MKS (MKSI) AI Stock Analysis

Company Guidance

For Q4 2026, MKS expects revenue of $1.49 billion, plus or minus $40 million, representing a 44% growth over the prior year, including semiconductor revenue of $700 million, plus or minus $15 million, electronics and packaging revenue of $430 million, plus or minus $15 million, and specialty industrial revenue of $360 million, plus or minus $10 million; semiconductor revenue points to accelerating year-over-year growth, electronics and packaging revenue is expected to increase over 40% year-over-year, and specialty industrial revenue is expected to remain at this level. The company estimates gross margin of 47.5%, plus or minus 100 basis points, operating expenses of $288 million, plus or minus $5 million, operating income of $420 million, plus or minus $29 million, operating margin of over 28%, adjusted EBITDA of $461 million, plus or minus $29 million, a fourth-quarter tax rate of approximately 19%, full-year tax rate of just over 16%, and fourth-quarter net earnings per diluted share of $5.00, plus or minus $0.38. Full-year capital spending is expected to remain within the targeted 3% to 5% range; chemistry equipment sales are expected to be more than $300 million, AI-related chemistry revenue is tracking towards the high end of the 15% to 20% range for 2026, approximately 25% of total E&P revenue is expected to represent AI exposure for the full year, and E&P is on track to grow nearly 40% in 2026.