MKS (MKSI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.25B, exceeding guidance, with double-digit year-over-year growth across all end markets, driven by strong demand in semiconductor, electronics, and specialty industrial markets.

• Gross margin was 47.6%, at the high end of guidance, supported by higher volumes and discrete items.

• Adjusted EBITDA was $358M, and non-GAAP net earnings per diluted share were $3.30, both above guidance.

• Strong order momentum and business growth were fueled by AI-driven investments in semiconductor and advanced packaging, with new design wins and robust demand across segments.

• Strategic investments in capacity and customer engagement are supporting current and future demand, with visibility extending through 2027.

Financial highlights

• Q2 2026 revenue was $1.25B, up 16% sequentially and 28% year-over-year.

• Semiconductor revenue reached $554M, up 19% sequentially and 28% year-over-year; Electronics & Packaging revenue was $381M, up 19% sequentially and 44% year-over-year; Specialty Industrial revenue was $313M, up 8% sequentially and 14% year-over-year.

• Gross margin was 47.6%; operating income was $320M (25.6% margin); adjusted EBITDA was $358M (28.6% margin); net earnings were $232M, or $3.30 per diluted share, up 86% year-over-year.

• Free cash flow was $188M (15% of revenue); liquidity exceeded $1.6B, including $611M in cash and $1B undrawn credit.

• Net leverage ratio reduced to 3.0x, with significant debt prepayments and improved financial health.

Outlook and guidance

• Q3 2026 revenue expected at $1.35B ± $40M, with continued strong sequential and year-over-year growth.

• Semiconductor revenue guidance: $630M ± $15M; Electronics & Packaging: $385M ± $15M; Specialty Industrial: $335M ± $10M.

• Q3 gross margin expected at 47% ± 100 bps; operating income of $355M (26.3% margin); adjusted EBITDA of $395M ± $28M.

• Q3 EPS guidance: $3.58 ± $0.31; tax rate expected at ~20% for Q3 and at the lower end of 18%-20% for the year.

• Guidance reflects ongoing impacts from U.S. tariffs and global trade actions.