Ultra Clean Holdings (UCE) Q3 2026 Earnings Report
DE:UCE Q3 2026 EPS Results
- Actual EPS
- EUR 1.03
- Consensus EPS
- EUR 0.84
- Beat/Miss
- Beat by +EUR 0.19
- One Year Ago EPS
- EUR 0.25
DE:UCE Q3 2026 Revenue Results
- Actual Revenue
- EUR 677.67M
- Expected Revenue
- EUR 649.60M
- Beat/Miss
- Beat by +EUR 28.08M
- YoY Revenue Growth
- +48.82%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
Ultra Clean Holdings's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. UCT reported record revenue, significant sequential and year-over-year growth, improved margins, strong execution during supply-chain pressure, favorable AI and semiconductor demand trends, multiple new program wins, expanded capacity, and positive fourth-quarter guidance. The main challenges were negative operating cash flow, elevated inventory and working-capital needs, continuing MFC and broader supply-chain constraints, and the need for substantial additional capacity investment.
UCT expects 2027 wafer fab equipment spending to be above $200 billion; for the fourth quarter, it expects revenue of $800 million to $860 million, up 9.4% sequentially at the midpoint, EPS of $1.11 to $1.35 and approximately 48.9 million diluted shares. UCT expects to be at approximately $4 billion of capacity in Q1, with about 15% to 20% burst capacity, and sees a path to additional capacity and increased utilization through further optimization of its current footprint through 2027; growing to $5-plus billion will require additional capacity, supported by roughly $80 million to $100 million incrementally through 2027 and 2028. Over the next few quarters, it expects to double weldment capacity in Cebu, Philippines, bring additional clean room capacity online in Singapore and the Czech Republic, and double its vertical integrated manufacturing capacity in Malaysia and Thailand next year. It expects Services revenue to increase incrementally over time, with a larger contribution as wafer starts increase throughout 2027 and 2028, sees a path to its target of 20% gross margin at $4 billion of revenue, and said MFC constraints may continue for a quarter or 2.
- Record Quarterly Revenue and Earnings OutperformanceThird-quarter revenue reached a record $759 million, up 17.7% sequentially and 48.8% year-over-year, and results were above the high end of guidance. Gross margin was 17.3%, up 60 basis points from Q2; operating margin was 9.0%, up from 7.0%; and EPS was $1.15, up $0.45 from the prior quarter.
- Strength Across Products and ServicesProducts revenue was $681.9 million, up 19.1% sequentially, driven primarily by strength in etch and deposition supporting gate-all-around and high-bandwidth memory. Services revenue was $77.1 million, up 6.7% sequentially, reflecting strength across OEM and fab customers.
- Healthy Semiconductor and End-Market DemandManagement cited healthy demand across end markets and strong AI-related investment across the semiconductor ecosystem. Semiconductor products represented 86% of revenue, including 52% from foundry and logic and 34% from memory; services represented 10%, and non-semiconductor markets accounted for 4%.
- Positive WFE Market OutlookBased on customer visibility, UCT now expects 2027 wafer fab equipment spending to be above $200 billion. Management said 2027 demand appears more confirmed than a quarter ago, while 2028 is becoming more concrete; the analyst community is citing $250 billion or more for 2028, although customers have not provided that figure.
- Ramp Readiness Supported OutperformanceManagement said its ramp readiness strategy, including planning capacity one to two quarters ahead of demand and maintaining supply-chain visibility and safety stock, helped UCT accommodate excess orders and deliver on time. UCT did not miss a single required subsystem module or shipment during the quarter.
- Expansion of Clean Room and Manufacturing CapacityThe 26,000 square feet of clean room expansion in Malaysia came online earlier than anticipated and helped UCT outperform in the quarter. Over the next few quarters, UCT expects to double weldment capacity in Cebu, add clean room capacity in Singapore and the Czech Republic, and double vertically integrated manufacturing capacity in Malaysia and Thailand next year.
