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 DetailsProducts 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. QuoteRevenues 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 DetailsIn 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 SheetAs 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 GuidanceMKSI 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 ConsiderCurrently, 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.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Amphenol Corporation (APH): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report MKS Inc. (MKSI): Free Stock Analysis Report Digital Turbine, Inc. (APPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks