We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is MKS (MKSI) Down 14.3% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for MKS (MKSI - Free Report) . Shares have lost about 14.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MKS 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 latest earnings report in order to get a better handle on the important catalysts.
MKSI Q2 Earnings Beat Estimates, Revenues Increase Year Over Year
MKS Inc. reported second-quarter 2026 non-GAAP earnings of $3.30 per share, up 86.4% year over year. The figure beat the Zacks Consensus Estimate by 12.24%.
Revenues rose 28.3% year over year to $1.25 billion and surpassed the consensus mark by 3.06%. Growth was broad-based across all three end markets, led by Electronics & Packaging, while adjusted EBITDA margin expanded to 28.6%.
MKSI's Q2 Revenue Mix Strengthens
Product revenues, which accounted for 88.5% of total revenues, increased 30.2% year over year to $1.10 billion. The performance reflected stronger demand across the company’s semiconductor, electronics and packaging and specialty industrial businesses.
Services revenues totaled $144 million, representing 11.5% of revenues. The figure increased 15.2% from the year-ago quarter, supporting the company’s overall double-digit top-line expansion.
MKS' End Markets Post Broad Growth
Semiconductor revenues increased 28.2% year over year to $554 million and represented 44.4% of total revenues. Management highlighted accelerating AI-driven investment across semiconductor and advanced packaging applications, along with rapidly growing order volumes.
Electronics & Packaging revenues increased 44% to $381 million, contributing 30.5% of revenues. Specialty Industrial revenues rose 13.8% to $313 million and accounted for 25.1% of the quarterly total. The gains across each end market underscored the breadth of demand in the quarter.
MKSI's Operating Details
Gross margin expanded 100 basis points year over year to 47.6%. Non-GAAP operating income totaled $320 million, while the non-GAAP operating margin improved 480 basis points to 25.6%.
Non-GAAP operating expenses were $275 million compared with $251 million a year earlier.
Adjusted EBITDA climbed 49.2% year over year to $358 million. Adjusted EBITDA margin rose 390 basis points to 28.6%, reflecting stronger revenue and improved profitability.
GAAP income from operations increased to $251 million from $135 million in the prior-year quarter. The operating margin expanded 620 basis points to 20.1%, benefiting from the higher revenue base and improved gross margin.
MKSI's Cash Flow and Balance Sheet
As of June 30, 2026, MKS had cash and cash equivalents of $611 million compared with $569 million as of March 31, 2026.
As of June 30, 2026, long-term debt totaled $2.54 billion.
Net cash provided by operating activities was $243 million in the second quarter, up 47.3% year over year. Capital expenditures totaled $55 million, resulting in free cash flow of $188 million compared with $136 million in the prior-year quarter.
MKS' Q3 Outlook Signals Momentum
For the third quarter of 2026, MKS expects revenues of $1.35 billion, plus or minus $40 million. Gross margin is projected to be 47%, plus or minus 1 percentage point, while non-GAAP operating expenses are expected to be $280 million, plus or minus $5 million.
The company forecasts non-GAAP earnings of $3.58 per share, plus or minus 31 cents.
Adjusted EBITDA is expected to be $395 million, plus or minus $28 million. Management noted that the outlook reflects the current business environment, including U.S. import tariffs and retaliatory actions by other countries.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 8.69% due to these changes.
VGM Scores
At this time, MKS has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade 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. It comes with little surprise MKS has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
View the Zacks #1 Rank List
Image: Bigstock
Why Is MKS (MKSI) Down 14.3% Since Last Earnings Report?
A month has gone by since the last earnings report for MKS (MKSI - Free Report) . Shares have lost about 14.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MKS 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 latest earnings report in order to get a better handle on the important catalysts.
MKSI Q2 Earnings Beat Estimates, Revenues Increase Year Over Year
MKS Inc. reported second-quarter 2026 non-GAAP earnings of $3.30 per share, up 86.4% year over year. The figure beat the Zacks Consensus Estimate by 12.24%.
Revenues rose 28.3% year over year to $1.25 billion and surpassed the consensus mark by 3.06%. Growth was broad-based across all three end markets, led by Electronics & Packaging, while adjusted EBITDA margin expanded to 28.6%.
MKSI's Q2 Revenue Mix Strengthens
Product revenues, which accounted for 88.5% of total revenues, increased 30.2% year over year to $1.10 billion. The performance reflected stronger demand across the company’s semiconductor, electronics and packaging and specialty industrial businesses.
Services revenues totaled $144 million, representing 11.5% of revenues. The figure increased 15.2% from the year-ago quarter, supporting the company’s overall double-digit top-line expansion.
MKS' End Markets Post Broad Growth
Semiconductor revenues increased 28.2% year over year to $554 million and represented 44.4% of total revenues. Management highlighted accelerating AI-driven investment across semiconductor and advanced packaging applications, along with rapidly growing order volumes.
Electronics & Packaging revenues increased 44% to $381 million, contributing 30.5% of revenues. Specialty Industrial revenues rose 13.8% to $313 million and accounted for 25.1% of the quarterly total. The gains across each end market underscored the breadth of demand in the quarter.
MKSI's Operating Details
Gross margin expanded 100 basis points year over year to 47.6%. Non-GAAP operating income totaled $320 million, while the non-GAAP operating margin improved 480 basis points to 25.6%.
Non-GAAP operating expenses were $275 million compared with $251 million a year earlier.
Adjusted EBITDA climbed 49.2% year over year to $358 million. Adjusted EBITDA margin rose 390 basis points to 28.6%, reflecting stronger revenue and improved profitability.
GAAP income from operations increased to $251 million from $135 million in the prior-year quarter. The operating margin expanded 620 basis points to 20.1%, benefiting from the higher revenue base and improved gross margin.
MKSI's Cash Flow and Balance Sheet
As of June 30, 2026, MKS had cash and cash equivalents of $611 million compared with $569 million as of March 31, 2026.
As of June 30, 2026, long-term debt totaled $2.54 billion.
Net cash provided by operating activities was $243 million in the second quarter, up 47.3% year over year. Capital expenditures totaled $55 million, resulting in free cash flow of $188 million compared with $136 million in the prior-year quarter.
MKS' Q3 Outlook Signals Momentum
For the third quarter of 2026, MKS expects revenues of $1.35 billion, plus or minus $40 million. Gross margin is projected to be 47%, plus or minus 1 percentage point, while non-GAAP operating expenses are expected to be $280 million, plus or minus $5 million.
The company forecasts non-GAAP earnings of $3.58 per share, plus or minus 31 cents.
Adjusted EBITDA is expected to be $395 million, plus or minus $28 million. Management noted that the outlook reflects the current business environment, including U.S. import tariffs and retaliatory actions by other countries.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 8.69% due to these changes.
VGM Scores
At this time, MKS has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade 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. It comes with little surprise MKS has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.