Ultra Clean Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Ultra Clean (Nasdaq: UCTT) reported Q1 2026 results for the quarter ended March 27, 2026. Total revenue was $533.7 million (Products $465.7M; Services $68.0M). GAAP results showed a net loss $(17.9) million or $(0.40) per diluted share; non-GAAP net income was $14.5 million or $0.31 per diluted share. The company issued Q2 2026 guidance of $565M–$605M revenue and GAAP diluted net income per share of $0.20–$0.36, with non-GAAP EPS $0.44–$0.60. A conference call and webcast are scheduled for 1:45 p.m. PT.
AI-generated analysis. Not financial advice.
Positive
- Total revenue $533.7 million
- Non-GAAP net income $14.5 million
- Non-GAAP diluted EPS $0.31
- Q2 2026 revenue guidance $565M–$605M
Negative
- GAAP net loss $(17.9) million
- GAAP diluted loss per share $(0.40)
- GAAP operating margin 2.1%
News Market Reaction – UCTT
On the day this news was published, UCTT declined 7.97%, reflecting a notable negative market reaction. Argus tracked a peak move of +12.9% during that session. Argus tracked a trough of -8.4% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $319M from the company's valuation, bringing the market cap to $3.69B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
UCTT’s pre-news setup shows strength while key peers like PLAB, COHU, VECO, DQ, and AEHR all showed negative moves today, suggesting stock-specific dynamics rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 23 | Q4 2025 earnings | Positive | +17.2% | Q4 2025 revenue of $506.6M with strong positive stock reaction. |
| Oct 28 | Q3 2025 earnings | Neutral | -4.2% | Q3 2025 revenue $510.0M, modest GAAP loss and detailed guidance. |
| Jul 28 | Q2 2025 earnings | Neutral | -0.6% | Q2 2025 $518.8M revenue with large goodwill impairment and small price move. |
| Apr 28 | Q1 2025 earnings | Negative | -13.9% | Q1 2025 soft demand commentary and GAAP loss led to a -13.9% move. |
| Apr 03 | Earnings call notice | Neutral | -14.6% | Scheduling Q1 2025 call preceded a -14.64% price reaction. |
Earnings-related headlines have historically produced mixed reactions, with an average move of -3.23%; one recent quarter saw a strong upside reaction while several others saw notable downside moves.
Over the past year, Ultra Clean’s earnings reports have featured revenue in the $510M area with consistent Products and Services contributions and GAAP net losses, often offset by positive non-GAAP profitability. Guidance ranges and detailed margin disclosures have been regular components. The prior Q4 2025 earnings on Feb 23, 2026 showed revenue of $506.6M and a GAAP net loss of $3.3M, yet the stock moved up 17.18%, contrasting with several earlier quarters that triggered declines.
Historical Comparison
In the past year, UCTT issued 5 earnings-tagged releases with an average move of -3.23%, mixing one strong upside reaction with several sizeable declines.
Earnings releases have shown stable revenue around the low-$500M level, repeated GAAP losses, but recurring non-GAAP profitability and guidance ranges each quarter.
Market Pulse Summary
The stock moved -8.0% in the session following this news. A negative reaction despite management highlighting an AI-driven multi-year expansion would fit UCTT’s history of volatile responses around earnings, where the average move on similar events was -3.23%. Past quarters such as Q1 2025 saw double-digit declines following results. GAAP net losses and prior convertible debt activity could heighten sensitivity to any perceived weakness in margins or outlook, influencing downside follow-through.
Key Terms
gaap financial
non-gaap financial
gross margin financial
operating margin financial
net income financial
AI-generated analysis. Not financial advice.
"UCT delivered first quarter results above the midpoint of guidance, supported by demand across our customer base," said James Xiao, CEO. "Our customers' accelerated technology roadmaps give us confidence that we are in the early stages of a multi-year, AI driven expansion and we are executing with urgency to support them. Our focus on ramp-readiness and driving efficiencies across our global footprint positions us well to deliver sustained growth over the long-term."
