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For the fourth quarter of fiscal 2026, Applied Materials expects total revenues of approximately $10.25 billion (+/-$500 million). The Zacks Consensus Estimate for revenues is pegged at $10.30 billion, suggesting an increase of 51.4% from the year-ago quarter.
Applied Materials expects its fourth quarter fiscal 2026 non-GAAP earnings of $4.02 per share (+/- 20 cents). The Zacks Consensus Estimate for earnings is pegged at $4.06 per share, indicating an increase of 87.1% from the year-ago quarter’s reported figure. The figure has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AMAT has an impressive earnings surprise history. AMAT beat the Zacks Consensus Estimate in each of the past four quarters, with an average earnings surprise of 5.45%.
Our proven model does not conclusively predict an earnings beat for Applied Materials this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though AMAT carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Applied Materials is expected to have benefited from strong AI infrastructure spending, rising demand for advanced semiconductors and increasing investments in wafer fabrication capacity in the fourth quarter of fiscal 2026. The company’s exposure to leading-edge foundry-logic, DRAM and advanced packaging is likely to have remained a key driver of growth in the to-be-reported quarter.
Demand for wafer fabrication equipment is expected to have remained robust as cloud service providers continue to expand AI infrastructure and semiconductor manufacturers increase investments in advanced chip production. Applied Materials’ customers are finding ways to overcome cleanroom capacity constraints, enabling higher equipment deliveries. These factors are likely to have been a tailwind for the to-be-reported quarter.
Longer-term customer commitments and rolling eight-quarter forecasts are also improving demand visibility and supporting supply-chain readiness. These trends are likely to have underpinned the company’s revenue growth in the to-be-reported quarter. Leading-edge foundry-logic and DRAM are expected to have remained significant growth drivers in the fourth quarter of fiscal 2026. Applied Materials’ broad portfolio of deposition, etch, epitaxy and materials modification technologies positions it well to capitalize on latest developments.
DRAM demand is likely to have benefited from AI-related memory requirements, including high-bandwidth memory (HBM). Advanced packaging is expected to have remained another important contributor to Applied Materials’ performance in the to-be-reported quarter as AI chipmakers increasingly adopt 3D chiplet stacking and HBM architectures. Furthermore, the Applied Global Services segment is likely to have benefited from higher fab utilization, an expanding installed base and rising demand for advanced services that improve manufacturing efficiency, yield and output in the fourth quarter of fiscal 2026.
Applied Materials’ Price Performance & Valuation
Applied Materials shares have gained 41.5% in a year, outperforming the Zacks Electronics – Semiconductors industry’s decline of 7.1%.
AMAT One-Year 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 5.76X compared with the industry’s 2.73X. AMAT’s Value score of D substantiates its premium price.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for AMAT Stock
Applied Materials is well positioned to benefit from increasing semiconductor manufacturing complexity, particularly as chipmakers transition to gate-all-around (GAA) and advanced FinFET architectures. Its record foundry-logic revenues in the third quarter of fiscal 2026 reflected capacity additions across these technologies. The introduction of Centris Spectral SiN ALD further strengthens its deposition portfolio, supporting uniform film formation in complex 3D structures. Management expects significant growth in leading-edge foundry-logic revenues in the second half of 2026.
AI infrastructure spending is driving investments in leading-edge foundry-logic, DRAM and advanced packaging, which management expects to account for approximately 80% of WFE growth in 2026 and 2027. Semiconductor Systems revenues increased 27% year over year to $7.04 billion in third quarter fiscal 2026. DRAM is another key growth driver as AI workloads increase demand for high-bandwidth memory. Record DRAM revenues rose 52% year over year in the third quarter of fiscal 2026.
New epitaxy and deposition solutions should support advanced memory architectures and higher-layer-count HBM. AMAT’s broad portfolio enables it to deal with its competitors. Applied Materials commands a broad portfolio of offerings and hence 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. Nevertheless, AMAT is experiencing solid business growth. Applied Materials is receiving longer planning signals from customers as advanced semiconductor supply remains tight, with AMAT planning further capacity for demand through 2030.
Conclusion: Hold AMAT Stock Now
AMAT’s broad portfolio, rising AI-driven WFE demand, expanding semiconductor equipment business and investments in manufacturing capacity support further growth. Given these factors, we suggest that investors should accumulate AMAT stock at present.
View the Zacks #1 Rank List
Image: Bigstock
AMAT to Post Q4 Earnings: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Applied Materials (AMAT - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Nov. 12, 2026, after market close.
