Applied Materials, Inc. (NASDAQ: AMAT) is preparing to release its first-quarter earnings, with market watchers and analysts closely watching how the company is capitalizing on sustained demand for advanced chipmaking capabilities. The report will not only highlight Applied Materials’ strategic position in the evolving market but also provide a key barometer for the broader health of the semiconductor ecosystem.
Estimates
The semiconductor equipment maker has scheduled its first-quarter 2026 earnings release for Thursday, February 12, at 4:00 pm ET. Analysts’ consensus earnings estimate for the quarter is $2.21 per share, excluding special items, which is lower than $2.38 per share the company earned in Q1 2025. The weak bottom-line forecast reflects an estimated 4% YoY decline in Q1 revenues to $6.88 billion. Quarterly earnings have consistently beaten estimates since Q3 2022.
Applied Materials’ stock peaked in late January, after a year-long growth streak. The value has more than doubled in the past five months, outpacing the S&P 500. Notably, the shares have gained more than 25% since the beginning of 2026. The uptrend is expected to continue ahead of next week’s earnings, with analysts’ latest target price signaling double-digit gains in the next twelve months.
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Key Metrics
In the fourth quarter, earnings declined to $2.17 per share from $2.32 per share in the same period of 2024, on an adjusted basis. The bottom line exceeded Wall Street’s expectations. Unadjusted net income was $1.90 billion or $2.38 per share in Q4, compared to $1.73 billion or $2.09 per share a year earlier. Fourth-quarter revenue declined to $6.80 billion from $7.04 billion in the corresponding period of the previous year, but came in above expectations.
Gary Dickerson, the company’ CEO, said in his post-earnings interaction with analysts, “Overall, Applied is very well positioned at the most valuable technology inflections and in areas of the market that will grow fastest as AI is deployed on a large scale. The process tool of record positions that we have established over the past several years give us confidence that we will extend our strong leadership position in logic, DRAM, and packaging as advanced technology nodes ramp in volume production. Another key theme we consistently hear from our customers and our customers’ customers is that co-optimization of the technology stack is more critical than ever.”
Road Ahead
In a recent statement, management said it is streamlining operations to support higher demand beginning in the second half of calendar 2026, which is expected to be a growth year for Applied Materials. The company looks strategically placed to leverage the ongoing AI infrastructure build-out and solid enterprise spending on wafer fab equipment.
Applied Materials’ stock has grown 75% in the past six months and is currently trading well above its 52-week average price. On Monday, AMAT opened at $316.85 and mostly traded higher during the session.