MKS Inc. Reports Third Quarter 2026 Financial Results

Quarterly operating cash flow reached $292 million, while MKS made a further $100 million term-loan principal prepayment in November.

Rhea-AI Summary

MKS (NASDAQ: MKSI) reported third-quarter 2026 revenue of $1,413 million, exceeding the high end of its guidance range. Revenue rose from $988 million a year earlier. GAAP net income reached $236 million, or $3.26 per diluted share, versus $74 million, or $1.10 per diluted share. Gross margin increased to 47.7% from 46.6%, and GAAP operating margin rose to 23.1% from 14.0%.

Semiconductor revenue was $638 million; Electronics & Packaging generated $415 million, and Specialty Industrial contributed $360 million. Operating cash flow increased to $292 million from $197 million a year earlier. MKS expects fourth-quarter revenue of $1,490 million, plus or minus $40 million, and GAAP diluted earnings of $4.04, plus or minus $0.38. Guidance excludes the pending Ophir Optics sale. MKS prepaid $100 million of term-loan principal in November; its convertible notes remain convertible at holders’ option during the fourth quarter.

26 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 revenue reached $1,413 million, versus $988 million a year earlier, exceeding the high end of guidance.
• Moderate pointQ3 GAAP net income rose to $236 million from $74 million a year earlier.
• Moderate pointQ3 GAAP operating margin expanded to 23.1% from 14.0% a year earlier.
• Moderate pointQ3 non-GAAP operating margin increased to 27.8% from 20.8% a year earlier.
• Moderate pointQ3 adjusted EBITDA, an adjusted earnings measure, reached $434 million, exceeding the high end of guidance.
• Moderate pointQ3 operating cash flow increased to $292 million from $197 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 revenue of $1,490 million, plus or minus $40 million.

19 minor points

• Minor pointQ3 GAAP diluted earnings rose to $3.26 per share from $1.10 a year earlier.
• Minor pointSemiconductor Q3 revenue increased to $638 million from $415 million a year earlier.
• Minor pointElectronics & Packaging Q3 revenue increased to $415 million from $289 million a year earlier.
• Minor pointSpecialty Industrial Q3 revenue increased to $360 million from $284 million a year earlier.
• Minor pointQ3 gross margin expanded to 47.7% from 46.6% a year earlier.
• Minor pointQ3 non-GAAP net earnings rose to $292 million from $130 million a year earlier.
• Minor pointQ3 non-GAAP diluted earnings increased to $4.18 per share from $1.93 a year earlier.
• Minor pointNine-month revenue increased to $3,739 million from $2,898 million a year earlier.
• Minor pointNine-month GAAP net income increased to $495 million from $188 million a year earlier.
• Minor pointNine-month GAAP diluted earnings increased to $6.86 per share from $2.78 a year earlier.
• Minor pointNine-month operating cash flow increased to $588 million from $503 million a year earlier.
• Minor pointQ3 interest expense decreased to $38 million from $53 million a year earlier.
• Minor pointQ3 borrowing repayments totaled $163 million; November brought an additional $100 million voluntary term-loan principal prepayment.
• Minor pointQ3 cash dividends per common share increased to $0.25 from $0.22 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 GAAP net income of $294 million, plus or minus $28 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 GAAP diluted earnings of $4.04, plus or minus $0.38 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 non-GAAP net earnings of $352 million, plus or minus $27 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 non-GAAP diluted earnings of $5.00, plus or minus $0.38 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 adjusted EBITDA of $461 million, plus or minus $29 million.

Negative

• Moderate pointSeptember 30 debt included $1.3 billion secured term-loan principal, $1.4 billion convertible notes and €1.0 billion senior notes.
• Moderate pointConvertible senior notes are convertible at holders’ option during Q4 2026 and classified as short-term debt.
• Minor pointAdditional revolving borrowing capacity of up to $1.0 billion is subject to certain leverage-ratio requirements.
• Minor pointQ4 guidance excludes the pending Ophir Optics sale and reflects tariff actions only before the release date.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 gross margin of 47.5%, plus or minus 1.0%, versus 47.7% in Q3.

