Core Viewpoint - Applied Materials Inc reported its fiscal second-quarter results, showing mixed performance amid a competitive earnings season, leading to a decline in share price. Financial Performance - The company reported quarterly revenue of $7.1 billion, down 1% sequentially but up 7% year-on-year, aligning with consensus estimates [2] - Non-GAAP gross margins were 49.2%, exceeding the consensus of 48.4%, resulting in non-GAAP earnings of $2.39 per share, surpassing the consensus of $2.31 per share [3] Analyst Ratings and Price Targets - JPMorgan maintained an Overweight rating but reduced the price target from $240 to $210 [2] - BofA Securities reaffirmed a Buy rating with a price target of $190, citing trailing-edge exposure as a growth drag [4] - Cantor Fitzgerald kept an Overweight rating with a price target of $200, noting mixed results and revenue guidance in line with expectations [6] - Needham reiterated a Buy rating with a price target of $195, highlighting a decline in China revenue to 25% of total revenues [8] Growth Outlook - Analysts expect at least 5% growth for the year, with Semiconductor System revenues balanced between the first and second halves [7] - Management indicated a generally unchanged WFE outlook, with domestic China revenues normalizing post-trade restrictions [7] - Despite consistent growth over the past five years, the company’s 2026 sales estimates were lowered by 3% due to softer trends [5] Revenue Guidance - The midpoint of the revenue guidance for the fiscal third quarter is $7.20 billion, slightly missing the consensus estimate of $7.22 billion [8][9] - Management did not provide guidance for the latter half of the year, which is critical for assessing future trends [9]