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Key Takeaways
- Applied Materials announces Q3 fiscal 2026 financial results on August 13 following market close
- Wall Street forecasts earnings per share of $3.39 alongside revenue approaching $9 billion, marking 23% annual growth
- Shares have retreated from $740 year-to-date peak to approximately $539 current levels
- Street consensus stands at “Moderate Buy” with mean price objective of $603.23
- Chief Executive Gary Dickerson liquidated $14.7 million in shares during late June
Applied Materials (AMAT) will unveil its third-quarter fiscal 2026 financial performance following Thursday’s closing bell on August 13. Management has scheduled the earnings conference call for 4:30 PM Eastern Time.
Consensus estimates point toward earnings per share of $3.39 with revenue totaling approximately $9 billion. These figures would signal year-over-year revenue expansion of about 23%. The semiconductor equipment manufacturer has provided EPS guidance spanning $3.16 to $3.56.
AMAT stock currently changes hands near $539, substantially below its year-to-date summit of $739.67. This represents approximately a 27% decline from peak levels, technically entering localized bear market terrain.
The equity posted a 12-month floor of $154.46 and commands a market capitalization near $424 billion. Current valuation reflects a forward price-to-earnings multiple of 43.8, elevated compared to its five-year historical average of 21.18.
Previous quarterly results exceeded Wall Street projections. Earnings per share registered $2.86 against the $2.68 analyst consensus. Revenue totaled $7.91 billion, climbing 11.4% annually and surpassing the $7.68 billion forecast.
Q2 gross margin touched 50%, while operating income advanced 20% to $2.5 billion. The semiconductor systems segment generated $5.9 billion in sales, complemented by $1.66 billion from applied global services.
A concerning metric emerged in the prior report. Free cash flow plummeted to $210 million from $1.06 billion recorded in the comparable year-earlier period.
Wall Street Price Objectives
Analyst outlook entering the earnings announcement remains predominantly constructive. Overall consensus registers as “Moderate Buy” featuring an average price target of $603.23, suggesting approximately 12% potential appreciation from present trading levels.
Susquehanna elevated its objective from $575 to $900 while maintaining a “positive” stance. Wells Fargo increased its target to $740 accompanied by an “overweight” recommendation. Morgan Stanley adjusted its forecast upward to $647, though retained an “equal weight” designation.
Erste Group Bank represented the solitary downgrade, reducing its rating from “buy” to “hold.” Within MarketBeat’s compilation of 34 analysts, one assigns a Strong Buy, 26 carry Buy recommendations, and seven maintain Hold positions.
Executive Share Transactions
Chief Executive Gary Dickerson divested 20,000 shares at a mean execution 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 disposed of 278,088 shares valued at roughly $169.7 million throughout the preceding three-month window. Corporate insiders currently maintain 0.30% ownership. Institutional investors control 80.56%.
Applied Materials additionally announced a quarterly dividend distribution of $0.53 per share, scheduled for September 10 payment to shareholders recorded as of August 20.
The shares also featured on a documented short position list attributed to Michael Burry, who has expressed apprehension regarding possible market corrections. This development has contributed incremental negative sentiment surrounding AMAT alongside related semiconductor industry equities.
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