MKS (MKT) Q2 2026 Earnings Report

The call conveyed strong and broad-based top-line growth (total revenue +28% YoY) with notable acceleration in Semiconductors (>50% YoY guidance for Q3) and Electronics & Packaging (+44% YoY in Q2), improved profitability (operating margin +480 bps YoY) and solid cash generation and liquidity. Management acknowledged mix- and ramp-related margin headwinds and the need for elevated working capital and CapEx to support capacity expansion, but characterized these as strategic, temporary investments to capture long-term demand. Given the scale and visibility of demand, ongoing design wins, capacity expansions, and improving leverage, the positives materially outweigh the near-term margin and investment challenges.

MKS guided Q3 revenue of $1.35 billion ± $40 million, with semiconductor revenue of $630 million ± $15 million (implying >50% YoY growth), Electronics & Packaging $385 million ± $15 million (expected >30% YoY) and Specialty Industrial $335 million ± $10 million; they estimate Q3 gross margin of 47% ± 100 bps, operating expenses of $280 million ± $5 million, operating income of $355 million (26.3% operating margin), adjusted EBITDA of $395 million ± $28 million, and diluted EPS of $3.58 ± $0.31. Additional guidance items: Q3 tax rate ~20% (full‑year tax at the low end of 18–20%), full‑year CapEx expected at 4–5% of revenue, palladium ~ $1,300 expected to be flat in Q3, and ongoing deleveraging priorities alongside ~ $1.6 billion liquidity and ~3x leverage on trailing‑12‑month adjusted EBITDA of $1.1 billion.