MKSI · MKS Inc.

MKS Inc. delivered strong Q1 2026 results with total revenue of $1,078 million, up from $1,033 million in Q4 2025 and $936 million in Q1 2025, hitting the high end of guidance. Growth was led by Semiconductor Technologies at $466 million (up 7% QoQ, 13% YoY) and Electronics & Packaging at $321 million (up 6% QoQ, 27% YoY), while Specialty Industrial was stable at $291 million. Gross margin held steady at 47.0%, reflecting solid pricing and mix amid operational discipline. GAAP operating margin of 13.8% was supported by controlled expenses, though impacted by $18 million in debt-related fees, $63 million amortization, and restructuring costs. Non-GAAP operating margin expanded to 21.8%, highlighting underlying profitability. CEO John T.C. Lee attributed performance to accelerating AI-related demand in semiconductor and advanced circuit board manufacturing, positioning MKS for growth in data centers and consumer electronics. CFO Ram Mayampurath emphasized gross margins and cash generation for innovation and balance sheet strength. Balance sheet shows $569 million cash after debt activities, with $1.4 billion convertible notes reclassified to short-term due to stock price appreciation, now convertible in Q2. Debt refinancing included €1.0 billion 4.25% senior notes due 2034, prepaying $1.3 billion USD term loan B, fully refinancing EUR term loan B, and upsizing revolver to $1.0 billion. Dividend raised to $0.25/share signals confidence. Q2 guidance projects revenue acceleration to $1,200 million ±$40 million, with Non-GAAP EPS $2.90 ±$0.30 and Adjusted EBITDA $328 million ±$26 million, factoring in tariff impacts.