Overview

* AMAT Q4 revenue declines 3% yr/yr but beats analyst expectations

* Adjusted EPS for Q4 beats consensus, despite a 6% yr/yr decline

* Company prepares for higher demand in H2 2026 due to AI and semiconductor growth

Outlook

* AMAT expects Q1 FY2026 revenue of $6.85 bln +/- $500 mln

* AMAT forecasts Q1 FY2026 non-GAAP EPS of $2.18 +/- $0.20

* Company prepares for higher demand in H2 2026 due to AI adoption

Result Drivers

* AI AND SEMICONDUCTORS - CEO Gary Dickerson cites AI adoption as a key driver for investment in advanced semiconductors and wafer fab equipment

* TECHNOLOGY INFLECTIONS - Co is positioned at key technology inflections in leading-edge logic, DRAM, and advanced packaging, per CEO

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $6.80 $6.66

bln bln (23

Analysts

)

Q4 Beat $2.17 $2.09

Adjusted (24

EPS Analysts

)

Q4 EPS $2.38

Q4 Beat $1.73 $1.69

Adjusted bln bln (21

Net Analysts

Income )

Q4 Net $1.90

Income bln

Q4 $2.04

Adjusted bln

Free

Cash

Flow

Q4 48.10%

Adjusted

Gross

Margin

Q4 28.60%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

* Wall Street's median 12-month price target for Applied Materials Inc ( AMAT ) is $240.00, about 3.9% above its November 12 closing price of $230.73

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)