7 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 GAAP operating expenses of $355 million, plus or minus $5 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.MKS expects Q4 non-GAAP operating expenses of $288 million, plus or minus $5 million.
• Minor pointQ3 debt-extinguishment loss increased to $5 million from $2 million a year earlier.
• Minor pointQ3 restructuring and other charges increased to $5 million from $4 million a year earlier.
• Minor pointNine-month debt-related fees and expenses increased to $18 million from $2 million a year earlier.
• Minor pointNine-month capital spending increased to $128 million from $98 million a year earlier.
• Minor pointNine-month operating asset and liability changes used $192 million, versus providing $75 million a year earlier.

News Explained

At September 30, 2026, MKS reported $676 million in cash and cash equivalents, with $1.3 billion of secured term debt, $1.4 billion of convertible notes and €1.0 billion of senior notes outstanding; it also reported up to $1.0 billion of revolver capacity, subject to leverage-ratio requirements.

Argus 15 min delay 33 alerts

+9.26% vs previous close $213.00 last price 1.9x rel. volume Open Argus

Details

Market Reaction – MKSI

$190.53 – $215.87 Day Range

$14.40B Mkt Cap at Last Price

On Nov 4, the day this news came out, the latest delayed price for MKSI is 9.26% above the previous close. Our momentum scanner has recorded 33 alerts for this stock so far that day. The latest delayed price is $213.00. Relative volume is above average at 1.9x what this stock usually trades by this time of day.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Revenue: $1,413 million GAAP net income: $236 million GAAP diluted EPS: $3.26 +5 more

Revenue

$1,413 million

Q3 2026; above the high end of guidance

GAAP net income

$236 million

Q3 2026; above the high end of guidance

GAAP diluted EPS

$3.26

Q3 2026; above the high end of guidance

Adjusted EBITDA

$434 million

Q3 2026; above the high end of guidance

Non-GAAP diluted EPS

$4.18

Q3 2026; above the high end of guidance

Revenue guidance

$1,490 million ± $40 million

Q4 2026

GAAP diluted EPS guidance

$4.04 ± $0.38

Q4 2026

Non-GAAP diluted EPS guidance

$5.00 ± $0.38

Q4 2026

Previous Earnings Reports

4 past events · Latest: Aug 05

Same Type 4 events

1. Aug 05

   Quarterly earnings

   24h Move

   -7.0%

   Q2 revenue and key profitability measures were above guidance; the reported 24-hour price reaction was negative.

2. May 06

   Quarterly earnings

   24h Move

   +2.4%

   Q1 Adjusted EBITDA was above guidance; the reported 24-hour price reaction was positive.

3. Feb 17

   Quarterly earnings

   24h Move

   -4.8%

   MKS reported Q4 and full-year 2025 results; the reported 24-hour price reaction was negative.

4. Nov 05

   Quarterly earnings

   24h Move

   +11.0%

   Q3 2025 results were in the upper half of guidance; the reported 24-hour price reaction was positive.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, generally accepted accounting principles, convertible senior notes, indenture, +1 more

5 terms

non-gaap financial measures financial

"This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

generally accepted accounting principles financial

"reported results under U.S. generally accepted accounting principles"

Generally accepted accounting principles (GAAP) are a standardized set of rules and practices companies use to record and report their financial results, like a common recipe so dishes from different cooks can be fairly compared. Investors rely on GAAP because it makes company earnings, assets and liabilities consistent and transparent across businesses, helping them compare performance, spot risks, and make informed decisions about buying or selling stock.

convertible senior notes financial

"the indenture governing our convertible senior notes"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

indenture financial

"the indenture governing our convertible senior notes"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

revolving credit facility financial

"additional borrowing capacity under a revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Record revenue of $1,413 million, above the high end of guidance 
• Record GAAP net income of $236 million and record net income per diluted share of $3.26, each above the high end of guidance
• Record Adjusted EBITDA of $434 million and record Non-GAAP net earnings per diluted share of $4.18, each above the high end of guidance
  

ANDOVER, Mass., Nov. 04, 2026 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported its financial results for the third quarter of 2026.

“Our business momentum continued to build in the third quarter. Revenue in each of our end markets was at or above the high end of our guidance, led by 54% year-over-year growth in Semiconductor and 43% growth in Electronics & Packaging,” said John T.C. Lee, President and Chief Executive Officer. “From chips to substrates and advanced PCBs, the fundamental challenges of stacking, scaling, and new materials are becoming more integral in the AI era. MKS brings the broadest set of capabilities across both the semiconductor and advanced packaging markets to deliver foundational innovation, and that is driving robust orders and new design wins that set us up for continued strong performance.”

