Core Insights - Applied Materials (AMAT) reported first-quarter fiscal 2026 non-GAAP earnings of $2.38 per share, exceeding the Zacks Consensus Estimate by 8.7% and remaining flat compared to the previous year [1] - The company has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.2% [1] Financial Performance - AMAT's revenues for the first quarter of fiscal 2026 were $7.01 billion, surpassing the Zacks Consensus Estimate by 1.79%, but decreased by 2.2% year over year [2] - The stock price increased by 11.8% in pre-market trading following the earnings report, and the stock has surged 112% over the past year [2] Segment Performance - Semiconductor Systems generated revenues of $5.14 billion, accounting for 73.3% of total revenues, but declined by 8.1% year over year [3] - Applied Global Services reported revenues of $1.56 billion, representing 22.2% of total revenues, with a year-over-year increase of 15.2% [3] - Other revenues reached $312 million, up 44.4% year over year [3] Geographic Revenue Breakdown - Revenue contributions from various regions included: - United States: $656 million (9%) - Europe: $221 million (3%) - Japan: $525 million (7%) - Korea: $1.46 billion (21%) - Taiwan: $1.72 billion (25%) - Southeast Asia: $335 million (5%) - China: $2.1 billion (30%) [4] - Year-over-year growth was observed in Taiwan (45.6%) and Southeast Asia (17.1%), while declines were noted in Japan (2.8%), Europe (33.0%), China (6.6%), Korea (12.5%), and the United States (28.5%) [4] Margins and Expenses - The non-GAAP gross margin was reported at 49.1%, an increase of 20 basis points year over year [5] - Non-GAAP operating expenses were $1.34 billion, up 1.7% year over year, leading to a non-GAAP operating margin of 30.0%, down 60 basis points from the previous year [5] Balance Sheet and Cash Flow - As of January 25, 2026, cash and cash equivalents plus short-term investments totaled $8.51 billion, slightly down from $8.57 billion in the prior quarter [6] - Long-term debt stood at $6.45 billion, and the company generated non-GAAP free cash flow of $1.04 billion, returning $702 million to shareholders through share repurchases and dividends [6] Q2 Guidance - For the fiscal second quarter of 2026, AMAT expects net sales of $7.65 billion (+/- $500 million), above the Zacks Consensus Estimate of $7.03 billion, indicating a year-over-year decline of 1% [9] - The company anticipates non-GAAP earnings per share of $2.64 (+/- $0.20), with a projected non-GAAP gross margin of approximately 49.3% and operating expenses around $1.42 billion [10]

Core Insights - Applied Materials (AMAT) reported revenue of $7.01 billion for the quarter ended January 2026, reflecting a year-over-year decline of 2.2% and matching the EPS of $2.38 from the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $6.89 billion by 1.79%, while the EPS surpassed the consensus estimate of $2.19 by 8.53% [1] Financial Performance - The company’s shares have returned +12.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3] Geographic Net Sales - United States: $656 million, -28.5% year-over-year, below the estimate of $684.78 million [4] - Europe: $221 million, -33% year-over-year, below the estimate of $256.38 million [4] - Japan: $525 million, -2.8% year-over-year, slightly above the estimate of $518.68 million [4] - China: $2.1 billion, -6.6% year-over-year, above the estimate of $1.97 billion [4] - Taiwan: $1.72 billion, +45.6% year-over-year, below the estimate of $1.81 billion [4] - Southeast Asia: $335 million, +17.1% year-over-year, above the estimate of $271.34 million [4] - Korea: $1.46 billion, -12.5% year-over-year, above the estimate of $1.41 billion [4] Revenue Breakdown - Applied Global Services: $1.56 billion, matching the average estimate, -2.2% year-over-year [4] - Semiconductor Systems: $5.14 billion, above the average estimate of $4.97 billion, -4% year-over-year [4] - Corporate and Other: $312 million, above the estimate of $305.24 million, +845.5% year-over-year [4] Operating Income - Applied Global Services: $438 million, above the average estimate of $427.87 million [4] - Semiconductor Systems: $1.43 billion, below the average estimate of $1.81 billion [4]

First Quarter Fiscal 2026 Earnings Presentation Applied Materials External Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologi ...