First Quarter 2026 GAAP Financial Results
Total revenue was
First Quarter 2026 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was
Second Quarter 2026 Outlook
The Company expects revenue in the range of
Conference Call
The call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 90449#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in
The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, fair value adjustments, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our annual report on Form 10-K for the year ended December 26, 2025, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com
ULTRA CLEAN HOLDINGS, INC. | |||
Three Months Ended | |||
March 27, | March 28, | ||
Revenues: | |||
Products | $ 465.7 | $ 457.0 | |
Services | 68.0 | 61.6 | |
Total revenues | 533.7 | 518.6 | |
Cost of revenues: | |||
Products | 400.7 | 390.3 | |
Services | 48.6 | 44.3 | |
Total cost revenues | 449.3 | 434.6 | |
Gross margin | 84.4 | 84.0 | |
Operating expenses: | |||
Research and development | 8.5 | 7.6 | |
Sales and marketing | 15.5 | 14.9 | |
General and administrative | 49.0 | 48.6 | |
Total operating expenses | 73.0 | 71.1 | |
Income from operations | 11.4 | 12.9 | |
Interest income | 1.4 | 1.1 | |
Interest expense | (7.3) | (9.9) | |
Other income (expense), net | (1.3) | 0.8 | |
Income before provision for income taxes | 4.2 | 4.9 | |
Provision for income taxes | 19.2 | 7.4 | |
Net loss | (15.0) | (2.5) | |
Less: Net income attributable to noncontrolling interests | 2.9 | 2.5 | |
Net loss attributable to UCT | $ (17.9) | $ (5.0) | |
Net loss per share attributable to UCT common stockholders: | |||
Basic | $ (0.40) | $ (0.11) | |
Diluted | $ (0.40) | $ (0.11) | |
Shares used in computing net loss per share: | |||
Basic | 45.3 | 45.1 | |
Diluted | 45.3 | 45.1 | |
ULTRA CLEAN HOLDINGS, INC. | |||
March 27, | December 26, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 323.5 | $ 311.8 | |
Accounts receivable, net of allowance for credit losses | 232.8 | 208.8 | |
Inventories | 481.9 | 390.9 | |
Prepaid expenses and other current assets | 59.6 | 48.2 | |
Total current assets | 1,097.8 | 959.7 | |
Property, plant and equipment, net | 319.4 | 324.6 | |
Goodwill | 114.2 | 114.2 | |
Intangible assets, net | 149.9 | 156.8 | |
Deferred tax assets, net | 3.6 | 3.5 | |
Operating lease right-of-use assets | 158.4 | 157.2 | |
Other non-current assets | 11.9 | 13.0 | |
Total assets | $ 1,855.2 | $ 1,729.0 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Current portion of long-term debt | $ — | $ 9.9 | |
Accounts payable | 263.4 | 194.9 | |
Accrued compensation and related benefits | 47.2 | 51.1 | |
Operating lease liabilities | 20.5 | 20.2 | |
Other current liabilities | 26.4 | 24.6 | |
Total current liabilities | 357.5 | 300.7 | |
Long-term debt | 601.9 | 467.0 | |
Deferred tax liabilities | 28.4 | 13.8 | |
Operating lease liabilities | 158.0 | 156.6 | |
Other liabilities | 7.3 | 6.8 | |
Total liabilities | 1,153.1 | 944.9 | |
Equity: | |||
UCT stockholders' equity: | |||
Common stock | 0.1 | 0.1 | |
Additional paid-in capital | 556.8 | 578.7 | |
Common shares held in treasury | (88.7) | (48.4) | |
Retained earnings | 171.3 | 189.2 | |
Accumulated other comprehensive loss | (11.6) | (8.6) | |
Total UCT stockholders' equity | 627.9 | 711.0 | |
Noncontrolling interests | 74.2 | 73.1 | |
Total equity | 702.1 | 784.1 | |
Total liabilities and equity | $ 1,855.2 | $ 1,729.0 | |
