Applied Materials Prepares Q4 Earnings Report as AI Demand Drives Growth
Applied Materials reports fiscal fourth-quarter earnings after Thursday's close. Wall Street anticipates roughly $10.3 billion in revenue and non-GAAP EPS of $4.06.
Applied Materials is scheduled to release its fourth-quarter and annual numbers for fiscal 2026 after the closing bell on November 12. According to data reported by TradingKey, analysts anticipate approximately $10.3 billion in revenue, representing a gain of about 51% from $6.8 billion in the prior-year period. Non-GAAP earnings per share are projected at around $4.06, matching estimates from the Nasdaq earnings calendar.
The anticipated results sit slightly above the company's previously issued guidance midpoint of $10.25 billion in revenue and $4.02 in non-GAAP EPS. Management previously anticipated fourth-quarter Semiconductor Systems revenue of about $7.9 billion alongside a non-GAAP gross margin near 50.4%. Investor focus remains centered on equipment deliveries for dynamic random-access memory, advanced logic, and packaging.
The earnings release comes after a volatile stretch for the stock. Applied Materials fell almost 25% over three months and dropped about 25% across eight trading sessions following an October 13 investor breakfast that offered no fiscal 2027 forecast. However, shares rebounded 6.05% to end at $395.08 on November 11 as strong earnings from CoreWeave renewed optimism across the semiconductor supply chain.
Market participants will closely evaluate management's outlook for fiscal 2027. Peer equipment maker Lam Research has projected overall chipmaker equipment expenditures to surpass $200 billion in 2027. According to Trefis, Applied Materials fell following six of its prior eight earnings reports, averaging a drop of 5.2%.
Wall Street opinions on the shares remain mixed. Data from 41 analysts compiled by StockAnalysis yields an average 12-month target of $620.78, featuring a high target of $900. UBS maintains a Buy rating and a $695 target, citing expanding demand for artificial intelligence hardware. Conversely, Morgan Stanley kept a Hold rating while trimming its target from $563 to $538, pointing to valuation concerns.