A month has gone by since the last earnings report for MKS (MKSI Quick QuoteMKSI - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is MKS due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for MKS Inc. before we dive into how investors and analysts have reacted as of late.

MKSI Q3 Earnings Beat Estimates, Revenues Up Y/Y

MKS Inc. 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.

MKSI Q3 Top-Line Details

Product 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 30.85% due to these changes.

VGM Scores

Currently, MKS has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, MKS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

MKS is part of the Zacks Electronics - Miscellaneous Products industry. Over the past month, Timken (TKR Quick QuoteTKR - Free Report) , a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended September 2025 more than a month ago.

Timken reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $1.37 for the same period compares with $1.23 a year ago.

For the current quarter, Timken is expected to post earnings of $1.09 per share, indicating a change of -6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Timken. Also, the stock has a VGM Score of B.