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 (28.6% margin), and non-GAAP net earnings per diluted share were $3.30, both above guidance.

• Strong order momentum and business growth fueled by AI-driven investments in semiconductor and advanced packaging.

• Strategic capacity expansions and foundational roles in advanced electronics position the company for long-term opportunities.

Financial highlights

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

• Net earnings were $232M ($3.30 per diluted share), up 86% year-over-year; GAAP net income was $175M ($2.41 per diluted share).

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

• Operating income was $320M (25.6% margin); adjusted EBITDA was $358M (28.6% margin).

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

Outlook and guidance

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

• Semiconductor revenue expected at $630M ± $15M; E&P at $385M ± $15M; specialty industrial at $335M ± $10M.

• Gross margin guidance is 47% ± 100 bps; operating income expected at $355M (26.3% margin); adjusted EBITDA at $395M ± $28M.

• Q3 EPS guidance is $3.58 ± $0.31; tax rate expected at ~20%.

• Guidance reflects ongoing impacts from U.S. tariffs, global trade actions, and continued focus on deleveraging.