Report published August 13, 2026
Applied Materials (AMAT): Goldman Sachs Research & 2027 Growth Outlook
Source and citation context
- Issuer
- Goldman Sachs
- Report date
- August 13, 2026
- Analysis as of
- August 13, 2026
Authors / editors: James Schneider, Anmol Makkar, Luya You, Khalil Fenina
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Goldman Sachs maintained its Buy rating (Conviction List) on Applied Materials (AMAT) and raised its price target to $670 following solid 2Q results and 3Q revenue guidance ($10.25bn midpoint) well ahead of consensus. The analysts expect AMAT to gain market share and benefit from accelerating WFE spending in 2027 due to its strong positioning in deposition, etch, DRAM, and advanced packaging.
Key Takeaways
- 1.Applied Materials reported solid 2Q results with revenue of $9.12bn and Non-GAAP EPS of $3.50, while issuing 3Q revenue guidance of $10.25bn (midpoint), significantly exceeding consensus.
- 2.Goldman Sachs raised its 12-month price target on AMAT to $670 from $645 and maintained its Buy rating (on the Conviction List), driven by outsized exposure (>60%) to deposition and etch.
- 3.Goldman Sachs raised CY26-CY28 non-GAAP EPS estimates by an average of 14% on higher revenue and gross margin assumptions ahead of expected market share gains and accelerating WFE growth in 2027.
Table of Contents
- Exhibit 1: Applied Materials - Variance summary
- Exhibit 2: Applied Materials - Guidance
- Exhibit 3: AMAT - Old vs. New CY estimates
- Exhibit 4: Price Target
- Disclosure Appendix
Report data
Exhibit 1: Applied Materials - Variance summary — as of August 13, 2026.
| Metric | Estimate | Context |
|---|---|---|
| 2Q26 Revenue | 9.12 USD Billion | Actual reported revenue vs GS $9.14 bn and Street $9.04 bn |
| 2Q26 Non-GAAP EPS | 3.50 USD | Actual EPS vs GS $3.56 and Street $3.42 |
| 3Q26 Revenue Guidance Midpoint | 10.25 USD Billion | Guided range $9.75bn - $10.75bn vs Street $9.66bn |
| 3Q26 Non-GAAP EPS Guidance Midpoint | 4.02 USD | Guided range $3.82 - $4.22 vs Street $3.73 |
| 12-Month Price Target | 670.00 USD | Raised from $645 based on 32x multiple on $21.00 normalized EPS estimate |
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Authors / Editors
Reported Data Context
- 2Q26 Revenue: 9.12 USD Billion (2Q26) · Source: Company data
- 2Q26 Non-GAAP EPS: 3.50 USD (2Q26) · Source: Company data
- 3Q26 Revenue Guidance Midpoint: 10.25 USD Billion (3Q26) · Source: Company data
- 3Q26 Non-GAAP EPS Guidance Midpoint: 4.02 USD (3Q26) · Source: Company data
- 12-Month Price Target: 670.00 USD (12-Month) · Source: Goldman Sachs Global Investment Research
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