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AMAT −1.22% today · Analysis updated Nov 13, 2026, 9:45 AM ET
Why is Applied Materials (AMAT) stock down today?
Applied Materials reported a clean beat for fiscal Q4. Revenue was a record $10.41B, up 53%, and non-GAAP EPS was $4.16 against about $4.06 expected. Semiconductor Systems revenue rose 64% to $8.0B, and non-GAAP gross margin reached 50.6%. Q1 guidance was above consensus: revenue of $11.1B ±$500M against about $10.89B, and EPS of $4.15-$4.55 against about $4.26. Management plans to double systems output by 2028 and said Semiconductor Systems should grow more than 40% in calendar 2026. The market reaction has been muted. Shares closed at $380.95 on Nov 12, down 3.6%, and traded near $376 in early trading on Nov 13. That is below the Nov 11 close of $395.08 and far below the 52-week high of $739.67. The stock is up about 18% from the Nov 5 low of $319.25, which came on heavy volume of 17M shares. Options had implied a move of about 7.5%, so the actual move so far is smaller than expected. Analyst targets average about $623. Some recent target cuts, including B. Riley to $475 and JPMorgan to $500, show the Street has lowered its expectations. Risks include the China and export-control fears behind the roughly 37% slide, a high beta of about 1.67, and a sharp earnings ramp already priced in for FY27. The fundamentals are strong, but the price is not confirming them yet.
News behind the analysis
- Applied Materials Reports Q4 Earnings, Raises Guidance as AI Drives Strong Chip DemandQ4 revenue was $10.41B against $10.30B expected, and adjusted EPS was $4.16. Q1 revenue guidance is $11.1B ±$500M against $10.89B expected, and Q1 EPS guidance is $4.15-$4.55.
- Earnings call transcript: Applied Materials tops Q4 2026 forecasts as AI demand lifts outlookFY26 revenue rose 21% to $34.4B and non-GAAP EPS rose 37% to $12.89. Management plans to double systems output by 2028 and more than double capacity by 2030.
- Applied Materials (AMAT) Fiscal Q4 2026 Earnings Call: Record Revenue and Strong AI DemandSemiconductor Systems revenue reached a record $8.0B, up 64%, driven by leading-edge foundry logic, DRAM and advanced packaging. Management expects Semiconductor Systems revenue to grow more than 40% in calendar 2026.
- AMAT Q4 FY2026 earnings callNon-GAAP gross margin is guided to about 50.8% for Q1, with operating expenses near $1.7B. The company is investing to expand capacity.
- Applied Materials fiscal Q4 2026 earnings preview: what to watch for in the printConsensus was $4.06 EPS and $10.30B revenue. The preview flagged China and export-control fears as a swing factor after a roughly 37% one-month slide.
- Applied Materials fiscal Q4 2026 earnings preview (Yahoo Finance)The preview gave a bear case of about 19.9% downside and a forward P/E of 29.0x. Morgan Stanley is at Equal Weight with its target cut from $563 to $538.
- Applied Materials set to report earnings with $4.06 EPS estimateAnalysts expected $4.06 EPS and $10.30B revenue, and the company's own guidance midpoint was $10.25B and $4.02.
- Applied Materials Q4 Earnings Preview: Revenue Expected to Grow 51%, Wall Street High Price Target at $900The preview highlighted DRAM and advanced packaging demand. The highest Street target is $900.
- Applied Materials, Inc. (AMAT) Stock Price, News, Quote & HistoryThe stock closed at $380.95 on Nov 12, down 3.58%. The average analyst target is about $623, and B. Riley cut its target from $700 to $475 on Nov 9 while keeping Buy.
- Applied Materials Stock Price, Quote and NewsAfter-hours trading showed a gain of about 0.7%. Options had implied a move of about 7.5% after earnings.
About Applied Materials Inc
Applied Materials, based in Santa Clara, California, is one of the world's largest makers of the machines and services chipmakers use to build semiconductors. It covers a very wide range of manufacturing steps, including depositing, etching and inspecting materials, and it also makes equipment for display screens. In its fiscal third quarter of 2026 (ended July 2026) it reported record revenue of about $9.1 billion, up roughly 25% from a year earlier.
How it makes money
Most of its revenue, very roughly three-quarters, comes from Semiconductor Systems. That unit sells manufacturing equipment to foundries (contract chipmakers), logic chipmakers and memory makers (DRAM and NAND). About a fifth comes from Applied Global Services, which sells spare parts, upgrades and service contracts tied to the large number of its machines already in use. A smaller Display segment sells equipment for making flat-panel and OLED screens. Non-GAAP gross margin has recently been about 50%.
What usually moves AMAT
- Chipmaker capital spending, especially on AI and high-bandwidth memory
- Memory (DRAM/NAND) industry cycles
- US export restrictions on China, a major market
- Transitions to new chip technologies such as gate-all-around transistors and advanced packaging
- Quarterly results and guidance