For the fourth quarter of fiscal 2026, Applied Materials expects total revenues of approximately $10.25 billion (+/-$500 million). The Zacks Consensus Estimate for revenues is pegged at $10.30 billion, suggesting an increase of 51.4% from the year-ago quarter.
Applied Materials expects its fourth quarter fiscal 2026 non-GAAP earnings of $4.02 per share (+/- 20 cents). The Zacks Consensus Estimate for earnings is pegged at $4.06 per share, indicating an increase of 87.1% from the year-ago quarter’s reported figure. The figure has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AMAT has an impressive earnings surprise history. AMAT beat the Zacks Consensus Estimate in each of the past four quarters, with an average earnings surprise of 5.45%.
Applied Materials, Inc. Price and EPS Surprise
Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote
Earnings Whispers for AMAT
Our proven model does not conclusively predict an earnings beat for Applied Materials this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though AMAT carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note for AMAT’s Q4 FY26
Applied Materials is expected to have benefited from strong AI infrastructure spending, rising demand for advanced semiconductors and increasing investments in wafer fabrication capacity in the fourth quarter of fiscal 2026. The company’s exposure to leading-edge foundry-logic, DRAM and advanced packaging is likely to have remained a key driver of growth in the to-be-reported quarter.
Demand for wafer fabrication equipment is expected to have remained robust as cloud service providers continue to expand AI infrastructure and semiconductor manufacturers increase investments in advanced chip production. Applied Materials’ customers are finding ways to overcome cleanroom capacity constraints, enabling higher equipment deliveries. These factors are likely to have been a tailwind for the to-be-reported quarter.
Longer-term customer commitments and rolling eight-quarter forecasts are also improving demand visibility and supporting supply-chain readiness. These trends are likely to have underpinned the company’s revenue growth in the to-be-reported quarter. Leading-edge foundry-logic and DRAM are expected to have remained significant growth drivers in the fourth quarter of fiscal 2026. Applied Materials’ broad portfolio of deposition, etch, epitaxy and materials modification technologies positions it well to capitalize on latest developments.
DRAM demand is likely to have benefited from AI-related memory requirements, including high-bandwidth memory (HBM). Advanced packaging is expected to have remained another important contributor to Applied Materials’ performance in the to-be-reported quarter as AI chipmakers increasingly adopt 3D chiplet stacking and HBM architectures. Furthermore, the Applied Global Services segment is likely to have benefited from higher fab utilization, an expanding installed base and rising demand for advanced services that improve manufacturing efficiency, yield and output in the fourth quarter of fiscal 2026.
Applied Materials’ Price Performance & Valuation
Applied Materials shares have gained 41.5% in a year, outperforming the Zacks Electronics – Semiconductors industry’s decline of 7.1%.
AMAT One-Year 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 5.76X compared with the industry’s 2.73X. AMAT’s Value score of D substantiates its premium price.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for AMAT Stock
Applied Materials is well positioned to benefit from increasing semiconductor manufacturing complexity, particularly as chipmakers transition to gate-all-around (GAA) and advanced FinFET architectures. Its record foundry-logic revenues in the third quarter of fiscal 2026 reflected capacity additions across these technologies. The introduction of Centris Spectral SiN ALD further strengthens its deposition portfolio, supporting uniform film formation in complex 3D structures. Management expects significant growth in leading-edge foundry-logic revenues in the second half of 2026.
AI infrastructure spending is driving investments in leading-edge foundry-logic, DRAM and advanced packaging, which management expects to account for approximately 80% of WFE growth in 2026 and 2027. Semiconductor Systems revenues increased 27% year over year to $7.04 billion in third quarter fiscal 2026. DRAM is another key growth driver as AI workloads increase demand for high-bandwidth memory. Record DRAM revenues rose 52% year over year in the third quarter of fiscal 2026.
New epitaxy and deposition solutions should support advanced memory architectures and higher-layer-count HBM. AMAT’s broad portfolio enables it to deal with its competitors. Applied Materials commands a broad portfolio of offerings and hence 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. Nevertheless, AMAT is experiencing solid business growth. Applied Materials is receiving longer planning signals from customers as advanced semiconductor supply remains tight, with AMAT planning further capacity for demand through 2030.
Conclusion: Hold AMAT Stock Now
AMAT’s broad portfolio, rising AI-driven WFE demand, expanding semiconductor equipment business and investments in manufacturing capacity support further growth. Given these factors, we suggest that investors should accumulate AMAT stock at present.