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AMAT US S&P 500NASDAQ-100Russell 1000 Earnings call

Applied Materials (AMAT) · Q2 2026 results and valuation

Share price: $395.08 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026

Net income down 9.6% on the previous quarter, guidance raised. Tone in line with last period.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−9.6%

Net income vs Q1 2026

Guidance raised

Net income 2.54B vs 2.81B

Revenue +15.2%

2 · How management spoke

Unchanged

Language tone vs last period

Language: upbeat — about as upbeat as in Q1 2026.

3 · What stood out

Applied Materials expects leading-edge foundry logic, DRAM, and advanced packaging to represent approximately 80% of wafer fab equipment growth in 2026 and 2027.

Valuation

Is Applied Materials undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-10-26), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 3.2% growth a year (3-year revenue growth), the model's fair value is $105.37 a share — the stock trades 275% above it. Today's price assumes 21.5% growth a year.

Current price

$395.08

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+21.5% for 10 yrs

Fair value / share

$105.37

Buy below

$79.03

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Guidance ↑

    Higher 2026 revenue guidance reflects improved supply chain support.

    Source quote
    “With support from our supply chain, we have again increased our expectations for 2026 revenue.”
  2. Guidance

    Packaging revenue is now expected to grow on overall market leadership and strong positions in high bandwidth memory and 3D chiplet stacking.

    Source quote
    “Applied is the overall leader in this market with strong positions in high bandwidth memory and 3D chiplet stacking and we now expect our overall packaging revenues to grow...”
  3. Figure

    3 years ago, implemented a systematic approach to value based pricing, And today, you can see the benefits reflected in Applied Materials' strong...

  4. Fading

    Focus has shifted from operating leverage to accelerating AI adoption and how Applied enables the AI roadmap.

    Source quote
    “provide an update on how our markets are evolving, explain how Applied is enabling the AI road map with our differentiated... Over the past several months, global AI adoption has continued to accelerate as improvements in the performance and cost of AI computing are translating into real-world applications that deliver compelling returns for users.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Upbeat (was upbeat)

Upbeat — about as upbeat as in Q1 2026.

Sentences that drove the tone
“The rapid global build out of AI infrastructure combined with Applied's leadership position in the most enabling and highest value technologies for AI computing provide the company with an exceptionally...”
“In summary, the rapid adoption of AI that we have been investing for is driving strong growth and record revenue and profitability for Applied Materials.”
“This increased demand visibility gives us high confidence that 2027 will be another strong growth year for applied materials.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-26)

Metric Q2 2026period end 2026-07-26 Q1 2026period end 2026-04-26 Change Q2 2025 YoY
Revenue 9.12B 7.91B +15.2% 7.30B +24.8%
Gross profit 4.59B 3.95B +16.2% 3.56B +28.7%
Operating income 3.08B 2.52B +21.9% 2.23B +37.7%
Net income 2.54B 2.81B −9.6% 1.78B +42.7%
EPS 3.17 3.51 −9.7% 2.22 +42.8%
P/E today 46.8 46.3 39.2 +7.1 22.2 +24.1

Topics

Most discussed now

  • Those are the fastest growing parts of the market.
  • Cloud service providers continue to increase their investments in AI infrastructure.
  • What Applied Materials is hearing from customers with these 8-quarter rolling forecast is very strong multiyear demand I really wanna…
  • I have high confidence that Applied Materials is gonna continue to drive significant growth and gain share in this segment.
  • As customers move quickly, to bring new fab capacity online, while simultaneously optimizing yield, and output of their existing…

Faded since Q1 2026

  • Dropped I'm curious how that might be causing order patterns to change, perhaps upfront payments, a change in the pricing environment.
  • Fading Applied Materials is deploying AI to drive new scientific breakthroughs, accelerate research and development programs, optimize factory and…
  • Fading Customers have been using a variety of techniques to increase clean room capacity this year, which is growing the market...
  • Fading Pricing moves relatively slowly in the environment.

Latest announcements

Official filings, newest first.

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