, and global market access.

Appropriations

This committee directly allocates federal spending, including funds for defense programs, scientific research, and potential semiconductor manufacturing incentives, which can directly affect demand and investment in Applied Materials' equipment.

Armed Services

This committee authorizes the annual NDAA and oversees defense spending, which heavily influences demand for advanced semiconductors and secure domestic supply chains, directly impacting the market for Applied Materials' equipment.

Select Committee on Intelligence

Members receive classified briefings on global threats and technology competition. Given semiconductors' critical role in national security and geopolitical strategy, this committee could possess highly material non-public information affecting Applied Materials.

Commerce, Science, and Transportation

This committee has significant oversight over interstate commerce, science, and technology policy, including initiatives like the CHIPS Act, which directly impacts funding, research, and the regulatory environment for the semiconductor industry, directly affecting Applied Materials.

Foreign Relations

Foreign policy, sanctions, and trade agreements directly impact Applied Materials' global sales, supply chains, and ability to export advanced semiconductor manufacturing equipment, especially given geopolitical tensions around technology.