MKS Earnings Miss Estimates in Q4, Revenues Increase Y/Y

MKS Inc. MKSI reported fourth-quarter 2025 adjusted earnings of $2.47 per share, which missed the Zacks Consensus Estimate by 1.59%. The figure increased 14.9% year over year.

Revenues of $1.03 billion beat the consensus mark by 1.2% and increased 10.5% year over year.

Following fourth-quarter 2025 results on Tuesday, MKSI shares are down 8.67% in the early pre-market trading. MKS shares have returned 146.1% in the trailing 12 months, outperforming the broader Zacks Computer and Technology sector’s 18.1% return.

MKSI’s Q4 Top-Line Details

Product revenues (87.8% of total revenues) totaled $907 million, up 10.1% year over year. Services revenues (12.2% of total revenues) increased 13.5% year over year to $126 million. 

MKS Inc. Price, Consensus and EPS Surprise

 

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

Revenues from the Semiconductor market (42.1% of total revenues) increased 8.7% year over year to $435 million. Electronics & Packaging revenues (29.3% of total revenues) amounted to $303 million, up 19.3% year over year. Specialty Industrial revenues (28.6% of total revenues) rose 5% year over year to $295 million.

MKSI’s Q4 Operating Details

In the fourth quarter of 2025, the adjusted gross margin contracted 70 basis points (bps) on a year-over-year basis to 46.5%.

Adjusted EBITDA increased 5.1% year over year to $249 million. Adjusted EBITDA margin contracted 120 bps year over year to 24.1%.

Total operating expenses increased 8.7% year over year to $263 million in the reported quarter.

MKS reported a non-GAAP operating income of $217 million, up 9% year over year. The adjusted operating margin contracted 30 bps year over year to 21%.

MKSI’s Balance Sheet

As of Dec. 31, 2025, MKS Instruments had cash and cash equivalents of $675 million compared with $697 million as of Sept. 30. As of Dec. 31, 2025, long-term debt totaled $4.15 billion.

Cash flow from operations was $142 million in the fourth quarter of 2025 compared with $197 million in the previous quarter.

The free cash flow was $91 million compared with $147 million in the fourth quarter of 2025.

MKSI’s Q1 Guidance

MKSI expects first-quarter 2026 revenues of $1.04 billion (+/- $40 million).

MKS anticipates a gross margin of 46% (+/- 1%). The company expects an adjusted EBITDA of $251 million (+/- 24 million). 

On a non-GAAP basis, MKSI expects earnings of $2.00 (+/- 28 cents) per share.

Zacks Rank & Other Stocks to Consider

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

Micron Technology MU, MongoDB MDB and Credo Technology Group CRDO are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Micron Technology shares have skyrockted 283.1% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

MongoDB shares have returned 20.1% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.  
 
Credo Technology Group shares have surged 73.9% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently flaunts a Zacks Rank #1.

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

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