Applied Materials (AMAT) said on Oct. 22, 2026 that it will report fiscal fourth-quarter and full-year 2026 results on Nov. 12, 2026. The same day its shares were down 8.16% at a latest quote of $375.58, as chip-equipment stocks sold off, according to market coverage, after a peer, Lam Research, warned that supply constraints cap its outlook. The coming report matters because the last quarter was strong, and the market is now asking whether that pace can continue.
Key facts
- Oct. 22, 2026: AMAT's latest quote was $375.58, down 8.16% on the day. Other outlets cited a smaller drop, so figures differ by source and time of day. Its 52-week range is $203.40 to $739.67. Market cap is $298.06B.
- Oct. 22, 2026: The company announced that its fourth-quarter and fiscal 2026 earnings call will be held Nov. 12, 2026. FMP's estimates for that report are EPS of $4.06 and revenue of $10.30B.
- Aug. 13, 2026: For the third quarter ended July 26, 2026, AMAT reported EPS of $3.50 against an estimate of $3.40, and revenue of $9.12B against an estimate of $8.99B.
- Third quarter, ended July 26, 2026: Revenue rose 24.8% from the year-ago quarter and net income rose 42.7%.
- Trailing 12 months: P/E of 32.18, net margin of 30.1%, dividend yield of 0.5%.
The $3.50 EPS in the first bullet is the figure measured against analyst estimates. The $3.17 in the table is diluted EPS under standard accounting rules (GAAP). The two measure profit differently, so they should not be compared directly.
What happened
The news itself is routine: a company announcing when it will report. The price move is what drew attention. According to market coverage on Oct. 22, Lam Research, which makes similar equipment, fell sharply after saying supply constraints limit its outlook. Applied Materials and ASML also dropped that day. AMAT did not announce any change to its own business.
The selloff follows a strong run of results. In the third quarter, AMAT beat both the EPS and revenue estimates, by $0.10 per share and $120.0M respectively.
By segment, Semiconductor Systems, the unit that sells chipmaking equipment, brought in $7.04B, up from $5.43B a year earlier. Applied Global Services, which covers servicing and spare parts for equipment already installed, brought in $1.78B, up from $1.60B. A "Corporate and Reconciling Items" line was $294.0M, against $12.0M a year earlier. FMP's data does not break out the Display and Adjacent Markets unit this quarter; it was $263.0M a year earlier.
By geography, China was the largest region at $2.51B, followed by Taiwan at $2.02B, Korea at $1.52B and the United States at $1.37B. Japan contributed $839.0M, Europe $483.0M and Southeast Asia $374.0M.
In an Oct. 13 release, the company said AI-driven investment in chip factories should support strong multi-year growth, citing leading-edge logic chips, memory (DRAM) and advanced packaging. In a separate Oct. 12 release, it announced a major new research and development center in Silicon Valley. These are management's own views, not independent findings.
Why it matters for investors
The five-quarter trend is improving. Margins have risen in most recent quarters:
| Quarter | Revenue | Gross margin | Operating margin | Net income | |---|---|---|---|---| | Q3 FY2025 (ended July 27, 2025) | $7.30B | 48.8% | 30.6% | $1.78B | | Q4 FY2025 (ended Oct. 26, 2025) | $6.80B | 48.0% | 25.2% | $1.90B | | Q1 FY2026 (ended Jan. 31, 2026) | $7.01B | 49.0% | 29.9% | $2.03B | | Q2 FY2026 (ended Apr. 26, 2026) | $7.91B | 49.9% | 31.9% | $2.81B | | Q3 FY2026 (ended July 26, 2026) | $9.12B | 50.3% | 33.7% | $2.54B |
Revenue has risen for three straight quarters. Gross margin (what is left after the direct cost of making products) and operating margin (what is left after running costs too) both hit their highest levels in the five-quarter span. Net income dipped in the latest quarter from the one before, even though operating income was higher. The data we have does not explain that gap.
Cash flow was uneven. Free cash flow, the cash left after capital spending, was $2.33B in the third quarter. In the second quarter it was only $210.0M, with operating cash flow of $845.0M. It was $1.04B in the first quarter and $2.04B in the fourth quarter of fiscal 2025. The data we have does not explain these swings, so one quarter alone says little. Over the third quarter, AMAT returned $440.0M through buybacks and $420.0M through dividends.
