Applied Materials (NASDAQ:AMAT) looks to get its stock back to all-time highs when the company reported third-quarter financial results Thursday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.
Applied Materials Q3 Earnings
Analysts expect Applied Materials to report third-quarter revenue of $9.00 billion, up from $7.30 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in four straight quarters and in nine of the last 10 quarters overall.
The estimate calls for record revenue, surpassing the $7.91 billion reported in the second quarter by the company.
Analysts expect Applied Materials to report third-quarter earnings per share of $3.39, up from $2.48 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
Applied Materials Analyst Ratings
Bank of America Securities analysts highlighted Applied Materials as an AI-related stock to consider buying after a pullback in July. Analyst Vivek Arya said the selloff creates an entry point after hitting all-time highs on June 30 and falling in July.
The analyst rated Applied Materials with a Buy rating and $720 price target in July.
Arya said Applied Materials is the largest and most diversified name in the group, giving exposure to many corners of the upcycle.
With shares trading at 28 times forward earnings estimates at the time of the note, Arya said this was the widest discount to peers in five years.
Here are recent analyst ratings on Applied Materials and their price targets:
- William Blair: Assumes with Market Perform rating, no price target
- UBS: Maintained Buy rating, raised price target from $570 to $705
- Stifel: Maintained Buy rating, raised price target from $530 to $650
- Needham: Maintained Buy rating, raised price target from $530 to $740
Key Items to Watch
Applied Materials has been one of the hottest stocks in major indexes in 2026, but shares are currently down 25% from all-time highs set back on June 30.
The stock is a member of major indexes and a key holding in semiconductor ETFs, which could make any volatility in shares after the earnings report felt sector wide. Here are some of the top ETFs that have AMAT stock and their exposure:
- SPDR S&P 500 ETF Trust (NYSE:SPY): 0.6%, 25th largest holding
- Invesco QQQ Trust (NASDAQ:QQQ): 1.8%, 16th largest holding
- iShares Semiconductor ETF (NASDAQ:SOXX): 5.0%, 6th largest holding
- VanEck Semiconductor ETF (NASDAQ:SMH): 4.8%, 7th largest holding
The semiconductor company looks to gain momentum again and get shares back to all-time highs.
Analysts expect record results, which could ramp up the pressure on the company.
Second-quarter revenue was up 11% year-over-year, with the company highlighting strong leadership positions in several sectors. In the company’s guidance, they said semiconductor equipment segment revenue is expected to be up 30% year-over-year in calendar 2026, up from prior guidance of 20% year-over-year.
That optimism and strong guidance from the company could be enough to power record results.
The question is how much of a beat is needed from the company, or how strong guidance needs to be going forward, for investors to be excited and send shares higher.
Applied Materials Stock Price Action
Applied Materials stock is up 5.0% to $551.68 on Wednesday versus a 52-week trading range $154.46 to $739.67. Applied Materials stock is up 105.1% year-to-date in 2026.
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