Applied Materials (AMAT) shares rose 11.37% to 370.55 USD on Nov. 9, 2026, three days before the company reports fiscal fourth-quarter results on Nov. 12. The move came with no company release, so the question for investors is what the last reported quarter, the ended July 26, 2026, already showed: revenue of $9.12B, up 24.8% from a year earlier, and the highest operating margin in our five-quarter trend.
Figures are current as of Nov. 9, 2026. Financial results cover the fiscal third quarter ended July 26, 2026, unless noted.
Key facts
- Nov. 9, 2026: AMAT was quoted at 370.55 USD after an 11.37% gain on the latest quote. Its 52-week range is 203.4-739.67 USD.
- Aug. 13, 2026 (Q3 FY2026 report): EPS was 3.5 against an analyst estimate of 3.4. Revenue was $9.12B against an estimate of $8.99B.
- Quarter ended July 26, 2026: Net income was $2.54B, up 42.7% from the year-ago quarter. Diluted EPS was 3.17.
- Nov. 12, 2026 (next report): Analysts estimate EPS of 4.06 and revenue of $10.30B.
- Quarter ended July 26, 2026: Free cash flow (cash from operations minus capital spending) was $2.33B.
- Nov. 9, 2026: Stock Expert AI's MoonshotScore V2 is 75.7 (Strong).
| Metric | Q3 FY2026 (ended July 26, 2026) | Q3 FY2025 (ended July 27, 2025) |
|---|---|---|
| Revenue | $9.12B | $7.30B |
| Operating income | $3.08B | $2.23B |
| Net income | $2.54B | $1.78B |
| Diluted EPS | 3.17 | 2.21 |
| Gross margin | 50.3% | 48.8% |
| Operating margin | 33.7% | 30.6% |
What happened
Applied Materials makes the equipment chipmakers use to build semiconductors. On Nov. 9, 2026, its shares rose 11.37%. Third-party headlines the same day reported that other chip-equipment names, including Lam Research and ASML, also rose. That suggests the move was at least partly a sector-wide reaction ahead of earnings season. We did not find a company announcement behind it.
The last report came on Aug. 13, 2026. Revenue of $9.12B was above the analyst estimate of $8.99B, and EPS of 3.5 was above the estimate of 3.4, a gap of $0.10. This is EPS as tracked against analyst estimates, which differs from the GAAP (standard accounting) diluted EPS of 3.17.
The growth came from the company's main business, Semiconductor Systems, which sells the chip-making tools. It brought in $7.04B in the quarter ended July 26, 2026, against $5.43B a year earlier. Applied Global Services, which sells maintenance, parts and upgrades for tools already installed, brought in $1.78B, up from $1.60B. That business tends to be steadier because customers need it whenever their factories run.
By region, China was the largest source of revenue in the quarter, followed by Taiwan. Korea, the United States and Japan came next. Those regions account for most of the company's sales, so spending decisions by chipmakers in a few places matter a lot.
Why it matters for investors
Margins widened for three straight quarters. In our trend data, operating margin (the share of revenue left after running costs) was 30.6% in the quarter ended July 27, 2025. It fell to 25.2% in the quarter ended Oct. 26, 2025, then recovered to 29.9%, 31.9% and 33.7% in the following quarters. Gross margin moved from 48.0% to 49.0%, 49.9% and 50.3% over the same stretch. Revenue growth is now reaching profit, not just sales.
Cash flow was uneven. Free cash flow was $2.05B in the quarter ended July 27, 2025, $2.04B in the quarter ended Oct. 26, 2025, $1.04B in the quarter ended Jan. 31, 2026, and only $210.0M in the quarter ended April 26, 2026. It then rebounded to $2.33B in the latest quarter. Operating cash flow was $3.04B in the latest quarter and $845.0M in the one before. Swings like this are common for equipment makers when customer orders and inventory shift, but one strong quarter does not prove a trend.
Net income did not follow operating income in the last quarter. Operating income rose to $3.08B, but net income of $2.54B was lower than the $2.81B of the quarter ended April 26, 2026. Our data does not explain the gap, so we do not draw a conclusion from it.
The balance sheet is sound. As of July 26, 2026, the company held $9.23B in cash and short-term investments and $7.35B of total debt. FMP lists net debt of $309.0M, a figure that appears to use a different, narrower cash definition than the one above. In the latest quarter the company spent $440.0M on buybacks and $420.0M on dividends. The dividend yield is 0.5%. Its Piotroski score (a 0-9 financial health check) is 6, and its Altman Z score (a bankruptcy-risk gauge where higher is safer) is 13.37.
