Ultra Clean (UCTT) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $759.0M, up 17.7% QoQ and 48.8% YoY; non-GAAP diluted EPS was $1.15, exceeding guidance amid accelerating demand and strong execution.

• AI-driven semiconductor investment supports expansion plans, while UCT 3.0 focuses on ramp readiness, co-innovation, operational agility and digital transformation.

Financial highlights

• Q3 revenue was $759.0M, including $681.9M from Products and $77.1M from Services; non-GAAP gross margin was 17.3% and operating margin was 9.0%.

• GAAP net income attributable to common stockholders was $39.1M, or diluted EPS of $0.85; non-GAAP net income was $53.2M, or diluted EPS of $1.15.

• Operating cash flow was $(42.3)M; quarter-end cash was $270.9M. Inventory increased $93.4M QoQ to $723.3M amid demand acceleration and working-capital needs.

• 9M 2026 revenue rose 25.2% to $1,937.6M; net income attributable to common stockholders was $29.9M versus a $177.9M loss in 9M 2025.

Outlook and guidance

• Q4 revenue guidance is $800M–$860M; GAAP diluted EPS guidance is $1.02–$1.26 and non-GAAP diluted EPS guidance is $1.11–$1.35.

• 2027 WFE spending is expected to exceed $200B; management cited a $250B 2028 WFE estimate as consistent with analyst expectations.

• Capacity is expected to reach ~$4B in Q1, with 15%–20% burst capacity; further optimization can support growth through 2027, with $80M–$100M of incremental investment anticipated through 2027–2028.

• Services revenue is expected to rise incrementally as U.S. fabs ramp, with a larger contribution as wafer starts increase in 2027–2028.