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For the fiscal second quarter, AMAT expects revenues of $7.65 billion (+/- $500 million). The Zacks Consensus Estimate for revenues is pegged at $7.69 billion, suggesting an increase of 8.4% from the year-ago quarter’s reading.
Applied Materials projects non-GAAP earnings per share of $2.64 (+/- $0.20). The Zacks Consensus Estimate for earnings is pegged at $2.68 per share, indicating an increase of 12.1% from the year-ago quarter’s reported figure. The figure has been revised upward in the past seven days.
Image Source: Zacks Investment Research
AMAT has an impressive earnings surprise history. AMAT beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 5.24%.
Our proven model predicts an earnings beat for AMAT this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.77 per share) and the Zacks Consensus Estimate ($2.68 per share), is +3.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Applied Materials’ second quarter of fiscal 2026 results are expected to benefit from the rapid expansion of AI infrastructure and the increasing complexity of semiconductor manufacturing. Traction in high-margin product lines like leading-edge logic, high-bandwidth memory (HBM) DRAM and advanced packaging is likely to support AMAT’s results in the to-be-reported quarter.
Continued traction in AMAT’s wafer equipment manufacturing products is likely to have helped its semiconductor systems business grow rapidly in the to-be-reported quarter. Applied Materials is also gaining traction in its complex chip stacking architectures, boosting demand for deposition, conductor etch and eBeam technologies. This is likely to have persisted in the to-be-reported quarter.
Applied Materials has also been experiencing strong momentum from gate-all-around transistor adoption and advanced packaging for the past few quarters. This traction is likely to have persisted in the to-be-reported quarter. AMAT’s Applied Global Services business is expected to have benefited from rising fab utilization, increasing software and diagnostics intensity, and recurring service revenues.
AMAT’s flash memory or NAND sales nearly doubled to $1.41 billion in fiscal 2025. Although AMAT has a lower market share in the NAND space, it is gaining prominence. The growth trend is likely to have persisted in the to-be-reported quarter, supporting AMAT’s top-line growth. Furthermore, AMAT’s innovative businesses, comprising Epi, PVD, Implant, CMP and RTP, boast high market share and unique capabilities, which are also an added advantage.
Applied Materials’ Price Performance & Valuation
Applied Materials shares have gained 69.4% year to date, outperforming the Zacks Electronics – Semiconductors industry’s growth of 41.5%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
Let us now look at the value Applied Materials offers to its investors at current levels. AMAT is currently trading at a premium with a forward 12-month price-to-sales (P/S) of 9.89X compared with the industry’s 9.50X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for AMAT Stock
Applied Materials competes with KLA Corporation (KLAC - Free Report) , Lam Research (LRCX - Free Report) and Camtek (CAMT - Free Report) in the WFE and testing market. Applied Materials and KLA Corporation offer similar solutions, such as Wafer Inspection, Yield Enhancement and Process Control inspection systems, while Camtek stands at the forefront of semiconductor inspection and metrology solutions.
Camtek is focused on high-performance computing modules, advanced packaging and silicon carbide technologies. Lam Research develops Atomic Layer Deposition tools like AT200M, AT410 and AT650P that are similar to the devices made by Applied Materials. While Camtek, Lam Research and KLA Corporation overlap with Applied Materials, AMAT’s broad product portfolio enables it to seamlessly integrate its equipment across multiple processes.
Applied Materials’ integration of equipment across multiple processes reduces reliance on any single technology cycle and enables it to price its product stack better to protect margins. Moreover, AMAT’s DRAM offerings are gaining traction as customers are aggressively investing in 6F² nodes supported by rising demand for high bandwidth memory DRAM, driven by AI workloads.
On its first-quarter 2026 earnings call, AMAT highlighted its record growth in both Logic and DRAM segments, driven by major semiconductor transitions. Applied Materials expects future generations of HBM to adopt hybrid bonding, and in the hybrid bonding space, AMAT is one of the leading innovators. AMAT’s advanced packaging, particularly 3D chiplet stacking, is another structural tailwind as AI chips become more heterogeneous.
Conclusion: Buy AMAT Stock Now
Applied Materials is likely to benefit from traction across wafer equipment manufacturing and advanced packaging products. New product introductions like Epi, PVD, Implant, CMP and RTP will add to the long-term value of the company. Given these factors, AMAT is worth investing in right now.
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AMAT to Post Q2 Earnings: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Applied Materials (AMAT - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 14.
