MKS Q4 Earnings Beat Expectations but Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MKSI?
Source: seekingalpha
- Earnings Highlights: MKS reported adjusted EPS of $2.47 for Q4, slightly exceeding the consensus estimate of $2.46, yet shares fell 6% in after-hours trading, indicating a negative market reaction despite the earnings beat.
- Revenue Performance: The quarter's revenue totaled $1.03 billion, surpassing the $1.02 billion consensus, reflecting strong sales performance in key markets, although the stock decline may suggest investor concerns about future outlook.
- Future Guidance: MKS expects adjusted EPS for Q1 2026 to range from $1.72 to $2.28, with a midpoint of $2, exceeding the $1.89 consensus, demonstrating the company's confidence in future growth prospects.
- Market Drivers: The CEO highlighted that MKS's broad technology portfolio aimed at next-generation semiconductor manufacturing and advanced packaging drove double-digit growth in two key end markets in 2025, positioning the company favorably in a secular growth environment driven by AI transformation.
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Analyst Views on MKSI
Wall Street analysts forecast MKSI stock price to fall
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 250.360
Low
170.00
Averages
190.70
High
215.00
Current: 250.360
Low
170.00
Averages
190.70
High
215.00
About MKSI
MKS INC. is headquartered in ANDOVER, MASSACHUSETTS, USA and is a manufacturer of instruments and related products for measuring, displaying, and controlling industrial process variables. The company was founded in 1961. MKS INC. is its ultimate parent.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MKS Reports Better-Than-Expected Q4 Earnings
- Strong Performance: MKS reported Q4 earnings of $2.47 per share after the bell on Tuesday, surpassing analyst expectations of $2.45, indicating significant returns from investments in advanced electronics.
- Sales Growth: The company achieved quarterly sales of $1.033 billion, exceeding the consensus estimate of $1.022 billion, reflecting robust demand in semiconductor manufacturing and advanced packaging markets.
- Outlook: MKS projects Q1 adjusted EPS between $1.72 and $2.28, below the market estimate of $1.88, with sales expected between $1.000 billion and $1.800 billion, slightly under the $1.004 billion forecasted by analysts.
- Analyst Rating Upgrades: Analysts from Needham and Deutsche Bank maintained a Buy rating on MKS, raising their price targets from $260 and $265 to $300 and $305 respectively, indicating strong market confidence in the company's future growth.
See More
MKS Inc. Reports Strong Q4 2025 Earnings Growth and Outlook
- Significant Sales Growth: MKS Inc. achieved a 10% sales growth in 2025, with revenue reaching $1.03 billion, exceeding expectations and demonstrating strong performance in a gradually improving demand environment, which boosts market confidence.
- Enhanced Profitability: The fourth quarter EPS was $2.47, a 20% year-over-year increase, while gross margin stood at 46.4%, indicating substantial progress in cost control and operational efficiency, further solidifying the company's market position.
- New Factory Launch: The new supercenter factory in Malaysia is expected to ramp up operations in the second half of the year, adding capacity and resilience to meet the growing semiconductor market demand, particularly in AI-driven electronics.
- Optimistic Future Outlook: Management anticipates Q1 2026 revenue of $1.04 billion, with electronics and packaging market revenue expected to grow 20% year-over-year, reflecting the company's confidence in future growth despite seasonal challenges.
See More
MKS Shares Drop 7% After Quarterly Results Miss Expectations
- Quarterly Performance: MKS (MKSI) shares fell about 7% in premarket trading following its quarterly results, primarily due to investors seeking a more significant earnings beat, despite the company exceeding guidance by an average of 3.4% over the past eight quarters.
- Analyst Ratings Maintained: Morgan Stanley kept its Overweight rating on MKS with a $258 price target, noting that while the Q1 guidance is modestly below expectations, analysts remain optimistic about the company's performance exceeding market expectations in the next 90 days.
- Market Reaction Analysis: Wells Fargo maintained its Equal Weight rating and $210 price target on MKS, highlighting that despite the Q1 guidance being in line or slightly above expectations, the stock is under pressure as investors anticipated a more substantial beat given peer results and semiconductor equipment outlooks.
- Industry Dynamics Impact: While MKS shares declined, chip equipment makers like ASML rose about 2%, with Lam Research, KLA, and Applied Materials each gaining around 1%, indicating varied market reactions within the semiconductor sector.
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Palo Alto's Q2 Earnings Beat Estimates but Guidance Lowered
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- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
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S&P 500 Futures Increase in Pre-Market Activity; Global-E Online and Garmin Take the Lead
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Global-E Online Ltd. Performance: Global-E Online Ltd. (GLBE) saw an increase of 18.3% in pre-market trading.
Garmin Ltd. Performance: Garmin Ltd. (GRMN) experienced a rise of 11.8% in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
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MKS Reports Q4 Net Income Growth and 2026 Guidance
- Net Income Growth: MKS Inc. reported a net income of $108 million for Q4, up 20% from $90 million last year, indicating strong market performance and boosting investor confidence.
- Earnings Per Share Increase: EPS rose from $1.33 to $1.58, surpassing analysts' expectations of $1.87, reflecting ongoing improvements in profitability that may attract more investor interest.