ULTRA CLEAN HOLDINGS, INC. | |||
Three Months Ended | |||
March 27, | March 28, | ||
(In millions) | |||
Cash flows from operating activities: | |||
Net loss | $ (15.0) | $ (2.5) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 12.3 | 11.7 | |
Amortization of intangible assets | 6.9 | 7.3 | |
Stock-based compensation | 3.2 | 2.9 | |
Amortization of debt issuance costs | 0.7 | 0.6 | |
Loss on extinguishment of debt | 3.0 | — | |
Loss on disposal of property, plant and equipment | 1.0 | — | |
Change in the fair value of financial instruments | — | (0.1) | |
Deferred income taxes | 14.6 | (0.3) | |
Changes in assets and liabilities: | |||
Accounts receivable | (24.0) | 23.1 | |
Inventories | (91.0) | 6.4 | |
Prepaid expenses and other current assets | (7.3) | (0.6) | |
Other non-current assets | 1.1 | 0.2 | |
Accounts payable | 68.0 | (8.5) | |
Accrued compensation and related benefits | (4.0) | (10.4) | |
Income taxes payable | (2.8) | (0.7) | |
Operating lease right-of-use assets and operating lease liabilities | 0.4 | 1.4 | |
Other liabilities | (0.4) | (2.3) | |
Net cash provided by (used in) operating activities | (33.3) | 28.2 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (9.6) | (12.4) | |
Proceeds from sale of equipment | 0.1 | — | |
Net cash used in investing activities | (9.5) | (12.4) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of convertible notes | 600.0 | — | |
Payment of debt issuance costs | (15.3) | (0.2) | |
Repurchase of common stock | (40.0) | — | |
Payment for capped call transactions | (25.1) | — | |
Principal payments on bank borrowings | (462.0) | (12.0) | |
Net cash provided by (used in) financing activities | 57.6 | (12.2) | |
Effect of exchange rate changes on cash and cash equivalents | (3.1) | 0.1 | |
Net increase in cash and cash equivalents | 11.7 | 3.7 | |
Cash and cash equivalents at beginning of period | 311.8 | 313.9 | |
Cash and cash equivalents at end of period | $ 323.5 | $ 317.6 | |
ULTRA CLEAN HOLDINGS, INC. | |||||||||||
GAAP | Non-GAAP | ||||||||||
Three Months Ended | Three Months Ended | ||||||||||
March 27, 2026 | March 27, 2026 | ||||||||||
Products | Services | Consolidated | Products | Services | Consolidated | ||||||
Revenues | $ 68.0 | $ 533.7 | $ 465.7 | $ 68.0 | $ 533.7 | ||||||
Gross profit | $ 65.0 | $ 19.4 | $ 84.4 | $ 67.8 | $ 20.4 | $ 88.2 | |||||
Gross margin | 14.0 % | 28.5 % | 15.8 % | 14.6 % | 30.0 % | 16.5 % | |||||
Income from operations | $ 7.0 | $ 4.4 | $ 11.4 | $ 19.3 | $ 7.8 | $ 27.1 | |||||
Operating margin | 1.5 % | 6.4 % | 2.1 % | 4.2 % | 11.5 % | 5.1 % | |||||
Three Months Ended | |||||||||||
March 27, 2026 | |||||||||||
Products | Services | Consolidated | |||||||||
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions) | |||||||||||
Reported gross profit on a GAAP basis | $ 65.0 | $ 19.4 | $ 84.4 | ||||||||
Amortization of intangible assets (1) | 1.3 | 1.0 | 2.3 | ||||||||
Stock-based compensation expense (2) | 1.2 | — | 1.2 | ||||||||
Restructuring charges (3) | 0.3 | — | 0.3 | ||||||||
Non-GAAP gross profit | $ 67.8 | $ 20.4 | $ 88.2 | ||||||||
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin | |||||||||||
Reported gross margin on a GAAP basis | 14.0 % | 28.5 % | 15.8 % | ||||||||
Amortization of intangible assets (1) | 0.3 % | 1.5 % | 0.4 % | ||||||||
Stock-based compensation expense (2) | 0.2 % | — % | 0.2 % | ||||||||
Restructuring charges (3) | 0.1 % | — % | 0.1 % | ||||||||