For the fiscal second quarter, AMAT expects revenues of $7.65 billion (+/- $500 million). The Zacks Consensus Estimate for revenues is pegged at $7.69 billion, suggesting an increase of 8.4% from the year-ago quarter’s reading.
Applied Materials projects non-GAAP earnings per share of $2.64 (+/- $0.20). The Zacks Consensus Estimate for earnings is pegged at $2.68 per share, indicating an increase of 12.1% from the year-ago quarter’s reported figure. The figure has been revised upward in the past seven days.
Image Source: Zacks Investment Research
AMAT has an impressive earnings surprise history. AMAT beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 5.24%.
Applied Materials, Inc. Price and EPS Surprise
Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote
Earnings Whispers for AMAT Stock
Our proven model predicts an earnings beat for AMAT this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.77 per share) and the Zacks Consensus Estimate ($2.68 per share), is +3.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: AMAT carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note for AMAT
Applied Materials’ second quarter of fiscal 2026 results are expected to benefit from the rapid expansion of AI infrastructure and the increasing complexity of semiconductor manufacturing. Traction in high-margin product lines like leading-edge logic, high-bandwidth memory (HBM) DRAM and advanced packaging is likely to support AMAT’s results in the to-be-reported quarter.
Continued traction in AMAT’s wafer equipment manufacturing products is likely to have helped its semiconductor systems business grow rapidly in the to-be-reported quarter. Applied Materials is also gaining traction in its complex chip stacking architectures, boosting demand for deposition, conductor etch and eBeam technologies. This is likely to have persisted in the to-be-reported quarter.
Applied Materials has also been experiencing strong momentum from gate-all-around transistor adoption and advanced packaging for the past few quarters. This traction is likely to have persisted in the to-be-reported quarter. AMAT’s Applied Global Services business is expected to have benefited from rising fab utilization, increasing software and diagnostics intensity, and recurring service revenues.
AMAT’s flash memory or NAND sales nearly doubled to $1.41 billion in fiscal 2025. Although AMAT has a lower market share in the NAND space, it is gaining prominence. The growth trend is likely to have persisted in the to-be-reported quarter, supporting AMAT’s top-line growth. Furthermore, AMAT’s innovative businesses, comprising Epi, PVD, Implant, CMP and RTP, boast high market share and unique capabilities, which are also an added advantage.
Applied Materials’ Price Performance & Valuation
Applied Materials shares have gained 69.4% year to date, outperforming the Zacks Electronics – Semiconductors industry’s growth of 41.5%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
Let us now look at the value Applied Materials offers to its investors at current levels. AMAT is currently trading at a premium with a forward 12-month price-to-sales (P/S) of 9.89X compared with the industry’s 9.50X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for AMAT Stock
Applied Materials competes with KLA Corporation (KLAC - Free Report) , Lam Research (LRCX - Free Report) and Camtek (CAMT - Free Report) in the WFE and testing market. Applied Materials and KLA Corporation offer similar solutions, such as Wafer Inspection, Yield Enhancement and Process Control inspection systems, while Camtek stands at the forefront of semiconductor inspection and metrology solutions.
Camtek is focused on high-performance computing modules, advanced packaging and silicon carbide technologies. Lam Research develops Atomic Layer Deposition tools like AT200M, AT410 and AT650P that are similar to the devices made by Applied Materials. While Camtek, Lam Research and KLA Corporation overlap with Applied Materials, AMAT’s broad product portfolio enables it to seamlessly integrate its equipment across multiple processes.
Applied Materials’ integration of equipment across multiple processes reduces reliance on any single technology cycle and enables it to price its product stack better to protect margins. Moreover, AMAT’s DRAM offerings are gaining traction as customers are aggressively investing in 6F² nodes supported by rising demand for high bandwidth memory DRAM, driven by AI workloads.
On its first-quarter 2026 earnings call, AMAT highlighted its record growth in both Logic and DRAM segments, driven by major semiconductor transitions. Applied Materials expects future generations of HBM to adopt hybrid bonding, and in the hybrid bonding space, AMAT is one of the leading innovators. AMAT’s advanced packaging, particularly 3D chiplet stacking, is another structural tailwind as AI chips become more heterogeneous.
Conclusion: Buy AMAT Stock Now
Applied Materials is likely to benefit from traction across wafer equipment manufacturing and advanced packaging products. New product introductions like Epi, PVD, Implant, CMP and RTP will add to the long-term value of the company. Given these factors, AMAT is worth investing in right now.