Applied Materials set to report earnings with $4.06 EPS estimate

The chip equipment maker does not produce the chips that power AI models but rather manufactures the equipment that chipmakers need to build them. If Applied Materials delivers on Wall Street's expectations, the figures would mark approximately 51% revenue growth and 87% EPS growth from a year earlier.

Analyst expectations

The consensus calls for $10.30 billion in revenue and $4.06 in non-GAAP EPS. Applied Materials' own guidance midpoint sits slightly below at $10.25 billion in revenue and $4.02 in EPS. The year-ago comparison makes the expected growth look even more dramatic, with the company posting $6.80 billion in revenue and EPS of $2.17 in fiscal Q4 of the previous year.

AI-driven growth

The growth story traces back to demand for wafer fabrication equipment tied to artificial intelligence, particularly in leading-edge logic, DRAM, and advanced packaging. To maintain its position, Applied Materials announced a $5 billion EPIC center in Silicon Valley on October 12, 2026, with TSMC and Intel as partners. On October 26, the company increased its stake in BE Semiconductor Industries to about 20%, which operates in advanced packaging.

Investor focus

AMAT shares recently traded near $395 amid broader market volatility, with analysts maintaining Buy ratings but varying price targets. Since consensus sits slightly above the company's guidance midpoint, simply meeting guidance could appear disappointing to some traders. Last quarter, Applied beat estimates by about 3%.

For the broader semiconductor sector, Applied Materials serves as an early indicator of capital spending trends. After the bell, investors will watch revenue and EPS against consensus, guidance for the coming quarter, and management's perspective on segment demand and recent strategic investments.