MKSI Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise

MKS Inc. MKSI reported third-quarter 2025 adjusted earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 7.22%. The figure increased 12.2% year over year.

Revenues of $988 million beat the consensus mark by 2.7% and increased 10.3% year over year.

Following third-quarter 2025 results on Wednesday, MKSI shares closed at $155.25, up 10.96% on Thursday. MKS shares have returned 48.7% year to date, outperforming the broader Zacks Computer and Technology sector’s 25.1% return.

MKSI Q3 Top-Line Details

Products revenues (87% of total revenues) totaled $860 million, up 10.8% year over year. Services revenues (13% of total revenues) increased 6.7% year over year to $128 million. 

MKS Inc. Price, Consensus and EPS Surprise

MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote

Revenues from the Semiconductor market (42% of total revenues) increased 9.8% year over year to $415 million. Electronics & Packaging revenues (29.3% of total revenues) amounted to $289 million, up 25.1% year over year. Specialty Industrial revenues (28.7% of total revenues) declined 1% year over year to $284 million. 

Revenues from the Vacuum Solutions (39.1% of total revenues) increased 11.9% year over year to $386 million. Photonics Solutions revenues (25.2% of total revenues) totaled $249 million, down 0.8% year over year. Materials Solutions revenues (35.7% of total revenues) climbed 17.7% year over year to $353 million.

MKSI’s Q3 Operating Details

In the third quarter of 2025, the adjusted gross margin contracted 160 basis points (bps) on a year-over-year basis to 46.7%.

Adjusted EBITDA increased 3.4% year over year to $240 million. Adjusted EBITDA margin contracted 160 bps year over year to 24.3%.

Total operating expenses increased 8% year over year to $256 million in the reported quarter.

MKS reported a non-GAAP operating income of $205 million, up 5.1% year over year. The adjusted operating margin contracted 100 bps year over year to 20.7%.

MKSI’s Balance Sheet

As of Sept. 30, 2025, MKS Instruments had cash and cash equivalents of $697 million compared with $674 million as of June 30. As of Sept. 30, 2025, long-term debt totaled $4.25 billion.

Cash flow from operations was $197 million in the third quarter of 2025 compared with $165 million in the previous quarter.

Free cash flow was $147 million compared with $136 million in the second quarter of 2025.

MKSI’s Q4 Guidance

MKSI expects fourth-quarter 2025 revenues of $990 million (+/- $40 million).

MKS expects gross margin of 46% (+/- 1%). The company expects an adjusted EBITDA of $235 million (+/- 24 million). 

On a non-GAAP basis, MKSI expects earnings of $2.27 (+/- 34 cents) per share.

Zacks Rank & Other Stocks to Consider

Currently, MKSI carries a Zacks Rank #2 (Buy).

Amphenol APH, Digital Turbine APPS and ASML Holding ASML are top-ranked stocks in the broader sector. Each of the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long term earnings growth rate for Amphenol, Digital Turbine and ASML Holding is currently pegged at 26.83%, 42.42% and 20.87%, respectively. Shares of Amphenol, Digital Turbine and ASML Holding have appreciated 98.8%, 270.4% and 48.5%, respectively.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research