As you might know, Applied Materials, Inc. (NASDAQ:AMAT) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.8% to hit US$7.9b. Applied Materials also reported a statutory profit of US$3.51, which was an impressive 30% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Applied Materials from 34 analysts is for revenues of US$33.2b in 2026. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 21% to US$13.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$31.6b and earnings per share (EPS) of US$11.14 in 2026. So it seems there's been a definite increase in optimism about Applied Materials' future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to US$506per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Applied Materials at US$575 per share, while the most bearish prices it at US$355. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Applied Materials' past performance and to peers in the same industry. It's clear from the latest estimates that Applied Materials' rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Applied Materials to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Applied Materials following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Applied Materials analysts - going out to 2028, and you can see them free on our platform here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.