Valuation is at the low end of its peer group on P/E. On trailing-12-month numbers, AMAT trades at a P/E of 31.75, a price-to-sales ratio of 9.54 and a price-to-free-cash-flow ratio of 52.30. Its net margin is 30.1%. Peers:
| Company | P/E | Net margin |
|---|---|---|
| Applied Materials (AMAT) | 31.75 | 30.1% |
| ASML | 38.37 | 34.1% |
| ASM International (ASMXF) | 32.97 | 26.8% |
| BE Semiconductor (BESIY) | 40.50 | 32.9% |
| Axcelis (ACLS) | 31.75 | 11.7% |
AMAT's P/E is below ASML, ASM International and BE Semiconductor, and level with Axcelis. Its net margin is below ASML and BE Semiconductor but above ASM International and Axcelis.
Analysts lean positive. Of 55 ratings, 1 is strong buy, 42 are buy, 12 are hold, and none are sell. Analysts' price targets average 659.83 USD, with a median of 625.00 USD, a high of 900.00 USD and a low of 530.00 USD. Recent actions include Morgan Stanley maintaining Equal Weight on Nov. 3, 2026, and Needham, Evercore ISI and RBC Capital maintaining positive ratings in October. These are analysts' views, not ours.
Our MoonshotScore V2 is 75.7 (Strong). Among its pillars, scored against the sector, quality is 86 and safety is 82, the strongest areas. Growth is 62 and momentum is 52, which are middling. Valuation is 30, the weakest, which fits the market pricing in a lot of optimism.
What could go wrong
- Valuation: The valuation pillar is the weakest, and the price-to-free-cash-flow ratio of 52.30 leaves little room for disappointment. FMP's discounted cash flow model (an estimate of what the business is worth) returned a negative value of -330.80 USD per share. We treat that output as unreliable for a business with uneven cash flow, but it is not a supportive signal.
- Geographic concentration: Sales depend on a handful of regions and on chipmakers' spending plans. China was the largest region in the latest quarter, so any change in export rules or Chinese demand would matter. We did not verify any such risk in the source data for this article.
- Cash flow swings: Free cash flow of $210.0M in the quarter ended April 26, 2026, shows how quickly it can fall.
- Insiders: Among recent Form 4 filings (insider trade reports) in the last 90 days, there were 0 open-market purchases and 3 sales. Older filings may be missing, so this is a partial picture.
- Price volatility: An 11.37% one-day move, within a 52-week range of 203.4-739.67 USD, shows how fast sentiment can change.
What to watch next
1. Nov. 12, 2026 results: Analysts estimate EPS of 4.06 and revenue of $10.30B. Whether the company beats or misses those estimates, and how its margin compares with 33.7%, will set the tone. 2. Management's outlook: Watch what the company says about demand from chipmakers and about China. 3. Cash conversion: See whether free cash flow stays near the latest quarter's $2.33B or falls back. 4. Segments: Check whether Applied Global Services keeps growing alongside Semiconductor Systems.
Frequently asked questions
Q: Why did Applied Materials stock go up on Nov. 9, 2026?
AMAT shares rose 11.37% to 370.55 USD on Nov. 9, 2026, ahead of the company's Nov. 12 earnings report. Third-party headlines said other chip-equipment stocks also rose that day. We found no company release that explains the move.Q: How did Applied Materials do in its most recent quarter?
In the fiscal third quarter ended July 26, 2026, Applied Materials reported revenue of $9.12B, up 24.8% from a year earlier, and net income of $2.54B, up 42.7%. Its operating margin was 33.7%, and EPS of 3.5 was above the analyst estimate of 3.4.Q: What do analysts expect from Applied Materials' next earnings report?
For the quarter to be reported on Nov. 12, 2026, analysts estimate EPS of 4.06 and revenue of $10.30B. Analysts' price targets average 659.83 USD, ranging from a low of 530.00 USD to a high of 900.00 USD, and the consensus rating is Buy.What our data could not verify: the cause of the Nov. 9, 2026 price move, management's comments on the coming quarter, and why net income fell below the prior quarter's level.
Sources: Stock Expert AI data and FMP financial data as of Nov. 9, 2026 (company financials, estimates, ratings, MoonshotScore V2). Third-party headlines from 247wallst.com, Zacks, Benzinga and Motley Fool were used only for context.
This is educational content, not investment advice. Past performance does not guarantee future results.