Core Insights - Applied Materials (AMAT) is expected to report its first-quarter fiscal 2026 results on February 12, with a strong focus on its semiconductor systems business driven by the AI market [1][10] Semiconductor Systems Segment - The semiconductor systems business, AMAT's largest revenue contributor, grew by 4.5% in fiscal 2025, with notable strength in flash memory, DRAM, and logic [3] - NAND sales nearly doubled to $1.41 billion in fiscal 2025 from $747.4 million in the previous year [3] - In Q4 of fiscal 2025, DRAM revenues increased by nearly 16% year over year, contributing to expected revenue growth in the upcoming quarter [4] Display Business - AMAT's display business rebounded in fiscal 2025, achieving a year-over-year growth of 19.8%, with Q4 revenues surging by 68.2% due to a richer mix of advanced systems and increased pricing [5][10] - The gross margin for the display business reached 48.8%, the highest in 25 years, growing by 120 basis points year over year [6] Applied Global Services - The Applied Global Services segment is anticipated to have experienced steady growth, supported by strong demand for comprehensive service agreements and the expansion of its subscription-based business [7]

Core Viewpoint - Applied Materials (AMAT) is expected to report a decline in revenues and earnings for the first quarter of fiscal 2026, with strong demand in wafer fabrication equipment driven by AI and high-performance computing [2][3][9]. Financial Expectations - AMAT anticipates revenues of $6.85 billion (+/- $500 million), a decrease of 3.87% year-over-year, while the Zacks Consensus Estimate is $6.89 billion [2][9]. - Non-GAAP earnings are projected at $2.18 (+/- $0.20), reflecting a 7.98% decline from the previous year's figure, with the consensus estimate at $2.19 per share [3][9]. Earnings Performance - AMAT has a strong earnings surprise history, beating the Zacks Consensus Estimate in the past four quarters with an average surprise of 4.17% [4]. - The Earnings ESP is +3.06%, indicating a potential earnings beat this season [5][6]. Market Demand and Growth Drivers - Increased demand for wafer fabrication equipment is attributed to the rising use of semiconductors in AI and high-performance computing, particularly in foundry, DRAM, and advanced packaging [7][9]. - AMAT's NAND sales nearly doubled to $1.41 billion in fiscal 2025, indicating growing prominence in the market despite a lower market share [8][9]. Segment Performance - The display business showed a year-over-year growth of 19.8% in fiscal 2025, with a significant 68.2% increase in the fourth quarter, benefiting from advanced systems and price increases [11]. - The Applied Global Services segment is expected to see steady growth due to strong demand for service agreements and subscription-based business expansion [12]. Competitive Positioning - AMAT leads in GAA transistors at 2nm and below, which are essential for next-generation semiconductor manufacturing [10][22]. - The company is well-positioned to capitalize on the growing demand for AI-driven semiconductors through its innovations in chip manufacturing [23]. Investment Outlook - AMAT shares have increased by 74.9% over the past six months, outperforming the Zacks Electronics – Semiconductors industry [13]. - The company is currently trading at a forward price-to-sales ratio of 8.46X, slightly above the industry average of 8.26X [16]. - Given the continuous strength in wafer fabrication equipment and the demand for advanced semiconductor technologies, AMAT is recommended as a buy [24].

Core Insights - The article highlights the performance and outlook of several companies, including Applied Materials, Linde, Abbott Laboratories, and Flanigan's Enterprises, as featured in the Zacks Analyst Blog [1][2]. Applied Materials - Applied Materials' shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months, with a gain of 80.2% compared to the industry's 19.5% [4]. - The company is benefiting from a rebound in the semiconductor industry, particularly in the foundry and logic sectors, along with consistent progress in its services and strength in its diversified portfolio [5]. - However, increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment may undermine its near-term growth prospects [6]. Linde - Linde's shares have outperformed the Zacks Chemical - Specialty industry over the past year, with a gain of 2.2% compared to the industry's decline of 0.2% [7]. - The company has a record-high order book of $10 billion, supported by fixed-fee contracts and a strong execution track record [7]. - Despite maintaining industry-leading operating margins, Linde is cautious about the European economy, expecting demand to shrink, particularly in the industrial sector, and facing falling prices for helium and other rare gases due to oversupply [9]. Abbott Laboratories - Abbott's shares have underperformed the Zacks Medical - Products industry over the past year, with a decline of 16.1% compared to the industry's 14.4% [10]. - The company's nutrition business is transitioning, with expectations for growth in the second half of 2026, supported by a strong product pipeline and the Medical Devices segment, particularly the FreeStyle Libre CGM franchise [11]. - Demand in Diagnostics is improving outside of COVID, with momentum in Core Laboratory and Point of Care segments [12]. Flanigan's Enterprises - Flanigan's shares have outperformed the Zacks Retail - Restaurants industry over the past year, with a gain of 35.4% compared to the industry's decline of 5.1% [13]. - The company reported a 9.6% revenue increase in fiscal 2025, driven by pricing discipline and strong performance in its package store segment [14]. - Risks include structural cost pressures, labor inflation, and high fixed costs, which may limit margin scalability and organic growth [15].