The balance sheet is sound. At July 26, 2026, AMAT held $9.23B in cash and short-term investments, more than its $7.35B in total debt. FMP reports net debt of $309.0M on its own basis. Its Piotroski score (a 0-9 measure of financial health) is 6, and its Altman Z-score (a bankruptcy-risk gauge, where higher is safer) is 14.80.
Versus peers, AMAT is not the most expensive name:
| Company | P/E (trailing) | Net margin | |---|---|---| | Applied Materials (AMAT) | 32.18 | 30.1% | | ASML Holding (ASML) | 40.54 | 34.1% | | ASM International (ASMXF) | 32.28 | 31.9% | | BE Semiconductor (BESIY) | 60.02 | 28.4% | | Axcelis (ACLS) | 34.91 | 10.7% |
P/E is the share price divided by the past year's earnings per share. AMAT has the lowest trailing P/E in this group, narrowly below ASM International at 32.28, with a net margin in the middle of the large peers.
Analysts remain positive. Of 55 ratings, 1 is strong buy, 42 are buy and 12 are hold, with no sells. The consensus price target averages $659.83, with a median of $625.00, a high of $900.00 and a low of $530.00. The Oct. 22 quote sits below the lowest target, which says nothing by itself about where the shares go next. Targets are analyst opinions and can change quickly. Recent actions include Needham (Buy), Evercore ISI (Outperform) and RBC Capital (Outperform), all maintained in mid-October, and Morgan Stanley keeping Equal Weight on Sept. 28.
Stock Expert AI's MoonshotScore V2 is 78.9, rated Strong. Its sector-relative pillars are quality 87, safety 84, momentum 68, growth 61 and valuation 30. In plain terms, the company scores well on profitability and financial stability, moderately on growth and price momentum, and weakly on valuation.
What could go wrong
- Peer warning. Lam's comment on supply constraints shows that even strong demand may not turn fully into sales if parts or capacity are short. AMAT has not said it faces the same limit.
- Valuation. The valuation pillar is the weakest at 30. The price-to-free-cash-flow ratio is 53.01, and price-to-sales is 9.67. FMP's discounted cash flow model returns a negative value of -$330.46 per share, which is not meaningful as a price signal and mainly shows how sensitive such models are to their inputs.
- Geographic concentration. China was the largest single region in the quarter. Export rules and trade policy there can shift quickly.
- Insiders. Among recent Form 4 filings (insider trade reports) in the last 90 days, there were 0 open-market purchases and 3 sales. The filing set may be incomplete, and insider sales have many possible causes.
- Volatility. The 52-week range runs from $203.40 to $739.67, so large swings are part of this stock's recent record.
What to watch next
- Nov. 12, 2026 results. Estimates are EPS of $4.06 and revenue of $10.30B. Compare reported figures with these, and with the third quarter's revenue of $9.12B.
- Margins. Whether gross and operating margins hold near their latest levels of 50.3% and 33.7%.
- Guidance. Management's outlook for the next quarter, and any comment on supply limits, customer spending and China.
- Cash flow. Whether free cash flow stays strong after the uneven pattern of recent quarters.
- Segment mix. Growth in Semiconductor Systems and in the steadier Applied Global Services business.
- Peer reports. Other equipment makers' commentary on supply and demand through early November.
Frequently asked questions
Q: When does Applied Materials report earnings?
The company said it will hold its fourth-quarter and fiscal 2026 earnings call on Thursday, Nov. 12, 2026, with a live webcast on its investor relations site. The report covers the fiscal fourth quarter and full fiscal year 2026. FMP's estimates are EPS of $4.06 and revenue of $10.30B.
Q: Why did Applied Materials stock fall on Oct. 22, 2026?
The latest quote was $375.58, down 8.16%, though figures differ by source and time. According to market coverage, the drop came as a peer, Lam Research, said supply constraints cap its outlook, and chip-equipment stocks fell broadly. AMAT did not announce any change to its own results or outlook that day, and market coverage tied the move to sector sentiment.
Q: Is Applied Materials stock expensive?
It depends on the yardstick. Its trailing P/E is 32.18, below ASML at 40.54 and BE Semiconductor at 60.02, and close to ASM International at 32.28. But its price-to-free-cash-flow ratio is 53.01, and our MoonshotScore valuation pillar is 30, the lowest of its five pillars. This is context, not advice, and the stock's valuation should be weighed against its strong margins and quality score.
This is educational content, not investment advice. Past performance does not guarantee future results.