“Q3 performance exceeded the high end of our guidance ranges for revenue and EPS, and we’re poised for a strong finish to 2026,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “Our business model is delivering scale benefits that, combined with accelerating revenue, are driving gross and operating margin expansion, strong earnings growth and cash generation. With our exposure to attractive growth markets, mix of equipment solutions and consumables, and a healthy balance sheet, MKS is well positioned to generate significant, durable shareholder returns.”

Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
	Three Months Ended												Nine Months Ended
	Q3 2026				Q2 2026				Q3 2025				Q3 2026				Q3 2025
Net Revenues
Semiconductor	$638				$554				$415				$1,658				$1,261
Electronics & Packaging		415				381				289				1,118				809
Specialty Industrial		360				313				284				963				828
Total net revenues	$1,413				$1,248				$988				$3,739				$2,898
Gross Margin		47.7%				47.6%				46.6%				47.5%				46.9%
GAAP Financial Measures
Operating margin		23.1%				20.1%				14.0%				19.4%				13.3%
Net income	$236				$175				$74				$495				$188
Net income per diluted share	$3.26				$2.41				$1.10				$6.86				$2.78
Non-GAAP Financial Measures
Operating margin		27.8%				25.6%				20.8%				25.3%				20.6%
Net earnings	$292				$232				$130				$681				$365
Net earnings per diluted share	$4.18				$3.30				$1.93				$9.80				$5.41

Additional Financial Information

At September 30, 2026, the Company had $676 million in cash and cash equivalents, $1.3 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding, €1.0 billion of senior notes outstanding and up to $1.0 billion of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the third quarter of 2026, the trading price of our common stock continued to satisfy the stock price conversion condition under the indenture governing our convertible senior notes. As a result, the convertible senior notes are convertible, in whole or in part, at the option of the noteholders at any time during the fourth quarter of 2026, and were classified as short-term debt, net of issuances costs, at September 30, 2026.

In November 2026, the Company made a voluntary principal prepayment of $100 million on its USD term loan B.

Fourth Quarter 2026 Guidance

• Revenue of $1,490 million, plus or minus $40 million
• Gross margin of 47.5%, plus or minus 1.0%
• GAAP operating expenses of $355 million, plus or minus $5 million and Non-GAAP operating expenses of $288 million, plus or minus $5 million
• GAAP net income of $294 million, plus or minus $28 million and Non-GAAP net earnings of $352 million, plus or minus $27 million
• GAAP net income per diluted share of $4.04, plus or minus $0.38 and Non-GAAP net earnings per diluted share of $5.00, plus or minus $0.38
• Adjusted EBITDA of $461 million, plus or minus $29 million
  
  

The guidance for the fourth quarter does not include the impact of the Company’s pending sale of its Ophir^® Optics business and is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.

Conference Call Details

A conference call with management will be held on Thursday, November 5, 2026 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Inc.

MKS Inc. (NASDAQ: MKSI) enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; risks related to pursuing, completing, and/or failing to realize the benefits of acquisitions and other strategic transactions, including the pending sale of our Ophir Optics business; risks related to cybersecurity, data privacy and intellectual property; manufacturing and sourcing risks, including supply chain disruptions, component shortages and price increases, the use of limited, sole source and international suppliers, the relocation of manufacturing operations, and product defects; risks associated with doing business internationally, including geopolitical conflicts, trade compliance, trade protection measures, such as import tariffs by the United States and/or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations; conditions affecting the markets in which we operate, including intense competition, rapid technological and market changes, dependence on new product development, the ability to anticipate and meet customer demand, fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks associated with artificial intelligence (“AI”); financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission and any subsequent Quarterly Reports on Form 10-Q. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com 

