Key Stats for AMAT Stock
- Price change for AMAT stock: +8.1%
- AMAT Share Price as of February 13: $355
- 52-Week High: $376
- AMAT Stock Price Target: $463
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What Happened?
Applied Materials (AMAT) stock surged more than 8% after the company reported fiscal Q1 earnings that exceeded Wall Street expectations across nearly every major financial metric.
For the quarter ended Jan. 31, Applied Materials reported revenue of $7.01B, which came in ahead of the Street’s $6.88B estimate and represented a solid sequential improvement from the prior quarter.
Profitability also impressed investors, as adjusted earnings per share came in at $2.38, beating consensus estimates of $2.21 and reflecting disciplined cost control alongside steady demand for advanced semiconductor manufacturing tools.
The strong quarterly performance was complemented by upbeat forward guidance, which played a key role in driving the stock’s sharp post-earnings move.
Management guided fiscal Q2 revenue to a range of $7.15B to $8.15B, which sits meaningfully above analyst expectations, while normalized EPS guidance of $2.44 to $2.84 also exceeded consensus forecasts.
Applied Materials exceeded analyst expectations across revenue, EBITDA, EBIT, net income, and adjusted EPS during the quarter, reinforcing confidence in the company’s near-term operating momentum.
Revenue exceeded estimates by 1.9%, while adjusted EPS beat expectations by nearly 8%, marking another quarter where Applied Materials delivered results ahead of the Street’s forecasts.
Margins remained healthy, with EBITDA at 31.9% and EBIT at nearly 30%, underscoring the company’s ability to maintain profitability even as customers navigate a mixed semiconductor spending environment.
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What the Market Is Telling Us About AMAT Stock
The market’s reaction suggests investors were more focused on what comes next than on the quarter that just ended.
That reaction makes sense because forward guidance often plays a larger role in determining near-term stock performance than historical results, especially for cyclical semiconductor equipment companies like Applied Materials.
Applied Materials entered the earnings report with already strong fundamentals, including a trailing twelve-month gross margin of 48.7% and an EBIT margin of 29.9%, according to data from TIKR.
The company also continues to generate significant cash, producing $8.7B in cash from operations over the last twelve months, while returning capital to shareholders through $4.25B in share repurchases and $1.42B in dividends.
From a valuation perspective, AMAT stock now trades at higher multiples following its recent rally, including roughly 33x forward earnings and about 25x forward EV/EBITDA, reflecting elevated expectations for continued growth tied to AI-driven semiconductor demand.
Street analysts currently have a mean price target of $384, which sits modestly above the current share price, though valuation assumptions vary widely across firms.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