- Revenue and EBITDA Growth: The company's Q4 revenue increased to $1.03 billion, a 39% rise from $935 million last year, while adjusted EBITDA rose to $249 million, demonstrating enhanced operational efficiency and strong market demand.
- Q1 2026 Outlook: MKS expects Q1 2026 revenue of $1.04 billion with a projected gross margin of 46%, indicating confidence in future growth and providing clear financial guidance for investors.
See More
MKS Reports Better-Than-Expected Q4 Earnings
- Strong Performance: MKS reported Q4 earnings of $2.47 per share after the bell on Tuesday, surpassing analyst expectations of $2.45, indicating significant returns from investments in advanced electronics.
- Sales Growth: The company achieved quarterly sales of $1.033 billion, exceeding the consensus estimate of $1.022 billion, reflecting robust demand in semiconductor manufacturing and advanced packaging markets.
- Outlook: MKS projects Q1 adjusted EPS between $1.72 and $2.28, below the market estimate of $1.88, with sales expected between $1.000 billion and $1.800 billion, slightly under the $1.004 billion forecasted by analysts.
- Analyst Rating Upgrades: Analysts from Needham and Deutsche Bank maintained a Buy rating on MKS, raising their price targets from $260 and $265 to $300 and $305 respectively, indicating strong market confidence in the company's future growth.
See More
MKS Inc. Reports Strong Q4 2025 Earnings Growth and Outlook
- Significant Sales Growth: MKS Inc. achieved a 10% sales growth in 2025, with revenue reaching $1.03 billion, exceeding expectations and demonstrating strong performance in a gradually improving demand environment, which boosts market confidence.
- Enhanced Profitability: The fourth quarter EPS was $2.47, a 20% year-over-year increase, while gross margin stood at 46.4%, indicating substantial progress in cost control and operational efficiency, further solidifying the company's market position.
- New Factory Launch: The new supercenter factory in Malaysia is expected to ramp up operations in the second half of the year, adding capacity and resilience to meet the growing semiconductor market demand, particularly in AI-driven electronics.
- Optimistic Future Outlook: Management anticipates Q1 2026 revenue of $1.04 billion, with electronics and packaging market revenue expected to grow 20% year-over-year, reflecting the company's confidence in future growth despite seasonal challenges.
See More
MKS Shares Drop 7% After Quarterly Results Miss Expectations
- Quarterly Performance: MKS (MKSI) shares fell about 7% in premarket trading following its quarterly results, primarily due to investors seeking a more significant earnings beat, despite the company exceeding guidance by an average of 3.4% over the past eight quarters.
- Analyst Ratings Maintained: Morgan Stanley kept its Overweight rating on MKS with a $258 price target, noting that while the Q1 guidance is modestly below expectations, analysts remain optimistic about the company's performance exceeding market expectations in the next 90 days.
- Market Reaction Analysis: Wells Fargo maintained its Equal Weight rating and $210 price target on MKS, highlighting that despite the Q1 guidance being in line or slightly above expectations, the stock is under pressure as investors anticipated a more substantial beat given peer results and semiconductor equipment outlooks.
- Industry Dynamics Impact: While MKS shares declined, chip equipment makers like ASML rose about 2%, with Lam Research, KLA, and Applied Materials each gaining around 1%, indicating varied market reactions within the semiconductor sector.
See More
Palo Alto's Q2 Earnings Beat Estimates but Guidance Lowered
- Strong Earnings Report: Palo Alto Networks reported fiscal Q2 revenue of $2.59 billion, surpassing analyst expectations of $2.58 billion, indicating robust performance in the cybersecurity sector despite a challenging market environment.
- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
- Stock Price Volatility: In pre-market trading, Palo Alto's shares fell 7.5% to $151.20, reflecting the market's negative reaction to the lowered guidance, potentially leading to subdued investor sentiment in the short term.
See More
S&P 500 Futures Increase in Pre-Market Activity; Global-E Online and Garmin Take the Lead
Market Opening: U.S. stock markets are set to open in two hours.
Global-E Online Ltd. Performance: Global-E Online Ltd. (GLBE) saw an increase of 18.3% in pre-market trading.
Garmin Ltd. Performance: Garmin Ltd. (GRMN) experienced a rise of 11.8% in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
MKS Reports Q4 Net Income Growth and 2026 Guidance
- Net Income Growth: MKS Inc. reported a net income of $108 million for Q4, up 20% from $90 million last year, indicating strong market performance and boosting investor confidence.
- Earnings Per Share Increase: EPS rose from $1.33 to $1.58, surpassing analysts' expectations of $1.87, reflecting ongoing improvements in profitability that may attract more investor interest.
- Revenue and EBITDA Growth: The company's Q4 revenue increased to $1.03 billion, a 39% rise from $935 million last year, while adjusted EBITDA rose to $249 million, demonstrating enhanced operational efficiency and strong market demand.
- Q1 2026 Outlook: MKS expects Q1 2026 revenue of $1.04 billion with a projected gross margin of 46%, indicating confidence in future growth and providing clear financial guidance for investors.
See More
