Operational Controller

Susquehanna analyst Mehdi Hosseini has set a $900 price target on Applied Materials, implying roughly 68% upside from current levels. The Street-high call stands well above the consensus target of $629. Applied Materials shares fell nearly 10% last month amid a sector-wide selloff, though they rebounded 22% in the past week. The company's chief executive raised 2026 equipment growth guidance above 30%. Hosseini's bull case centres on three factors: market share gains in advanced packaging technologies used for AI accelerators, increased equipment intensity as foundries move to 2nm processes, and sustained AI infrastructure spending. Applied Materials reported 11.4% revenue growth in its latest quarter, though free cash flow fell 80% year over year on working capital consumption. China represents 26% of revenue.

AI smart glasses and myopia management portfolio drive Q2 and first half revenue growth for EssilorLuxottica. Tuesday, July 28, 2026 5:00 PM PARIS, France - EssilorLuxottica (Reuters: ESLX.PA) announced on Tuesday its second quarter and first-half 2026 financial results for the period ended June 30, 2026. During the initial six months of the year, revenue grew by 5.7 percent year-over-year to €14,818 million, representing a 9.7 percent increase at constant exchange rates with broad-based contributions from all business segments and regions, the company said. For the second quarter, the group recorded €7,692 million in revenue, marking a year-over-year increase of 7.2 percent and an 8.7 percent rise at constant exchange rates. According to the company, second-quarter revenue growth was driven by a near doubling of sales from AI glasses produced in partnership with Meta as well as a 24 percent increase in revenue from its myopia portfolio over the same period. During a conference call, Stefano Grassi, EssilorLuxottica CFO, noted that the company's Stellest glasses for myopia management are currently in 11,000 doors in the U.S. In the first half of 2026, North America, EMEA and Latin America all saw high-single digit revenue growth in Q2, with Asia-Pacific up double digits, the company reported. Sales in North America grew 9.9 percent at constant exchange rates. "We're proud to report a successful first half, delivering nearly double-digit revenue growth while increasing adjusted operating profit by 15 percent at constant currency. Once again, our performance reflects the power of our strategy and our ability to execute with excellence as we continue to transform our industry," said Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO, EssilorLuxottica. "We drove strong momentum across all regions and businesses, fueled by our vision care and eyewear innovation and the expansion of our distribution network, with Top Charoen in Thailand further strengthening our global footprint," they added added, referring to EssilorLuxottica's acquisition of a significant stake in Top Charoen, a retail chain with over 2,000 stores located across Thailand, in April of this year. The group's sales channels also expanded, as Direct to Consumer outperformed Professional Solutions, the company said. Furthermore, comparable-store sales growth increased to 8 percent during the second quarter, up from 7 percent recorded in the first quarter. Both optical and sun banners contributed equally across regions, the company noted. The myopia management lens portfolio continued its strong growth, increasing by 24 percent in the second quarter. This was driven by supportive clinical evidence regarding solution efficacy and a broad range of technologies and price points. Meanwhile, AI glasses saw exponential growth, with sales nearly doubling in the second quarter compared to the previous year. | / | Francesco Milleri (l) and Paul du Saillant. | "We made significant progress across our key growth drivers, from the acceleration of our myopia management portfolio to the sustained success of AI-powered wearables, driven by our iconic Ray-Ban and Oakley brands and our core expertise," Milleri and du Saillant said. "While doing so, Visionmonday continued to invest in the future, reinforcing its leadership to develop the next generation of intelligent optical systems through its partnership with Applied Materials. "Supported by an increasingly integrated business and industrial platform, and as we double down on the capabilities and technologies that will shape the future of our industry, the dedication and talent of our colleagues around the world remain our greatest asset," they added. "With these foundations in place, we've never been better positioned to seize the opportunities ahead and accelerate our next chapter of growth." Adjusted gross profit amounted to €9,411 million in the six months, reaching 63.5 percent of revenue, 10 basis points higher than 2025 at both current and constant exchange rates, the company said. The adjusted operating profit reached €2,751 million in the six months, representing 18.6 percent of revenue, compared to 18.1 percent in 2025. Adjusted group net profit amounted to €1,921 million in the six months, representing 13.0 percent of revenue, compared with 12.8 percent in 2025 percent. International Financial Reporting Standards operating profit and the group net profit reported in the consolidated financial statements amounted to €2,296 million and €1,566 million respectively in the six months, the company said. Consolidated free cash flow amounted to €1.07 billion in the six months compared with €0.96 billion in 2025. The company said its long-term outlook involves scaling its AI-driven healthcare platform and moving toward leadership in advanced and integrated eye health. Over the next five years, the company plans to deliver consistent revenue growth and aligned growth of adjusted operating profit at constant exchange rates. In June, EssilorLuxottica and Meta announced the launch of Meta Glasses, a new collection of AI glasses starting at $299, designed to expand the smart eyewear category to a broader audience. The product joins a lineup that includes Ray-Ban Meta, the Oakley Meta, and the in-lens Meta Ray-Ban Display. Earlier this year, they also added Ray-Ban Meta Optics. Also during the second quarter, EssilorLuxottica, together with the National Secretariats, the National Coordinators and the Trade Union Coordination of Filctem CGIL, Femca CISL and Uiltec UIL, announced the introduction of its first wearable production lines in Italy, starting in the second half of the year. The initiative will initially focus on the company's Agordo plant, where an entire production area will be converted to support the new industrial activities, with operations set to begin by early 2027.

China has reportedly begun mass-producing domestic immersion DUV lithography machines, introducing new competitive and geopolitical risks for Applied Materials. The development could potentially reduce demand for Western chip equipment suppliers in Chinese fabs amid ongoing export controls. Applied Materials' investment case relies on AI-driven demand for advanced chips and packaging offsetting cyclical swings and export uncertainty in China, its largest market. The company recently announced new systems for 2-nanometre and advanced 3D architectures, including the Viva nanosheet engineering platform and advanced ALD and etch tools. Applied Materials' strength in deposition, etch, metrology, and packaging may help offset pressure from Chinese fabs using local lithography. However, growing Asian equipment competition and export limits present long-term competitive risks.