Applied Materials Posts Record Margins, Sees 'Unprecedented Visibility' Into 2027
AMAT has more than doubled off its 52-week low of $154.465.
Summary
Applied Materials delivered a blowout Q3 with revenue of $9.12B (up 25% YoY) and adjusted EPS of $3.50, both beating estimates. Record adjusted gross margin of 50.4% and operating margin of 34% show pricing power and operating leverage. DRAM revenue surged 52% YoY on AI-driven high-bandwidth memory demand. Management guided Q4 revenue to $10.25B, well above the $9.54B consensus, and said customer conversations now extend to 2030, giving 'unprecedented visibility' into another record year in 2027. Despite the strong results, shares fell 5.41% premarket, likely on profit-taking after a 184% 12-month run. The company returned $860M to shareholders in Q3 and has $12.8B remaining on its buyback.
At the time of this announcement, AMAT was trading at $505.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $424.4B. The 52-week trading range was $154.47 to $739.67. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.