Applied Materials Shares Surge 12% on Q1 Beat and 20% Sales Outlook
Applied Materials shares jumped 12% after reporting fiscal Q1 results that beat EPS and revenue estimates by 7%, driven by semiconductor equipment demand. CEO projects 20% sales growth and Q2 revenue of $7.65 billion, leading to two broker upgrades and raising the average price target to $435, implying 20% upside.
1. Strong Q1 Results and Share Rally
Applied Materials beat Q1 EPS and revenue estimates by 7% as equipment demand surged in flash memory, logic manufacturing and DRAM segments, driving a 12% stock rally on results day.
2. Aggressive 2026 Sales Guidance
CEO forecast 20% sales growth for calendar 2026 and guided Q2 revenue near $7.65 billion, backed by expanding orders in Semiconductor Systems and Applied Global Services.
3. Analyst Upgrades and Price Target Increase
Two brokerages raised ratings to Buy, and 17 analysts lifted the average price target to $435, reflecting a potential 20% upside from current levels.