Applied Materials, Inc.

AMAT · NASDAQ · Technology

$507.11▼ -5.13%

$27.43 today

Mkt cap $346.52B
P/E 41.1
Day $497.10 – $523.00

Confidence

High conviction

The read

AMAT’s 26.6% EPS miss triggered a 5.13% selloff despite long-term growth support

Applied Materials reported $2.48 EPS for the quarter ended July 31, 2026, versus $3.38 estimated, a $0.90 miss. Shares fell 5.13% to $507.11 on 12.5 million shares, while specific forward guidance was not provided in the payload. The setup shifted toward execution risk: AMAT retains 34.85% expected next-year EPS growth and a 30.13% operating margin, but trades at 43.74x trailing earnings and remains exposed to slower systems shipments and estimate reductions.

Confidence note: Reported EPS, consensus, price, volume, valuation, growth, margin, and shipment-risk data were available; specific numerical forward guidance and post-earnings news were not.

What happened

Earnings print

Reported EPS was $2.48 versus $3.38 estimated on August 13, a $0.90 miss equal to -26.63%.

Guidance

Specific numerical guidance was unknown; the available forward narrative emphasized outlook revisions and risk from slower systems shipments.

Price reaction

Shares declined 5.13% to $507.11 on August 14, from a $534.54 prior close, with 12.5 million shares traded.

Street narrative

The post-print narrative focused on a growth-expectations problem: 34.85% expected next-year EPS growth must justify a 43.74x trailing P/E amid slower-shipment risk.

So what

What changed

EPS fell $0.90 below consensus, with shares declining 5.13% to $507.11 after the August 13 report.

What the market is pricing

The selloff and 43.74x P/E indicate reduced tolerance for execution risk despite 34.85% expected next-year EPS growth.

Fundamental takeaway

Maintain a cautious bias; upgrade only if systems shipments improve and forward profit estimates stop being revised downward.

Next 30–90 days

Bull

30%

The miss proves temporary if systems shipments recover and analysts preserve the 34.85% next-year EPS-growth outlook.

Forward outlook revisions over the next 30-90 days retain or raise the 34.85% next-year EPS-growth expectation.
Company or industry updates identify improving systems shipments within the next 90 days.

Base

45%

AMAT remains profitable and financially sound, but the $2.48 EPS miss keeps valuation and estimate-revision risk unresolved.

Forward outlook revisions remain mixed rather than materially reducing the 34.85% next-year EPS-growth expectation.
The stock stabilizes near the current $507.11 level without additional shipment-related warnings.

Bear

25%

Slower systems shipments trigger estimate cuts, making the 43.74x P/E harder to sustain after the 26.63% EPS miss.

Analysts reduce forward EPS forecasts during the next 30-90 days.
Company or industry commentary confirms slower systems shipments and weaker forward demand.

What to do

If you hold it

Hold unless forward outlook revisions cut the 34.85% next-year EPS-growth expectation or shipment weakness pressures the 30.13% operating margin.

If you're watching

Add only if forward estimates stabilize or rise alongside improving systems shipments; do not trade if shipment trends remain unknown and estimates continue falling.

Add to Watchlist

Forward EPS revisions over the next 30-90 days versus the current 34.85% next-year growth expectation.
Systems-shipment commentary, the named risk behind potential analyst profit-forecast cuts.
Operating margin relative to the reported 30.13% baseline.
Price behavior relative to the $507.11 August 14 close, following the 5.13% decline on 12.5 million shares.