MKS Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2026				2026				2025				2026				2025
Net revenues:
Products	$	1,264			$	1,104			$	860			$	3,322			$	2,528
Services		149				144				128				417				370
Total net revenues		1,413				1,248				988				3,739				2,898
Cost of revenues:
Products		668				582				466				1,764				1,367
Services		71				71				61				199				173
Total cost of revenues (exclusive of amortization shown separately below)		739				653				527				1,963				1,540
Gross profit		674				595				461				1,776				1,358
Research and development		80				76				76				237				222
Selling, general and administrative		201				200				180				591				539
Restructuring and other		5				6				4				14				26
Legal settlement		—				—				—				3				—
Fees and expenses related to debt activities		—				—				—				18				2
Amortization of intangible assets		62				62				63				187				184
Income from operations		326				251				138				726				385
Interest income		(2	)			(2	)			(3	)			(6	)			(11	)
Interest expense		38				38				53				121				162
Loss on extinguishment of debt		5				4				2				14				8
Other (income) expense, net		(2	)			(2	)			2				(4	)			11
Income before income taxes		287				213				84				601				215
Provision for income taxes		51				38				10				106				27
Net income	$	236			$	175			$	74			$	495			$	188
Net income per common share:
Basic	$	3.49			$	2.59			$	1.10			$	7.32			$	2.79
Diluted	$	3.26			$	2.41			$	1.10			$	6.86			$	2.78
Cash dividends per common share	$	0.25			$	0.25			$	0.22			$	0.75			$	0.66
Weighted average common shares outstanding:
Basic		67.7				67.6				67.3				67.6				67.3
Diluted		72.5				72.7				67.6				72.1				67.6

MKS Inc.
Unaudited Consolidated Balance Sheet
(In millions)
	September 30,			December 31,
	2026			2025
ASSETS
Cash and cash equivalents	$	676		$	675
Trade accounts receivable, net		902			651
Inventories		1,162			921
Other current assets		318			263
Total current assets		3,058			2,510
Property, plant and equipment, net		820			810
Right-of-use assets		259			270
Goodwill		2,600			2,574
Intangible assets, net		1,973			2,140
Other assets		522			492
Total assets	$	9,232		$	8,796
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt	$	1,400		$	51
Accounts payable		591			407
Other current liabilities		588			469
Total current liabilities		2,579			927
Long-term debt, net		2,377			4,150
Non-current deferred taxes		430			474
Non-current accrued compensation		146			149
Non-current lease liabilities		238			246
Other non-current liabilities		176			131
Total liabilities		5,946			6,077
Stockholders' equity:
Common stock		—			—
Additional paid-in capital		2,108			2,101
Retained earnings		1,155			711
Accumulated other comprehensive income (loss)		23			(93	)
Total stockholders' equity		3,286			2,719
Total liabilities and stockholders' equity	$	9,232		$	8,796

MKS Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2026				2026				2025				2026				2025
Cash flows from operating activities:
Net income	$	236			$	175			$	74			$	495			$	188
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		88				85				85				259				258
Unrealized (gain) loss on foreign currency and derivative instruments		(2	)			(2	)			(8	)			(4	)			(4	)
Amortization of debt issuance costs and original issue discounts		3				3				7				11				20
Loss on extinguishment of debt		5				4				2				14				8
Stock-based compensation		15				15				12				49				46
Provision for excess and obsolete inventory		4				5				10				21				37
Deferred income taxes		(20	)			(20	)			(44	)			(64	)			(125	)
Other		3				(4	)			1				(1	)			—
Changes in operating assets and liabilities		(40	)			(18	)			58				(192	)			75
Net cash provided by operating activities		292				243				197				588				503
Cash flows from investing activities:
Purchases of investments		—				—				(1	)			(1	)			(1	)
Proceeds from sale of long-lived assets		—				—				—				—				3
Purchases of property, plant and equipment		(49	)			(55	)			(50	)			(128	)			(98	)
Net cash used in investing activities		(49	)			(55	)			(51	)			(129	)			(96	)
Cash flows from financing activities:
Repurchase of common stock		—				—				—				—				(45	)
Proceeds from borrowings		—				—				—				1,192				—
Payments of borrowings		(163	)			(104	)			(113	)			(1,541	)			(338	)
Payments of deferred financing fees		—				—				—				(22	)			—
Dividend payments		(17	)			(17	)			(15	)			(51	)			(44	)
Net payments related to employee stock awards		(1	)			(26	)			—				(43	)			(6	)
Other financing activities		—				(1	)			(1	)			(1	)			(4	)
Net cash used in financing activities		(181	)			(148	)			(129	)			(466	)			(437	)
Effect of exchange rate changes on cash and cash equivalents		3				2				6				8				13
Increase (decrease) in cash and cash equivalents		65				42				23				1				(17	)
Cash and cash equivalents at beginning of period		611				569				674				675				714
Cash and cash equivalents at end of period	$	676			$	611			$	697			$	676			$	697

