Ultra Clean Posts Record Sales and Gives Fourth-Quarter Outlook

The Tip Desk · November 8, 2026 · 2 min read

The semiconductor subsystems supplier booked $759.0 million of third-quarter revenue and now expects $800 million to $860 million in the fourth quarter.

Ultra Clean Holdings, Inc. (UCTT), a supplier of subsystems, components and ultra-high-purity cleaning services for the semiconductor industry, reported record third-quarter revenue of $759.0 million, up 18% from $644.9 million in the second quarter and 49% from $510.0 million a year earlier.

The sequential increase followed a 21% rise in the prior quarter, from $533.7 million to $644.9 million. Chief executive James Xiao said the company responded with speed to scale production and meet accelerating customer demand, and that it is positioning itself to capture more value from AI-driven industry expansion through co-innovation and more advanced solutions.

Products, the larger of the two reportable divisions, contributed $681.9 million, up from $572.7 million in the second quarter. Services added $77.1 million, compared with $72.2 million. Products gross margin was 15.6% on a GAAP basis and 15.9% on a non-GAAP basis. Services gross margin was 28.8% GAAP and 30.1% non-GAAP.

GAAP gross margin expanded to 16.9% from 16.1% in the second quarter. Non-GAAP gross margin rose to 17.3% from 16.7%. GAAP operating margin widened to 7.1% from 4.6%, and non-GAAP operating margin rose to 9.0% from 7.0%.

Net income attributable to Ultra Clean was $39.1 million, or $0.85 a share, versus $8.7 million, or $0.19 a share, in the prior quarter. Non-GAAP net income was $53.2 million, or $1.15 a share, compared with $32.3 million, or $0.70 a share. A year earlier, the company posted a GAAP net loss attributable to UCT of $10.9 million, or $0.24 a share.

GAAP operating expenses were $74.7 million, including $50.0 million of general and administrative costs, $15.9 million of sales and marketing and $8.8 million of research and development. Non-GAAP adjustments in the quarter included $6.8 million of intangible amortization, $6.9 million of stock-based compensation, $0.6 million of restructuring charges and $0.6 million of legal-related costs tied to certain legal proceedings and a cybersecurity incident.

Inventories stood at $723.3 million at September 25, 2026, up from $390.9 million at year-end 2025. Cash and cash equivalents were $270.9 million. Long-term debt was $635.1 million.

The company now expects fourth-quarter 2026 revenue of $800 million to $860 million. It expects GAAP diluted net income of $1.02 to $1.26 a share and non-GAAP diluted net income of $1.11 to $1.35 a share.