Applied Materials (AMAT) Q3 Earnings and Revenues Beat Estimates

Core Insights - Applied Materials (AMAT) reported quarterly earnings of $2.48 per share, exceeding the Zacks Consensus Estimate of $2.34 per share, and showing an increase from $2.12 per share a year ago, resulting in an earnings surprise of +5.98% [1] - The company achieved revenues of $7.3 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.42% and up from $6.78 billion year-over-year [2] - Applied Materials has outperformed the S&P 500, with shares increasing approximately 16.9% since the beginning of the year compared to the S&P 500's gain of 10% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.36 on revenues of $7.31 billion, while for the current fiscal year, the estimate is $9.46 on revenues of $28.8 billion [7] - The estimate revisions trend for Applied Materials was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Electronics - Semiconductors industry, to which Applied Materials belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Applied Materials may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Competitor Insights - Ambarella (AMBA), another company in the same industry, is expected to report quarterly earnings of $0.06 per share, reflecting a year-over-year change of +146.2%, with revenues anticipated to be $90.03 million, up 41.3% from the previous year [9][10]