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MKS (MKSI) Up 9.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for MKS (MKSI - Free Report) . Shares have added about 9.8% 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 catalysts for MKS Inc. before we dive into how investors and analysts have reacted as of late.
MKS Inc.’s first-quarter 2026 non-GAAP earnings of $2.30 per share increased 34.5% year over year. The figure surpassed the Zacks Consensus Estimate by 15.21%.
Revenues came in at $1.08 billion, rising 15.2% from the year-ago quarter and beating the Zacks Consensus Estimate by 2.95%. Strength was supported by broad-based demand tied to AI-related investment.
Product revenues (88.5% of total revenues) totaled $954 million, up 16.5% year over year. Services revenues (11.5% of total revenues) increased 6% year over year to $124 million.
MKSI Q1 Top-Line Details
Semiconductor end-market revenues totaled $466 million (43.2% of total revenues), increasing 13% year over year, with management citing broad-based growth across products aimed at DRAM, NAND and foundry/logic applications. The company also pointed to sequential improvement in power solutions as NAND equipment upgrades increased.
Electronics & Packaging revenues rose 27% year over year to $321 million, and contributed 29.8% of total revenue in the reported quarter. The company attributed the performance to strength in flexible PCB drilling systems supported by consumer electronics seasonality, along with solid results in chemistry and chemistry equipment.
Specialty Industrial revenues increased 8% from the prior-year period to $291 million and contributed 27% of total revenues, even as results reflected a sequential dip tied largely to Lunar New Year seasonality. The company cited year-over-year strength, driven by datacom and defense markets.
MKSI’s Q1 Operating Details
In the first quarter of 2026, gross margin contracted 40 basis points (bps) on a year-over-year basis to 47%.
Adjusted EBITDA increased 17.4% year over year to $277 million. Adjusted EBITDA margin expanded 50 bps year over year to 25.7%.
Non-GAAP operating expenses were $271 million, and the company flagged higher R&D investment and a seasonal lift in stock-based compensation as key contributors to spending levels.
On a non-GAAP basis, operating margin expanded 160 bps to 21.8% from 20.2% a year ago, reflecting revenue growth and operating leverage.
MKSI’s Balance Sheet
As of March 31, 2026, MKS Instruments had cash and cash equivalents of $569 million compared with $675 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt totaled $2.65 billion.
Cash flow from operations was $53 million in the first quarter of 2026 compared with $142 million in the previous quarter.
The free cash flow was $29 million compared with $91 million in the first quarter of 2025.
MKS anticipates a gross margin of 47% (+/- 1%). The company expects an adjusted EBITDA of $328 million (+/- 26 million).
On a non-GAAP basis, MKSI expects earnings of $2.90 (+/- 30 cents) per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 25.39% due to these changes.
VGM Scores
At this time, MKS has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. 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. It comes with little surprise MKS has a Zacks Rank #1 (Strong Buy). We expect an above average 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, Teradyne (TER - Free Report) , a stock from the same industry, has gained 14.9%. The company reported its results for the quarter ended March 2026 more than a month ago.
Teradyne reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +87%. EPS of $2.56 for the same period compares with $0.75 a year ago.
Teradyne is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +249.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Teradyne has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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MKS (MKSI) Up 9.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for MKS (MKSI - Free Report) . Shares have added about 9.8% 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 catalysts for MKS Inc. before we dive into how investors and analysts have reacted as of late.
MKSI Q1 Earnings Beat Estimates, Revenue Increase Y/Y
MKS Inc.’s first-quarter 2026 non-GAAP earnings of $2.30 per share increased 34.5% year over year. The figure surpassed the Zacks Consensus Estimate by 15.21%.
Revenues came in at $1.08 billion, rising 15.2% from the year-ago quarter and beating the Zacks Consensus Estimate by 2.95%. Strength was supported by broad-based demand tied to AI-related investment.
Product revenues (88.5% of total revenues) totaled $954 million, up 16.5% year over year. Services revenues (11.5% of total revenues) increased 6% year over year to $124 million.
MKSI Q1 Top-Line Details
Semiconductor end-market revenues totaled $466 million (43.2% of total revenues), increasing 13% year over year, with management citing broad-based growth across products aimed at DRAM, NAND and foundry/logic applications. The company also pointed to sequential improvement in power solutions as NAND equipment upgrades increased.
Electronics & Packaging revenues rose 27% year over year to $321 million, and contributed 29.8% of total revenue in the reported quarter. The company attributed the performance to strength in flexible PCB drilling systems supported by consumer electronics seasonality, along with solid results in chemistry and chemistry equipment.
Specialty Industrial revenues increased 8% from the prior-year period to $291 million and contributed 27% of total revenues, even as results reflected a sequential dip tied largely to Lunar New Year seasonality. The company cited year-over-year strength, driven by datacom and defense markets.
MKSI’s Q1 Operating Details
In the first quarter of 2026, gross margin contracted 40 basis points (bps) on a year-over-year basis to 47%.
Adjusted EBITDA increased 17.4% year over year to $277 million. Adjusted EBITDA margin expanded 50 bps year over year to 25.7%.
Non-GAAP operating expenses were $271 million, and the company flagged higher R&D investment and a seasonal lift in stock-based compensation as key contributors to spending levels.
On a non-GAAP basis, operating margin expanded 160 bps to 21.8% from 20.2% a year ago, reflecting revenue growth and operating leverage.
MKSI’s Balance Sheet
As of March 31, 2026, MKS Instruments had cash and cash equivalents of $569 million compared with $675 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt totaled $2.65 billion.
Cash flow from operations was $53 million in the first quarter of 2026 compared with $142 million in the previous quarter.
The free cash flow was $29 million compared with $91 million in the first quarter of 2025.
MKSI’s Q2 Guidance
MKSI expects second-quarter 2026 revenues of $1.20 billion (+/- $40 million).
MKS anticipates a gross margin of 47% (+/- 1%). The company expects an adjusted EBITDA of $328 million (+/- 26 million).
On a non-GAAP basis, MKSI expects earnings of $2.90 (+/- 30 cents) per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 25.39% due to these changes.
VGM Scores
At this time, MKS has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. 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. It comes with little surprise MKS has a Zacks Rank #1 (Strong Buy). We expect an above average 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, Teradyne (TER - Free Report) , a stock from the same industry, has gained 14.9%. The company reported its results for the quarter ended March 2026 more than a month ago.
Teradyne reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +87%. EPS of $2.56 for the same period compares with $0.75 a year ago.
Teradyne is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +249.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Teradyne has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.