MKS (MKSI) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $1.413B; GAAP net income was $236M, diluted EPS $3.26, adjusted EBITDA $434M and non-GAAP diluted EPS $4.18; key results exceeded the high end of guidance.

• Revenue across all three end markets met or exceeded guidance; robust orders and design wins support continued growth.

• AI-related investment supported demand across semiconductor manufacturing, electronics and packaging, and data centers.

Financial highlights

• Q3 revenue was $1.413B, up 42% YoY from $988M; non-GAAP net earnings were $292M and diluted EPS $4.18, versus $130M and $1.93 in Q3 2025.

• GAAP operating income was $326M, net income $236M and diluted EPS $3.26, versus $74M and $1.10 net income and EPS in Q3 2025.

• Operating cash flow was $292M, capex $49M and free cash flow $243M, equal to 17% of revenue; Q3 net interest expense was $33M versus $45M a year earlier.

• Nine-month revenue was $3.739B, operating income $726M and net income $495M, versus $2.898B, $385M and $188M, respectively, in 2025.

Outlook and guidance

• Q4 revenue guidance is $1.490B ±$40M; non-GAAP diluted EPS is $5.00 ±$0.38 and adjusted EBITDA $461M ±$29M.

• Q4 non-GAAP gross margin is guided to 47.5% ±100 bps, operating expenses to $288M ±$5M and operating income to $420M ±$29M; operating margin is expected above 28%.

• Q4 segment revenue guidance: Semiconductor $700M ±$15M; Electronics & Packaging $430M ±$15M; Specialty Industrial $360M ±$10M.

• Q4 guidance excludes the pending Ophir Optics sale and reflects the current environment, including U.S. tariffs and retaliatory actions; FY26 tax rate is expected just over 16%.