Core Insights - Applied Materials Inc. (AMAT) reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.17 per share, exceeding the Zacks Consensus Estimate by 2.8%, although this represents a 6.5% decline from the previous year's figure [1] - The company achieved revenues of $6.8 billion in the fourth quarter, surpassing the Zacks Consensus Estimate by 1.5%, but down 3% year over year [2] Financial Performance - Segment-wise, Semiconductor Systems generated revenues of $4.76 billion, accounting for 70% of total revenues, which is an 8.1% decline from the year-ago quarter and below the Zacks Consensus Estimate of $4.79 billion [3] - Applied Global Services reported revenues of $1.63 billion, representing 23.9% of total revenues, a slight decline of 0.9% year over year, but above the Zacks Consensus Estimate of $1.60 billion [3] - Corporate and Other revenues totaled $415 million, up 81.2% year over year, with Display segment revenues included under this category amounting to $355 million [4] Geographic Revenue Breakdown - Revenues from various regions included: - United States: $655 million (10%) - Europe: $220 million (3%) - Japan: $448 million (6%) - Korea: $1.22 billion (18%) - Taiwan: $1.83 billion (27%) - Southeast Asia: $460 million (7%) - China: $1.96 billion (29%) [4] - Year-over-year revenue changes by region showed growth in Korea (4%), Taiwan (42.7%), and Southeast Asia (46.5%), while declines were noted in Japan (22.9%), Europe (45.7%), China (8.1%), and the United States (43.2%) [5] Margins and Expenses - The non-GAAP gross margin was reported at 48.1%, an increase of 60 basis points year over year [6] - Non-GAAP operating expenses were $1.33 billion, remaining roughly flat year over year, and represented 19.5% of sales, a decrease from the prior year [6] - The non-GAAP operating margin was 28.6%, down 70 basis points from the year-ago quarter [6] Balance Sheet and Cash Flow - As of October 26, 2025, cash and cash equivalents plus short-term investments stood at $8.57 billion, an increase from $7.01 billion at the end of the previous quarter [7] - Long-term debt was reported at $6.46 billion [7] - The company generated non-GAAP free cash flow of $2.04 billion and returned $1.22 billion to shareholders, including $851 million in share repurchases and $365 million in dividends for the quarter [7] Guidance - For the fiscal first quarter of 2026, AMAT expects net sales of $6.85 billion, with a variance of +/- $500 million, compared to the Zacks Consensus Estimate of $6.89 billion [8] - Projected sales for segments include Semiconductor Systems at $5.03 billion, Applied Global Services at $1.52 billion, and Display at $305 million [10] - The company anticipates a non-GAAP gross margin of approximately 48.4% and non-GAAP operating expenses of around $1.33 billion, with a projected non-GAAP earnings per share of $2.18 [10]

