MKS Extends Double-Digit Growth Across All End Markets

The Tip Desk · August 6, 2026 · 3 min read

Second-quarter revenue reached $1.25 billion, above the high end of guidance, with GAAP net income of $175 million, or $2.41 a share.

MKS Inc. (MKSI), a global provider of enabling technologies for advanced electronics, reported second-quarter 2026 revenue of $1,248 million, above the high end of its guidance range. GAAP net income was $175 million, or $2.41 a share, and adjusted EBITDA was $358 million, or a 28.6% margin, each also above the high end of the company’s outlook.

The electronics-technology supplier said year-over-year growth accelerated in the quarter after first-quarter revenue of $1,078 million had already landed at the high end of guidance. Chief Executive Officer John T.C. Lee said MKS delivered accelerated double-digit year-over-year revenue growth across each of its end markets and that momentum was continuing to build, including rapidly growing order volumes, as AI-driven investment intensified in semiconductor and advanced packaging.

Semiconductor, the largest reportable segment, generated $554 million. Electronics & Packaging contributed $381 million, and Specialty Industrial contributed $313 million. Products accounted for $1,104 million of the quarter’s revenue and services for $144 million.

Gross margin expanded to 47.6%. GAAP operating margin widened to 20.1% from 13.8% in the first quarter. Non-GAAP net earnings were $232 million, or $3.30 a share. Free cash flow was $188 million.

Chief Financial Officer Ram Mayampurath said second-quarter revenue and key profitability metrics came in at or above the high end of guided ranges, underscoring execution and a favorable position in a robust demand environment. The company said it was demonstrating the ability to drive profitable growth and healthy free cash flow as it further strengthens its balance sheet and invests for the future.

At June 30, 2026, cash and cash equivalents were $611 million. Secured term loan principal outstanding was $1.5 billion, convertible senior notes were $1.4 billion, and senior notes were €1.0 billion, with up to $1.0 billion of additional borrowing capacity under a revolving credit facility, subject to leverage-ratio requirements. The trading price of the common stock during the second quarter satisfied the stock-price conversion condition under the indenture governing the convertible senior notes. The notes became convertible, in whole or in part, at the option of noteholders at any time during the third quarter of 2026 and were classified as short-term debt, net of issuance costs, at June 30. In August 2026, the company made a voluntary principal prepayment of $100 million on its USD term loan B.

For the third quarter of 2026, MKS guided to revenue of $1,350 million, plus or minus $40 million. Gross margin is expected at 47.0%, plus or minus 1.0%. GAAP net income is guided at $201 million, plus or minus $23 million, or $2.73 a share, plus or minus $0.31. Non-GAAP net earnings are expected at $257 million, plus or minus $22 million, or $3.58 a share, plus or minus $0.31. Adjusted EBITDA is guided at $395 million, plus or minus $28 million. GAAP operating expenses are expected at $346 million, plus or minus $5 million, and non-GAAP operating expenses at $280 million, plus or minus $5 million.

The third-quarter outlook is based on the current business environment, including the impact of U.S. import tariffs and retaliatory actions taken by other countries up through but not including the date of the release. The company will continue to monitor and adapt to changes in the business environment as needed. Lee said that with the industry’s broadest technology capabilities, deep relationships in the electronics ecosystem, and enhanced capacity to deliver to customer demand, the company is confident in MKS’ near- and long-term growth prospects.