Entegris (ENTG) AI Stock Analysis

Company Guidance

Entegris expects Q4 sales to range between $1.025 billion and $1.055 billion, with the midpoint representing an increase of approximately 26% year-over-year; gross margin is expected to be between 49.2% and 49.7% both on a GAAP and non-GAAP basis, with approximately 50 basis points of improvement sequentially and approximately 550 basis points of improvement year-over-year at the midpoint; GAAP operating expenses are expected to be approximately $272 million and non-GAAP operating expenses approximately $227 million, adjusted EBITDA margin approximately 31%, net interest expense approximately $40 million, a non-GAAP tax rate of approximately 15%, depreciation approximately $34 million, GAAP EPS between $1.09 and $1.17 per share and non-GAAP EPS between $1.32 and $1.40 per share, based on approximately 154 million shares. CapEx is expected to be approximately $200 million for 2026 or about 1/3 lower than last year, wafer starts growth is expected to be approximately 8% in 2026, and Q1 revenue is expected to decline by a mid-single-digit percentage compared to Q4 but increase by more than 20% year-over-year, with double-digit growth for both MS and APS; for 2027, industry forecasts call for MSI growth to broadly be consistent with what we saw this year, while all indications point to another strong double-digit growth year for both WFE as well as for fab construction.