The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:
MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2026				2026				2025				2026				2025
Net income	$	236			$	175			$	74			$	495			$	188
Restructuring and other		5				6				4				14				26
Legal settlement		—				—				—				3				—
Amortization of intangible assets		62				62				63				187				184
Loss on extinguishment of debt		5				4				2				14				8
Amortization of debt issuance costs		3				3				5				9				14
Loss from de-designation of interest rate hedges		—				—				—				2				—
Fees and expenses related to debt activities		—				—				—				18				2
Tax effect of Non-GAAP adjustments		(19	)			(18	)			(18	)			(61	)			(57	)
Non-GAAP net earnings	$	292			$	232			$	130			$	681			$	365
Non-GAAP net earnings per diluted share	$	4.18			$	3.30			$	1.93			$	9.80			$	5.41
Weighted average diluted shares outstanding		72.5				72.7				67.6				72.1				67.6
Convertible debt capped calls		(2.6	)			(2.4	)			—				(2.7	)			—
Non-GAAP weighted average diluted shares outstanding		69.9				70.3				67.6				69.4				67.6
Net cash provided by operating activities	$	292			$	243			$	197			$	588			$	503
Purchases of property, plant and equipment		(49	)			(55	)			(50	)			(128	)			(98	)
Free cash flow	$	243			$	188			$	147			$	460			$	405
Operating expenses	$	348			$	344			$	323			$	1,050			$	973
Restructuring and other		5				6				4				14				26
Legal settlement		—				—				—				3				—
Amortization of intangible assets		62				62				63				187				184
Fees and expenses related to debt activities		—				—				—				18				2
Non-GAAP operating expenses	$	281			$	275			$	256			$	828			$	761
Income from operations	$	326			$	251			$	138			$	726			$	385
Operating margin		23.1%				20.1%				14.0%				19.4%				13.3%
Restructuring and other		5				6				4				14				26
Legal settlement		—				—				—				3				—
Amortization of intangible assets		62				62				63				187				184
Fees and expenses related to debt activities		—				—				—				18				2
Non-GAAP income from operations	$	393			$	320			$	205			$	948			$	597
Non-GAAP operating margin		27.8%				25.6%				20.8%				25.3%				20.6%
Interest expense, net	$	36			$	36			$	50			$	115			$	151
Amortization of debt issuance costs		3				3				5				9				14
Loss from de-designation of interest rate hedges		—				—				—				2				—
Non-GAAP interest expense, net	$	33			$	33			$	45			$	104			$	137
Net income	$	236			$	175			$	74			$	495			$	188
Interest expense, net		36				36				50				115				151
Other (income) expense, net		(2	)			(2	)			2				(4	)			11
Provision for income taxes		51				38				10				106				27
Depreciation		26				23				23				72				74
Amortization of intangible assets		62				62				63				187				184
Stock-based compensation		15				15				12				49				46
Restructuring and other		5				6				4				14				26
Legal settlement		—				—				—				3				—
Loss on extinguishment of debt		5				4				2				14				8
Fees and expenses related to debt activities		—				—				—				18				2
Adjusted EBITDA	$	434			$	358			$	240			$	1,069			$	717
Adjusted EBITDA margin		30.7%				28.6%				24.3%				28.6%				24.7%

