MKS tops Q3 profit estimates, shares rise 3.6% after hours

MKS Inc. (MKSI) said on Nov. 4 that third-quarter revenue reached $1.41 billion, beating the $1.38 billion consensus estimate. Adjusted earnings per diluted share were $4.18, topping the $3.70 consensus estimate.

Shares rose 3.6% in after-hours trading as of 4:39 p.m. ET, from a regular-session close of $195.72.

MKS delivers technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications, according to its press release.

Here's how the company did:

• Revenue: $1.41 billion vs. $1.38 billion expected, up from $988 million a year earlier
• Adjusted EPS: $4.18 vs. $3.70 expected, up from $1.93 a year earlier
• GAAP net income per diluted share: $3.26, up from $1.10 a year earlier
• Gross margin: 47.7%, up from 46.6% a year earlier

Semiconductor revenue grew 54% year over year, and Electronics & Packaging revenue grew 43%, the company said.

“Our business momentum continued to build in the third quarter,” said John T.C. Lee, President and Chief Executive Officer.

2026 guidance

For the fourth quarter, the company expects revenue of $1.49 billion, plus or minus $40 million, and non-GAAP net earnings per diluted share of $5.00, plus or minus 38 cents.

The forecast does not include the pending sale of its Ophir Optics business, which MKS announced on Oct. 19 it would sell to TTM Technologies for $650 million.

“Q3 performance exceeded the high end of our guidance ranges for revenue and EPS, and we’re poised for a strong finish to 2026,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer.

Revenue has risen in each of the last three quarters, from $988.0 million in the third quarter of 2025 to $1.25 billion in the second quarter of 2026, according to its SEC filings.

Cash and capital returns

The board approved a $500 million share repurchase program, replacing a July 2011 program with about $28 million remaining. Repurchases may be made on the open market or in privately negotiated transactions.

It declared a quarterly cash dividend of 25 cents per share, payable Dec. 7 to shareholders of record on Nov. 25.

Balance sheet

At Sept. 30 the company had $676 million in cash and cash equivalents. Its $1.4 billion of convertible senior notes were classified as short-term debt because holders may convert them at any time during the fourth quarter.

In November the company made a voluntary $100 million principal prepayment on its USD term loan B.