Shares of Applied Materials moved upward during Monday's trading session, climbing approximately 1.2% to $326.33. The advance coincided with broader strength across the semiconductor equipment sector, as tracked by the iShares Semiconductor ETF, which gained 1.3%.
Earnings Focus
Investor attention is firmly fixed on the company's upcoming fiscal first-quarter 2026 report, scheduled for release after the U.S. market closes on Thursday, February 12. An earnings conference call is set to follow at 4:30 p.m. Eastern Time.
Analysts project earnings of $2.19 per share on revenue of $6.89 billion. These figures represent a decline from the prior year's performance. A key area of concern remains the company's sales in China, which are expected to show a year-over-year softening, partly due to tightened U.S. export controls on advanced chip manufacturing equipment.
China Exposure and Guidance in Focus
The impact of U.S. export restrictions continues to be a significant variable for Applied Materials' financial outlook. The company has previously indicated that expanded rules could reduce fiscal 2026 sales by roughly $600 million related to certain China-based customers. During the last quarter, CEO Gary Dickerson noted that non-U.S. equipment firms face fewer restrictions, potentially shifting market share within China even when customers prefer American suppliers.
For Thursday's report, market participants are likely to prioritize the company's forward-looking guidance over whether it merely meets or misses consensus estimates. Key points of interest will include commentary on new order trends, demand for services, and the pace of customer spending on expanding manufacturing capacity versus maintaining existing tools.
Among its peers, ASML shares were up about 1.6%, while KLA added roughly 0.5%. Lam Research saw a slight decline of approximately 0.7% in late morning trading.
