It has been about a month since the last earnings report for Entegris (ENTG Quick QuoteENTG - Free Report) . Shares have lost about 9.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Entegris due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Entegris Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Entegris, Inc. reported second-quarter 2026 non-GAAP earnings of 93 cents per share, up 40.9% year over year. The figure beat the Zacks Consensus Estimate of 83 cents by 12.1%, reflecting stronger semiconductor demand, operational execution and accelerating customer capital investment.

Net sales increased 11.5% to $883.2 million and topped the consensus estimate of $840 million by 5.2%. Unit-driven revenues rose 10%, while capital expenditure-related revenues advanced 15%, supported by AI-linked investments across advanced logic, memory and packaging.

ENTG's APS Growth Leads Segment Momentum

Advanced Purity Solutions revenues climbed 17% year over year to $514.6 million. Growth reflected strength across both unit-driven and capital expenditure-related demand, with liquid filtration delivering a fourth consecutive record quarter.

The microenvironments business, led by front-opening unified pods, posted its strongest performance in more than three years. Taiwan benefited from leading-edge logic and advanced packaging expansions, while North America returned to year-over-year growth. Adjusted segment margin expanded to 30.3% from 24.1%.

Entegris' Materials Business Gains Speed

Materials Solutions revenues rose 4.6% year over year to $371.3 million. Advanced deposition materials, selective etch chemistries and chemical mechanical planarization products drove the increase.

Adjusted segment profit was $77.7 million, up 2.9%, while adjusted segment margin eased to 20.9% from 21.3%. Higher raw-material and logistics costs, along with planned direct-labor investments, were largely offset by manufacturing improvements and productivity initiatives.

ENTG Expands Margins on Better Execution

Adjusted gross margin expanded to 47.6% from 44.6% a year earlier and improved from 46.9% in the first quarter. Management attributed the sequential gain to operational progress despite investments to support future demand.

Non-GAAP operating expenses increased 8.3% year over year to $203.9 million, mainly due to higher variable compensation tied to stronger business performance. Even so, adjusted operating margin widened to 24.5% from 20.9%, and adjusted EBITDA margin rose to 28.4% from 27.3%.

Entegris Strengthens Cash Flow and Leverage

The company generated operating cash flow of $156.2 million in the second quarter, while capital expenditures were $39.3 million. Free cash flow totaled $120.3 million in the second quarter, representing roughly 14% of sales and more than doubling from $47 million in the year-ago quarter. In the first half of 2026, Entegris generated operating cash flow of $339.2 million and free cash flow of $263.8 million.

ENTG repaid $200 million of debt during the quarter, reducing long-term debt to $3.46 billion. It ended the second quarter with cash and cash equivalents of $353.6 million. The company’s net leverage improved to 3.4 times, and management now expects leverage to finish 2026 below three times.

ENTG Sees Broader Semiconductor Investment Cycle

Management raised its 2026 market expectation to 7%-8% growth in million square inches of wafers, up from the mid-single-digit assumption at the start of the year. The outlook reflects stable advanced logic and memory expectations, along with a modestly improving mainstream logic environment.

The company is tracking more than 20 major leading-edge capacity expansions globally, including advanced logic, advanced memory and advanced packaging projects. Bookings strengthened during the quarter, lifting backlog and increasing visibility into customer spending plans through the second half of 2026 and into 2027.

Entegris Initiates Q3 Guidance

For the third quarter of 2026, Entegris expects sales between $905 million and $935 million. GAAP earnings are projected in the range of 75-83 cents per share, while non-GAAP earnings are forecast between 96 cents and $1.04.

The company expects an adjusted EBITDA margin of 28%-29% and an adjusted operating margin of 24.2%-25.1%. Management also sees fourth-quarter revenues rising about 4% from the midpoint of third-quarter guidance, which would represent mid-teens year-over-year growth.

For 2026, ENTG expects net interest expense of approximately $180 million, a non-GAAP tax rate of about 14% and capital expenditures of $250 million. The share count is projected at roughly 154 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 11.47% due to these changes.

VGM Scores

At this time, Entegris has a nice Growth Score of B, a score with the same score on the momentum front. However, 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 C. 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 Entegris has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Entegris belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM Quick QuoteQCOM - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Qualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago.

For the current quarter, Qualcomm is expected to post earnings of $2.18 per share, indicating a change of -27.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.

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