Core Insights - Applied Materials (AMAT) reported $6.8 billion in revenue for the quarter ended October 2025, reflecting a year-over-year decline of 3.5% and an EPS of $2.17, down from $2.32 a year ago, but exceeding the Zacks Consensus Estimate for revenue and EPS [1] Financial Performance - Revenue of $6.8 billion surpassed the Zacks Consensus Estimate of $6.7 billion by +1.52% - EPS of $2.17 exceeded the consensus estimate of $2.11 by +2.84% [1] Geographic Net Sales - United States: $655 million, -43.2% year-over-year, below the estimated $723.94 million - Europe: $220 million, -45.7% year-over-year, below the estimated $303.98 million - Japan: $448 million, -22.9% year-over-year, below the estimated $552.7 million - China: $1.96 billion, -8.1% year-over-year, below the estimated $2 billion - Taiwan: $1.83 billion, +42.8% year-over-year, above the estimated $1.55 billion - Southeast Asia: $460 million, +46.5% year-over-year, above the estimated $244.4 million - Korea: $1.22 billion, +4% year-over-year, below the estimated $1.36 billion [4] Segment Performance - Applied Global Services: $1.63 billion, -0.9% year-over-year, above the estimated $1.6 billion - Semiconductor Systems: $4.76 billion, -8.1% year-over-year, above the estimated $4.75 billion - Display: $355 million, +68.3% year-over-year, above the estimated $350.77 million - Operating Income for Corporate and Other: -$269 million, below the estimated -$227.28 million - Operating Income for Display: $91 million, above the estimated $33.97 million [4] Stock Performance - Shares of Applied Materials returned +1.4% over the past month, compared to the Zacks S&P 500 composite's +4.6% change - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Analysts forecast a decline in Applied Materials' quarterly earnings and revenues, indicating potential challenges for the company in the upcoming earnings report [1][2]. Financial Projections - Expected earnings per share (EPS) for the upcoming quarter is $2.11, reflecting a year-over-year decline of 9.1% [1]. - Anticipated revenues are projected to be $6.7 billion, which represents a decrease of 4.8% compared to the same quarter last year [1]. Earnings Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.4%, indicating a shift in analysts' expectations [2]. - Changes in earnings projections are crucial for predicting investor reactions and short-term stock price movements [3]. Key Revenue Metrics - 'Net Revenue- Applied Global Services' is projected to be $1.60 billion, down 2.2% year-over-year [5]. - 'Net Revenue- Semiconductor Systems' is expected to reach $4.75 billion, reflecting an 8.3% decline from the prior year [5]. - 'Net Revenue- Display' is forecasted at $350.77 million, showing a significant increase of 66.2% year-over-year [5]. Geographic Sales Estimates - 'Geographic Net Sales- United States' is expected to be $723.94 million, down 37.2% from the previous year [6]. - 'Geographic Net Sales- Europe' is projected at $303.98 million, indicating a decline of 24.9% year-over-year [6]. - 'Geographic Net Sales- China' is anticipated to reach $2.00 billion, reflecting a decrease of 6.3% compared to the prior year [7]. Positive Trends in Specific Regions - 'Geographic Net Sales- Taiwan' is expected to be $1.55 billion, showing a year-over-year increase of 20.8% [8]. - 'Geographic Net Sales- Korea' is projected at $1.36 billion, indicating a growth of 16.3% year-over-year [8]. Operating Income - 'Operating Income- Display' is forecasted to be $33.97 million, a significant increase from $5.00 million reported in the same quarter last year [8]. Stock Performance - Over the past month, shares of Applied Materials have increased by 9.6%, outperforming the Zacks S&P 500 composite, which saw a change of 0.3% [9].

Core Insights - Applied Materials Inc. (AMAT) reported third-quarter fiscal 2025 non-GAAP earnings of $2.48 per share, exceeding the Zacks Consensus Estimate by 5.1% and up from $2.12 per share a year ago [1][9] - The company reported revenues of $7.3 billion for the quarter, which was a 7.7% increase year over year but missed the Zacks Consensus Estimate by 1.4% [1][9] Financial Performance - Semiconductor Systems generated revenues of $5.43 billion, accounting for 74.3% of total net revenues, marking a 10.2% increase from the previous year and surpassing the consensus estimate of $5.38 billion [3][9] - Applied Global Services reported revenues of $1.60 billion, representing 21.9% of total net revenues, up 1.3% year over year and above the consensus estimate of $1.57 billion [3] - Display segment revenues were $263 million, improving 4.8% from the year-ago quarter and exceeding the consensus estimate of $259 million [4] Geographic Revenue Breakdown - Revenues by geography included: - United States: $683 million (9%) - Europe: $160 million (2%) - Japan: $713 million (10%) - Korea: $1.16 billion (16%) - Taiwan: $1.843 billion (25%) - Southeast Asia: $195 million (3%) - China: $2.548 billion (35%) [5] - Notable year-over-year revenue increases were seen in Japan (28.5%), Taiwan (60.5%), and China (18.4%), while revenues in the United States, Europe, and Southeast Asia decreased significantly [6] Operating Results - The non-GAAP gross margin was 48.9%, an increase of 150 basis points year over year [7] - Operating expenses totaled $1.33 billion, up 5.2% from the previous year, but decreased as a percentage of sales to 18.1% [7] - The non-GAAP operating margin improved to 30.7%, up 190 basis points year over year [7] Balance Sheet & Cash Flow - As of July 27, 2025, cash and cash equivalents plus short-term investments were $7.01 billion, down from $9.47 billion as of April 27, 2025 [8] - Inventories increased to $5.81 billion from $5.66 billion in the prior quarter, while accounts receivable decreased to $5.77 billion from $6.19 billion [10] - The company generated a non-GAAP free cash flow of $2.05 billion, significantly up from $1.06 billion in the prior quarter, and returned $1.42 billion to shareholders [11] Guidance - For the fiscal fourth quarter, AMAT expects net sales of $6.7 billion (+/- $500 million), with the Zacks Consensus Estimate at $7.31 billion [12] - Projected sales for segments include Semiconductor Systems at $4.70 billion, Applied Global Services at $1.60 billion, and Display at $350 million [12] - Management anticipates a non-GAAP gross margin of 48.1% and non-GAAP operating expenses of $1.31 billion, with expected non-GAAP earnings per share of $2.11 (+/- $0.20) [12][13]