- Applied Materials reports adjusted EPS of $2.17, surpassing the estimated $2.11 but showing a decline from the previous year’s $2.32.
- Net sales for the fourth quarter were $6.80 billion, down 3.5% year-over-year, yet exceeding the estimated $6.67 billion.
- Semiconductor Systems’ net sales came in at $4.76 billion, an 8.1% decrease from last year, but slightly above the forecast of $4.74 billion.
- The Applied Global Services division saw net sales of $1.63 billion, a slight decline of 0.9% year-over-year, and just over the estimate of $1.6 billion.
- The adjusted gross margin was 48.1%, matching the estimates and improving from last year’s 47.5%.
- The company is preparing for an anticipated increase in demand starting from the second half of calendar 2026, according to CFO Brice Hill.
- Market analysts have rated the stock with 26 buys, 15 holds, and 2 sells.
Applied Materials on Smartkarma
Analyst coverage of Applied Materials on Smartkarma reveals contrasting sentiments among top independent analysts. Baptista Research highlights the impact of U.S. export restrictions on the company, projecting a significant revenue shortfall of $710 million. On the other hand, their report on Applied Materials‘ advanced packaging business expansion paints a bullish outlook, citing record-breaking performance and strong revenue growth in the third fiscal quarter of 2025.
However, William Keating adopts a bearish stance in his analysis, flagging tepid leading edge outlook and China-related challenges as potential pitfalls for Applied Materials. While the company reported solid revenues for Q325, expectations for the current quarter point to a decline. This mix of perspectives provides investors with valuable insights to navigate the complexities of investing in Applied Materials amidst evolving market conditions.
A look at Applied Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Applied Materials Outlook
Applied Materials, Inc. is positioned for a promising long-term future according to Smartkarma Smart Scores analysis. With a high Momentum score of 5, indicating strong market performance, the company shows positive growth potential. Coupled with a solid Resilience score of 4, this suggests that Applied Materials is well-equipped to weather market fluctuations. Furthermore, the Growth score of 3 points towards a company that is continuously expanding and evolving its offerings.
While the Value and Dividend scores are moderate, at 2 each, Applied Materials‘ strengths in Growth and Momentum signals a company that is driving innovation and capturing opportunities in the semiconductor industry. Overall, the company’s diverse customer base and focus on semiconductor wafer fabrication equipment position it well for sustained growth and market leadership in the coming years.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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