- Capacity Positioned for Further GrowthUCT accelerated expansion and now expects approximately $4 billion of capacity in Q1, with a path to additional capacity and utilization through footprint optimization through 2027. The company also has approximately 15% to 20% of burst capacity and expects to add capacity for $5 billion and beyond in phases based on customer demand.
- Vertical Integration to Address Component ConstraintsManagement said increasing in-house production of critical components will provide greater supply control, improve on-time delivery, and position UCT to capture additional share during the ramp.
- NPX Program Wins and Co-Innovation ProgressUCT secured 8 new NPX program wins across etch, ALD, PVD, and lithography applications, spanning gas delivery, thermal, and other critical subsystems. A similar number of programs are moving through development and qualification across etch, deposition, lithography, and metrology.
- New Product Development and Future Margin OpportunityThrough its Center of Excellence in Hillsboro, UCT said it successfully engaged in 8 NPI programs across different product lines. Management expects these products to be productized with customers' next-node introductions over the next 2 to 3 years and said build-to-spec engagement is expected to improve technology collaboration, share, and margin.
- Margin Improvement and Long-Term Gross Margin TargetProducts gross margin increased to 15.9% from 15.1% in Q2, while Services margin increased to 30.1% from 28.9%. The company said it continues to see a path to its target of 20% gross margin at $4 billion of revenue, supported by higher utilization, a greater mix of higher-value engineered products, vertical integration, and production in lower-cost regions.
- Operating Leverage and Segment Margin GainsOperating expense was $62.9 million, or 8.3% of revenue, compared with 9.7% of revenue in Q2. Products operating margin improved to 8.5% from 6.5%, and Services operating margin increased to 13.6% from 11.2%.
- Digital Transformation InitiativesUCT launched an integrated planning platform linking demand, supply, inventory, and capacity in real time. The platform automates information exchange across customers, UCT, and suppliers so changes in customer demand can move through the supply chain more quickly.
- Fourth-Quarter Growth GuidanceUCT expects fourth-quarter revenue of $800 million to $860 million, representing 9.4% sequential growth at the midpoint, and EPS of $1.11 to $1.35 on approximately 48.9 million diluted shares.
- Liquidity and Capital Allocation ActionsUCT ended the quarter with $270.9 million in cash, compared with $255.9 million in Q2. The company sold 432,000 shares through its ATM program in Q3 at an average price of $80.13, generating approximately $34 million in net proceeds, and sold an additional 2.2 million shares in the first week of Q4 at an average price of $78.45, generating $169.1 million in net cash proceeds. A portion of the proceeds was used to repay the outstanding revolving credit facility balance.
- New CFO Focused on Execution and Cash ConversionNew CFO Michael Keogh joined UCT in August and said his priorities include strengthening execution, disciplined capital allocation, driving cash conversion, and building financial processes and capabilities to support the company's scaling.
- Opportunities in Optical Inspection and MetrologyUCT said it is familiar with optical inspection and lithography systems through its existing relationships with major WFE customers and expects new subsystem and engineering opportunities in optical inspection and metrology.
DE:UCE Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 1.12- | 0.2 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 0.841.03 | 0.25 | 310.71% (+0.78) | |
| Aug 03, 2026 | 2026 (Q2) | 0.470.62 | 0.24 | 159.26% (+0.38) | |
| Apr 28, 2026 | 2026 (Q1) | 0.230.28 | 0.25 | 10.71% (+0.03) | |
| Feb 23, 2026 | 2025 (Q4) | 0.200.20 | 0.46 | -56.86% (-0.26) | |
| Oct 28, 2025 | 2025 (Q3) | 0.190.25 | 0.31 | -20.00% (-0.06) | |
| Jul 28, 2025 | 2025 (Q2) | 0.240.24 | 0.29 | -15.63% (-0.04) | |
| Apr 28, 2025 | 2025 (Q1) | 0.280.25 | 0.24 | 3.70% (+0.01) | |
| Feb 24, 2025 | 2024 (Q4) | 0.390.46 | 0.17 | 168.42% (+0.29) | |
| Oct 28, 2024 | 2024 (Q3) | 0.290.31 | 0.04 | 775.00% (+0.28) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.