Zacks Research Has Positive Outlook for AMAT FY2025 Earnings

Applied Materials, Inc. (NASDAQ:AMAT) – Zacks Research upped their FY2025 earnings per share estimates for shares of Applied Materials in a research note issued to investors on Thursday, September 4th. Zacks Research analyst Team now expects that the manufacturing equipment provider will earn $9.36 per share for the year, up from their prior estimate of $9.21. The consensus estimate for Applied Materials’ current full-year earnings is $9.38 per share. Zacks Research also issued estimates for Applied Materials’ Q4 2025 earnings at $2.11 EPS, Q1 2026 earnings at $2.15 EPS, Q2 2026 earnings at $2.27 EPS, Q3 2026 earnings at $2.44 EPS, Q4 2026 earnings at $2.19 EPS, FY2026 earnings at $9.05 EPS, Q1 2027 earnings at $2.26 EPS, Q2 2027 earnings at $2.54 EPS and Q3 2027 earnings at $2.76 EPS.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, topping analysts’ consensus estimates of $2.36 by $0.12. The company had revenue of $7.30 billion during the quarter, compared to analysts’ expectations of $7.21 billion. Applied Materials had a return on equity of 40.96% and a net margin of 23.88%.Applied Materials’s quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.12 EPS. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS.

Several other equities research analysts have also commented on AMAT. Wolfe Research cut their price objective on Applied Materials from $230.00 to $200.00 and set an “outperform” rating for the company in a research note on Friday, August 15th. Redburn Atlantic lowered Applied Materials from a “strong-buy” rating to a “hold” rating and cut their price objective for the stock from $225.00 to $200.00 in a research note on Monday, July 7th. Morgan Stanley boosted their price objective on Applied Materials from $169.00 to $172.00 and gave the stock an “equal weight” rating in a research note on Friday, August 15th. TD Cowen cut their price objective on Applied Materials from $220.00 to $200.00 and set a “buy” rating for the company in a research note on Friday, August 15th. Finally, UBS Group cut their price objective on Applied Materials from $185.00 to $180.00 and set a “neutral” rating for the company in a research note on Friday, August 15th. Seventeen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $193.88.

Applied Materials Price Performance

NASDAQ:AMAT opened at $162.75 on Friday. Applied Materials has a 12 month low of $123.74 and a 12 month high of $215.70. The stock has a 50 day moving average of $180.02 and a two-hundred day moving average of $164.92. The company has a current ratio of 2.50, a quick ratio of 1.76 and a debt-to-equity ratio of 0.28. The firm has a market cap of $129.65 billion, a P/E ratio of 19.40, a price-to-earnings-growth ratio of 2.25 and a beta of 1.77.

Institutional Investors Weigh In On Applied Materials

Large investors have recently made changes to their positions in the stock. Norges Bank purchased a new position in Applied Materials in the second quarter worth approximately $1,604,002,000. Sanders Capital LLC purchased a new position in Applied Materials in the second quarter worth approximately $1,409,320,000. Nuveen LLC purchased a new position in Applied Materials in the first quarter worth approximately $1,085,600,000. Alliancebernstein L.P. grew its position in Applied Materials by 72.5% in the second quarter. Alliancebernstein L.P. now owns 13,564,120 shares of the manufacturing equipment provider’s stock worth $2,483,183,000 after acquiring an additional 5,700,349 shares during the period. Finally, Kingstone Capital Partners Texas LLC purchased a new position in Applied Materials in the second quarter worth approximately $882,396,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, CAO Adam Sanders sold 562 shares of the company’s stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the sale, the chief accounting officer directly owned 5,300 shares in the company, valued at $946,580. This represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.24% of the stock is owned by company insiders.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.46 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.1%. Applied Materials’s dividend payout ratio is 21.93%.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.