$MKSI · MKS INC
MKS Inc. filed its Q3 FY2026 Form 10-Q. Revenue grew 43% YoY to $1.413B, gross margin was 47.7%, operating margin 23.1%, and net income tripled to $236M ($3.26 diluted EPS vs $1.10 a year ago). Nine-month revenue reached $3.739B with net income of $495M. Growth was driven by semiconductor capital equipment (deposition/etch), NAND memory upgrades at VSD, chemistry/equipment at MSD, and datacom/lithography at PSD.
- Q3 revenue $1.413B, up 43% YoY from $988M.
- Net income tripled to $236M from $74M a year ago.
- Diluted EPS $3.26 vs $1.10 in Q3 FY2025.
- Gross margin 47.7%, operating margin 23.1%.
- Nine-month operating cash flow $588M vs $503M a year ago.
Shares fell 7.59% to $180.16 despite strong results, suggesting the market had priced in even stronger semiconductor momentum or is reacting to other factors.
A 43% revenue surge and tripled net income show MKS is a direct beneficiary of the semiconductor equipment cycle, yet the stock sold off on the news.
MKS's 43% revenue growth reflects the broader semiconductor equipment upcycle, with deposition/etch and NAND memory demand driving results across its vacuum, photonics, and materials divisions.
Higher tariff and duty costs and unfavorable product mix pressured gross margin; short-term debt jumped to $1.4B from $51M at year-end 2025.