AMAT · PEAD ↓ 36

Applied Materials reported Q2 FY2026 EPS of $3.51 on 2026-05-14, beating the $2.69 consensus by $0.82 (+30.5%).

Print-day reaction was a modest +0.9% versus the prior close, a notably muted response to a substantial earnings beat. The overnight gap to the next open turned sharply negative at -2.8%, signalling meaningful after-hours selling pressure that erased the initial gain. Over the following two trading sessions the price drifted a further -6.8%, a decisive reversal that overwhelmed the print-day move. Cumulative abnormal return of -5.6% versus SPY.US puts this squarely in PEAD short territory; per the documented drift pattern, the read holds through 2026-08-11.