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MKSI Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
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Key Takeaways
MKS Instruments' Q3 earnings rose 12.2% year over year, beating estimates by 7.22%.
Revenues grew 10.3% to $988 million, driven by strong product and Electronics & Packaging sales.
MKSI projects Q4 revenues of about $990 million and non-GAAP EPS near $2.27 per share.
MKS Inc. (MKSI - Free Report) reported third-quarter 2025 adjusted earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 7.22%. The figure increased 12.2% year over year.
Revenues of $988 million beat the consensus mark by 2.7% and increased 10.3% year over year.
Following third-quarter 2025 results on Wednesday, MKSI shares closed at $155.25, up 10.96% on Thursday. MKS shares have returned 48.7% year to date, outperforming the broader Zacks Computer and Technology sector’s 25.1% return.
MKSI Q3 Top-Line Details
Products revenues (87% of total revenues) totaled $860 million, up 10.8% year over year. Services revenues (13% of total revenues) increased 6.7% year over year to $128 million.
Revenues from the Semiconductor market (42% of total revenues) increased 9.8% year over year to $415 million. Electronics & Packaging revenues (29.3% of total revenues) amounted to $289 million, up 25.1% year over year. Specialty Industrial revenues (28.7% of total revenues) declined 1% year over year to $284 million.
Revenues from the Vacuum Solutions (39.1% of total revenues) increased 11.9% year over year to $386 million. Photonics Solutions revenues (25.2% of total revenues) totaled $249 million, down 0.8% year over year. Materials Solutions revenues (35.7% of total revenues) climbed 17.7% year over year to $353 million.
MKSI’s Q3 Operating Details
In the third quarter of 2025, the adjusted gross margin contracted 160 basis points (bps) on a year-over-year basis to 46.7%.
Adjusted EBITDA increased 3.4% year over year to $240 million. Adjusted EBITDA margin contracted 160 bps year over year to 24.3%.
Total operating expenses increased 8% year over year to $256 million in the reported quarter.
MKS reported a non-GAAP operating income of $205 million, up 5.1% year over year. The adjusted operating margin contracted 100 bps year over year to 20.7%.
MKSI’s Balance Sheet
As of Sept. 30, 2025, MKS Instruments had cash and cash equivalents of $697 million compared with $674 million as of June 30. As of Sept. 30, 2025, long-term debt totaled $4.25 billion.
Cash flow from operations was $197 million in the third quarter of 2025 compared with $165 million in the previous quarter.
Free cash flow was $147 million compared with $136 million in the second quarter of 2025.
MKSI’s Q4 Guidance
MKSI expects fourth-quarter 2025 revenues of $990 million (+/- $40 million).
MKS expects gross margin of 46% (+/- 1%). The company expects an adjusted EBITDA of $235 million (+/- 24 million).
On a non-GAAP basis, MKSI expects earnings of $2.27 (+/- 34 cents) per share.
Long term earnings growth rate for Amphenol, Digital Turbine and ASML Holding is currently pegged at 26.83%, 42.42% and 20.87%, respectively. Shares of Amphenol, Digital Turbine and ASML Holding have appreciated 98.8%, 270.4% and 48.5%, respectively.
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MKSI Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
MKS Inc. (MKSI - Free Report) reported third-quarter 2025 adjusted earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 7.22%. The figure increased 12.2% year over year.
Revenues of $988 million beat the consensus mark by 2.7% and increased 10.3% year over year.
Following third-quarter 2025 results on Wednesday, MKSI shares closed at $155.25, up 10.96% on Thursday. MKS shares have returned 48.7% year to date, outperforming the broader Zacks Computer and Technology sector’s 25.1% return.
MKSI Q3 Top-Line Details
Products revenues (87% of total revenues) totaled $860 million, up 10.8% year over year. Services revenues (13% of total revenues) increased 6.7% year over year to $128 million.
MKS Inc. Price, Consensus and EPS Surprise
MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote
Revenues from the Semiconductor market (42% of total revenues) increased 9.8% year over year to $415 million. Electronics & Packaging revenues (29.3% of total revenues) amounted to $289 million, up 25.1% year over year. Specialty Industrial revenues (28.7% of total revenues) declined 1% year over year to $284 million.
Revenues from the Vacuum Solutions (39.1% of total revenues) increased 11.9% year over year to $386 million. Photonics Solutions revenues (25.2% of total revenues) totaled $249 million, down 0.8% year over year. Materials Solutions revenues (35.7% of total revenues) climbed 17.7% year over year to $353 million.
MKSI’s Q3 Operating Details
In the third quarter of 2025, the adjusted gross margin contracted 160 basis points (bps) on a year-over-year basis to 46.7%.
Adjusted EBITDA increased 3.4% year over year to $240 million. Adjusted EBITDA margin contracted 160 bps year over year to 24.3%.
Total operating expenses increased 8% year over year to $256 million in the reported quarter.
MKS reported a non-GAAP operating income of $205 million, up 5.1% year over year. The adjusted operating margin contracted 100 bps year over year to 20.7%.
MKSI’s Balance Sheet
As of Sept. 30, 2025, MKS Instruments had cash and cash equivalents of $697 million compared with $674 million as of June 30. As of Sept. 30, 2025, long-term debt totaled $4.25 billion.
Cash flow from operations was $197 million in the third quarter of 2025 compared with $165 million in the previous quarter.
Free cash flow was $147 million compared with $136 million in the second quarter of 2025.
MKSI’s Q4 Guidance
MKSI expects fourth-quarter 2025 revenues of $990 million (+/- $40 million).
MKS expects gross margin of 46% (+/- 1%). The company expects an adjusted EBITDA of $235 million (+/- 24 million).
On a non-GAAP basis, MKSI expects earnings of $2.27 (+/- 34 cents) per share.
Zacks Rank & Other Stocks to Consider
Currently, MKSI carries a Zacks Rank #2 (Buy).
Amphenol (APH - Free Report) , Digital Turbine (APPS - Free Report) and ASML Holding (ASML - Free Report) are top-ranked stocks in the broader sector. Each of the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long term earnings growth rate for Amphenol, Digital Turbine and ASML Holding is currently pegged at 26.83%, 42.42% and 20.87%, respectively. Shares of Amphenol, Digital Turbine and ASML Holding have appreciated 98.8%, 270.4% and 48.5%, respectively.