MKS Inc.
Schedule Reconconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
	Three Months Ended September 30, 2026									Three Months Ended June 30, 2026
	Income Before Income Taxes			Provision for Income Taxes			Effective Tax Rate			Income  Before Income Taxes			Provision for Income Taxes			Effective Tax Rate
GAAP	$	287		$	51		17.6	%		$	213		$	38		17.8	%
Restructuring and other		5			—						6			—
Legal settlement		—			—						—			—
Amortization of intangible assets		62			—						62			—
Loss on extinguishment of debt		5			—						4			—
Amortization of debt issuance costs		3			—						3			—
Tax effect of Non-GAAP adjustments		—			19						—			18
Non-GAAP	$	362		$	70		19.1	%		$	288		$	56		19.6	%
										Three Months Ended September 30, 2025
										Income Before Income Taxes			Provision for Income Taxes			Effective Tax Rate
GAAP										$	84		$	10		12.3	%
Restructuring and other											4			—
Amortization of intangible assets											63			—
Loss on extinguishment of debt											2			—
Amortization of debt issuance costs											5			—
Tax effect of Non-GAAP adjustments											—			18
Non-GAAP										$	158		$	28		17.9	%
	Nine Months Ended September 30, 2026									Nine Months Ended September 30, 2025
	Income Before Income Taxes			Provision for Income Taxes			Effective Tax Rate			Income  Before Income Taxes			Provision for Income Taxes			Effective Tax Rate
GAAP	$	601		$	106		17.7	%		$	215		$	27		12.7	%
Restructuring and other		14			—						26			—
Legal settlement		3			—						—			—
Amortization of intangible assets		187			—						184			—
Loss on extinguishment of debt		14			—						8			—
Amortization of debt issuance costs		9			—						14			—
Loss from de-designation of interest rate hedges		2			—						—			—
Fees and expenses related to debt activities		18			—						2			—
Tax effect of Non-GAAP adjustments		—			61						—			57
Non-GAAP	$	848		$	167		19.7	%		$	449		$	84		18.7	%

MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures - Q4’26 Guidance
(In millions, except per share data)
	Three Months Ending December 31, 2026
	$ Amount				Per Share
GAAP net income and net income per share	$	294			$	4.04
Restructuring and other		6
Amortization of intangible assets		61
Loss on extinguishment of debt		8
Amortization of debt issuance costs		3
Tax effect of Non-GAAP adjustments		(20	)
Non-GAAP net earnings and net earnings per share	$	352			$	5.00
Weighted average diluted shares		72.9
Convertible debt capped calls		(2.4	)
Non-GAAP weighted average diluted shares		70.5
GAAP operating expenses	$	355
Restructuring and other		(6	)
Amortization of intangible assets		(61	)
Non-GAAP operating expenses	$	288
GAAP net income		294
Interest expense, net		35
Provision for income taxes		16
Depreciation		26
Restructuring and other		6
Amortization of intangible assets		61
Stock-based compensation		15
Loss on extinguishment of debt		8
Adjusted EBITDA	$	461

MKS Inc.
Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

Legal settlement includes charges related to the resolution of legal matters.

Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments, refinancings and/or repricings of our term loan facility.

Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs associated with our debt.

Loss from de-designation of interest rate hedges includes a cash loss from the de-designation of certain interest rate hedges in connection with the voluntary prepayment of the USD term loan B.

Fees and expenses related to debt activities includes direct third-party costs related to repricings or refinancings of our term loan facility and the issuance of our €1.0 billion of senior notes due 2034 in February 2026.

Convertible debt capped calls includes the antidilutive impact of the capped call transactions entered into in connection with the issuance of $1.4 billion of convertible senior notes in May 2024. The capped calls are designed to reduce potential dilution to the Company’s common stock and/or offset cash payments in excess of the principal upon conversion of the notes, subject to a cap. Because the capped calls are excluded from GAAP diluted share calculations, GAAP and Non-GAAP diluted share counts will differ.

Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates. 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were MKS's third-quarter 2026 revenue and earnings?

MKS reported revenue of $1,413 million and GAAP net income of $236 million, or $3.26 per diluted share. A year earlier, revenue was $988 million and GAAP net income was $74 million, or $1.10 per diluted share. Revenue and GAAP earnings exceeded the high end of guidance.

What is MKS's fourth-quarter 2026 earnings outlook?

MKS expects revenue of $1,490 million, plus or minus $40 million, and GAAP diluted earnings of $4.04, plus or minus $0.38 per share. Expected GAAP net income is $294 million, plus or minus $28 million. The outlook excludes the pending sale of Ophir Optics.

Why were MKS's convertible senior notes classified as short-term debt in September 2026?

The notes were classified as short-term debt, net of issuance costs, because the stock-price conversion condition was satisfied during the third quarter. Holders can convert the notes, in whole or in part, at any time during the fourth quarter of 2026.

How much cash and additional borrowing capacity did MKS have at September 30, 2026?

MKS had $676 million in cash and cash equivalents and up to $1.0 billion of additional revolving credit capacity at September 30, 2026. Access to that additional borrowing capacity is subject to certain leverage-ratio requirements.