Applied Materials Q1 EPS Seen at $2.19 with 8% Decline; AI Demand Drives Growth
Applied Materials will report fiscal Q1 on Feb.12 with analysts expecting EPS of $2.19, a roughly 8% year-over-year decline, while researchers highlight AI-driven chip demand and services segment strength as growth vectors. The company’s Earnings ESP stands at +3.06% and carries a Zacks Rank #2 rating.
1. Q1 Preview and Expectations
Applied Materials will report fiscal Q1 on Feb.12, with analysts expecting $2.19 per share in earnings, marking an approximate 8% decline from the year-ago quarter. Revenue forecasts also imply a contraction as equipment order cycles soften relative to the prior year.
2. Growth Drivers
Key growth drivers include accelerating demand for AI-driven chips and expansion in the services division, which management cites as a stabilizing force during equipment order cycles. The services segment has benefited from increased maintenance contracts and software upgrades tied to AI workload deployments.
3. Analyst Sentiment and Ratings
The stock carries an Earnings ESP of +3.06% and a Zacks Rank #2, suggesting modest upside potential before results. Analysts are also evaluating metrics beyond top-line and EPS, including order backlogs and utilization rates, to gauge operational resilience.