Non-GAAP gross margin | 14.6 % | 30.0 % | 16.5 % | ||||||||
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions) | |||||||||||
Reported income from operations on a GAAP basis | $ 7.0 | $ 4.4 | $ 11.4 | ||||||||
Amortization of intangible assets (1) | 4.0 | 2.9 | 6.9 | ||||||||
Stock-based compensation expense (2) | 3.5 | 0.5 | 4.0 | ||||||||
Restructuring charges (3) | 4.8 | — | 4.8 | ||||||||
Non-GAAP income from operations | $ 19.3 | $ 7.8 | $ 27.1 | ||||||||
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin | |||||||||||
Reported operating margin on a GAAP basis | 1.5 % | 6.4 % | 2.1 % | ||||||||
Amortization of intangible assets (1) | 0.9 % | 4.3 % | 1.3 % | ||||||||
Stock-based compensation expense (2) | 0.8 % | 0.8 % | 0.8 % | ||||||||
Restructuring charges (3) | 1.0 % | — % | 0.9 % | ||||||||
Non-GAAP operating margin | 4.2 % | 11.5 % | 5.1 % | ||||||||
1 Amortization of intangible assets related to the Company's business acquisitions | |||||||||||
2 Represents compensation expense for stock granted to employees and directors | |||||||||||
3 Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures | |||||||||||
ULTRA CLEAN HOLDINGS, INC. | |||||
Three Months Ended | |||||
March 27, | March 28, | December 26, | |||
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions) | |||||
Reported net income (loss) attributable to UCT on a GAAP basis | $ (17.9) | $ (5.0) | $ (3.3) | ||
Amortization of intangible assets (1) | 6.9 | 7.3 | 6.9 | ||
Stock-based compensation expense (2) | 4.0 | 2.6 | 4.9 | ||
Restructuring charges (3) | 4.8 | 3.6 | 1.6 | ||
Fair value related adjustments (4) | — | (0.1) | — | ||
Debt refinancing costs expensed (5) | 3.0 | — | — | ||
Legal-related costs (6) | — | 0.7 | 0.7 | ||
Unrealized loss (gain) on foreign exchange (7) | (1.1) | (2.7) | 1.1 | ||
Income tax effect of non-GAAP adjustments (8) | (3.5) | (2.2) | (3.2) | ||
Income tax effect of valuation allowance (9) | 18.3 | 6.4 | 2.2 | ||
Non-GAAP net income attributable to UCT | $ 14.5 | $ 10.6 | $ 10.9 | ||
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions) | |||||
Reported income from operations on a GAAP basis | $ 11.4 | $ 12.9 | $ 10.9 | ||
Amortization of intangible assets (1) | 6.9 | 7.3 | 6.9 | ||
Stock-based compensation expense (2) | 4.0 | 2.6 | 4.9 | ||
Restructuring charges (3) | 4.8 | 3.6 | 1.6 | ||
Legal-related costs (6) | — | 0.7 | 0.7 | ||
Non-GAAP income from operations | $ 27.1 | $ 27.1 | $ 25.0 | ||
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin | |||||
Reported operating margin on a GAAP basis | 2.1 % | 2.5 % | 2.2 % | ||
Amortization of intangible assets (1) | 1.3 % | 1.4 % | 1.3 % | ||
Stock-based compensation expense (2) | 0.8 % | 0.5 % | 1.0 % | ||
Restructuring charges (3) | 0.9 % | 0.7 % | 0.3 % | ||
Legal-related costs (6) | — % | 0.1 % | 0.1 % | ||
Non-GAAP operating margin | 5.1 % | 5.2 % | 4.9 % | ||
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions) | |||||
Reported gross profit on a GAAP basis | $ 84.4 | $ 84.0 | $ 77.3 | ||
Amortization of intangible assets (1) | 2.3 | 2.3 | 2.2 | ||
Stock-based compensation expense (2) | 1.2 | 0.2 | 0.3 | ||
Restructuring charges (3) | 0.3 | — | 1.8 | ||
Non-GAAP gross profit | $ 88.2 | $ 86.5 | $ 81.6 | ||
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin | |||||
Reported gross margin on a GAAP basis | 15.8 % | 16.2 % | 15.2 % | ||
Amortization of intangible assets (1) | 0.4 % | 0.5 % | 0.4 % | ||
