MKSI Nasdaq Russell 1000 Earnings call
MKS Instruments (MKSI) · Q2 2026 results and valuation
Share price: $226.00 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net income up 108.3% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+108.3%
Net income vs Q1 2026
Outlook given
Net income 175.0M vs 84.0M
Revenue +15.8%
Against the same quarter last year (Q2 2025) it is +182.3%, so it is not just seasonal.
2 · How management spoke
Very upbeat
More upbeat than 91% of company calls
Answers to analysts: typical, but clearly less so than the script.
Similar to last call.
3 · What stood out
Guidance
The semi outlook for Q3 implies year-over-year growth will accelerate to over 50% due to strength across the entire portfolio of solutions.
Valuation
Is MKS Instruments undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.5% growth a year (3-year revenue growth), the model's fair value is $20.65 a share — the stock trades 994% above it. Today's price assumes 18.0% growth a year.
Current price
$226.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.0% for 10 yrs
Fair value / share
$20.65
Buy below
$15.49
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Revenue +30% · from the Q2 2026 report: “MKSI expects Q3 Electronics and Packaging revenue to increase over 30% year-over-year because AI-related investment will partially offset flex…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
The company is doubling capacity at the Guangzhou factory to increase future market share, though the new equipment results in lower gross margins.
Source quote
“We've talked in the past about what happens if the current Guangzhou factory is full, and that was to use... ...prepared remarks, we talked about the Guangzhou factory, doubling capacity there. To the earlier question, that is great for market share of chemistry in the future, and the equipment does have lower gross margin.”
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Guidance
MKSI expects Q3 Electronics and Packaging revenue to increase over 30% year-over-year because AI-related investment will partially offset flex equipment-related seasonality.
Source quote
“In Q3, we expect Electronics and Packaging revenue to be up over 30% year-over-year with AI-related investment partially offset by flex equipment-related seasonality.”
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Guidance
The company expects investments in CapEx and working capital to increase through the remainder of the year to prioritize organic growth.
Source quote
“We expect investments in CapEx and working capital to increase through the remainder of the year as we continue to prioritize our organic growth.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 90% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“We also continue to achieve design wins, including in advanced logic, where we are the process tool of record for dissolved gas applications and in RF power, where we have...”
“We expect revenue of $1.35 billion, plus or minus $40 million, which represents continued strong sequential improvement and further acceleration in year-over-year growth.”
“We remain focused on driving profitable growth with disciplined execution and continue to make the investments needed to capitalize on the growth opportunities that we see ahead.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.25B | 1.08B | +15.8% | 973.0M | +28.3% |
| Gross profit | 595.0M | 507.0M | +17.4% | 453.0M | +31.3% |
| Operating income | 251.0M | 149.0M | +68.5% | 135.0M | +85.9% |
| Net income | 175.0M | 84.0M | +108.3% | 62.0M | +182.3% |
| EPS | 2.41 | 1.18 | +104.2% | 0.92 | +162.0% |
| P/E today 44.7 | 70.8 | 48.1 | +22.7 | 25.2 | +45.6 |
Topics
Most discussed now
- Quarter revenue and key profitability metrics came in at the high end or above MKS Instruments' guidance ranges.
- MKS Instruments is not only excelling in the current environment, but also generating new design wins that position us to capitalize on...
- Its performance reflects the benefits of investments MKS Instruments has made and continue to make in broadening its capabilities and…
- Its Q3 guidance is supported by strong order activity that MKS Instruments expects will drive continued robust year-over-year growth.
- MKS Instruments remains focused on driving profitable growth with disciplined execution and continue to make the investments needed to…
Faded since Q1 2026
- Fading MKS Instruments is in an excellent position to capitalize on chip makers' ambitious AI-driven CapEx plans, which are accelerating…
- Fading MKS Instruments' specialty industrial portfolio is expected to continue delivering steady performance over the long term with incremental…
- Fading MKS Instruments is well equipped from a capacity perspective to support the demand growth it is seeing today, and it is...
- Fading Similar to semi, AI is driving increased complexity and layer counts in advanced circuit board manufacturing.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K