What to Expect From Applied Materials' Next Quarterly Earnings Report

With a market cap of $439.8 billion, Applied Materials, Inc. (AMAT) is a global provider of materials engineering solutions, equipment, services, and software for the semiconductor and related industries. It operates through its Semiconductor Systems and Applied Global Services (AGS) segments to support the manufacturing of semiconductor wafers, chips, and other electronic devices.

The Santa Clara, California-based company is slated to announce its fiscal Q3 2026 results after the market closes on Thursday, Aug. 13. Ahead of this event, analysts expect AMAT to report an adjusted EPS of $3.36, a 35.5% growth from $2.48 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in each of the past four quarters.

For fiscal 2026, analysts predict the semiconductor equipment maker to post adjusted EPS of $12.14, a rise of 28.9% from $9.42 in fiscal 2025. In addition, adjusted EPS is expected to increase 33.7% year-over-year to $16.23 in fiscal 2027.

Shares of Applied Materials have climbed 203.9% over the past 52 weeks, outpacing the broader S&P 500 Index's ($SPX) 16.6% gain and the State Street Technology Select Sector SPDR ETF's (XLK) 37.7% return over the same period.

Applied Materials delivered better-than-expected Q2 2026 revenue of $7.91 billion and adjusted EPS of $2.86 on May 14. The company also issued stronger-than-expected Q3 guidance, forecasting revenue of about $8.95 billion (±$500 million) and adjusted EPS of $3.36 (±$0.20), supported by sustained AI and data center demand. Additionally, management projected more than 30% growth in its semiconductor equipment business and over 50% growth in packaging revenues for 2026, citing rising AI-driven chip manufacturing demand and expanded production capacity. However, the stock fell marginally the next day.

Analysts' consensus view on AMAT stock remains bullish, with an overall "Strong Buy" rating. Out of 38 analysts covering the stock, 28 recommend a "Strong Buy," three "Moderate Buys," and seven give a "Hold" rating. The average analyst price target is $635.41, indicating a potential upside of 12.6% from the current levels.