Stock-based compensation expense (2) | 0.2 % | 0.0 % | 0.1 % | ||
Restructuring charges (3) | 0.1 % | — % | 0.4 % | ||
Non-GAAP gross margin | 16.5 % | 16.7 % | 16.1 % | ||
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions) | |||||
Reported Other income (expense), net on a GAAP basis | $ (1.3) | $ 0.8 | $ (1.4) | ||
Fair value related adjustments (4) | — | (0.1) | — | ||
Debt refinancing costs expensed (5) | 3.0 | — | — | ||
Unrealized loss (gain) on foreign exchange (7) | (1.1) | (2.7) | 1.1 | ||
Non-GAAP Other income (expense), net | $ 0.6 | $ (2.0) | $ (0.3) | ||
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share | |||||
Reported net loss on a GAAP basis | $ (0.40) | $ (0.11) | $ (0.07) | ||
Amortization of intangible assets (1) | 0.15 | 0.16 | 0.15 | ||
Stock-based compensation expense (2) | 0.09 | 0.06 | 0.11 | ||
Restructuring charges (3) | 0.10 | 0.08 | 0.03 | ||
Fair value related adjustments (4) | 0.00 | 0.00 | — | ||
Debt refinancing costs expensed (5) | 0.06 | — | — | ||
Legal-related costs (6) | — | 0.01 | 0.02 | ||
Unrealized loss (gain) on foreign exchange (7) | (0.02) | (0.06) | 0.02 | ||
Income tax effect of non-GAAP adjustments (8) | (0.08) | (0.05) | (0.07) | ||
Income tax effect of valuation allowance (9) | 0.40 | 0.14 | 0.05 | ||
Impact of dilutive shares | 0.01 | — | — | ||
Non-GAAP net earnings | $ 0.31 | $ 0.23 | $ 0.24 | ||
Weighted average number of diluted shares (in millions) on a non-GAAP basis | 46.3 | 45.4 | 45.8 | ||
ULTRA CLEAN HOLDINGS, INC. | |||||
Three Months Ended | |||||
March 27, | March 28, | December 26, | |||
Provision for income taxes on a GAAP basis | $ 19.2 | $ 7.4 | $ 2.6 | ||
Income tax effect of non-GAAP adjustments (8) | 3.5 | 2.2 | 3.2 | ||
Income tax effect of valuation allowance (9) | (18.3) | (6.4) | (2.2) | ||
Non-GAAP provision for income taxes | $ 4.4 | $ 3.2 | $ 3.6 | ||
Income before income taxes on a GAAP basis | $ 4.2 | $ 4.9 | $ 2.0 | ||
Amortization of intangible assets (1) | 6.9 | 7.3 | 6.9 | ||
Stock-based compensation expense (2) | 4.0 | 2.6 | 4.9 | ||
Restructuring charges (3) | 4.8 | 3.6 | 1.6 | ||
Fair value related adjustments (4) | — | (0.1) | — | ||
Debt refinancing costs expensed (5) | 3.0 | — | — | ||
Legal-related costs (6) | — | 0.7 | 0.7 | ||
Unrealized loss (gain) on foreign exchange (7) | (1.1) | (2.7) | 1.1 | ||
Non-GAAP income before income taxes | $ 21.8 | $ 16.3 | $ 17.2 | ||
Effective income tax rate on a GAAP basis | 457.1 % | 151.0 % | 130.0 % | ||
Non-GAAP effective income tax rate | 20.0 % | 19.6 % | 20.9 % | ||
1 Amortization of intangible assets related to the Company's business acquisitions | |||||
2 Represents compensation expense for stock granted to employees and directors | |||||
3 Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures | |||||
4 Fair value adjustments related to contingent consideration | |||||
5 Represents the third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt | |||||
6 Represents estimated costs related to certain legal proceedings | |||||
7 Represents unrealized foreign exchange gains and losses arising from the remeasurement of monetary assets and liabilities | |||||
8 Tax effect of items (1) through (7) above based on the non-GAAP tax rate | |||||
9 The Company's GAAP tax expense is generally higher than the Company's non-GAAP tax expense, primarily due to losses in the |
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SOURCE Ultra Clean Holdings, Inc.