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MKSI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is MKS Inc. Common Stock (MKSI) stock moving?
MKS reported record Q3 2026 results: revenue of $1,413M (up 43% from $988M a year earlier), non-GAAP EPS of $4.18 against a $3.63 estimate, and record Adjusted EBITDA of $434M. Q4 guidance was also above consensus, with sales of $1.49B-$1.53B versus $1.40B expected and adjusted EPS of $4.62-$5.38 versus $3.93. Management tied growth to AI-driven demand in semiconductor (+54% YoY) and electronics and packaging (+43% YoY). Capital returns were added with a $500M buyback and a $0.25 quarterly dividend, and the October 19 agreement to sell Ophir Optics to TTM for $650M cash (about 18x projected FY 2026 Adjusted EBITDA, closing expected in Q2 2027) should further strengthen the balance sheet. Despite this, the stock fell from a $218.24 close on Oct 28 to $176.82 on Nov 5, a drop of about 19%, on heavy volume of 3.48M shares after results. Analysts kept positive ratings but lowered price targets: Citigroup to $350 (Buy), Needham to $300 (Buy), and Wells Fargo to $195 (Equal-Weight), which is below the current price. The sources do not state the exact reason for the post-earnings selloff. The stock has since rebounded to $213.47 on Nov 10, about 21% above the low, with a +6.5% day on Nov 9 on 2.05M shares. The rebound and the raised guidance support the fundamental picture, but the wide analyst target range and the pending Ophir closing leave some uncertainty.
News behind the analysis
- Citigroup Maintains Buy on MKS, Lowers Price Target to $350Citigroup kept its Buy rating on MKS but cut its price target to $350 after the third-quarter results.
- Wells Fargo Maintains Equal-Weight on MKS, Lowers Price Target to $195Wells Fargo kept an Equal-Weight rating and lowered its price target to $195, below the latest close of $213.47.
- Needham Maintains Buy on MKS, Lowers Price Target to $300Needham kept its Buy rating and reduced its price target to $300 after the quarterly report.
- MKS Inc. Reports Third Quarter 2026 Financial ResultsRecord Q3 revenue of $1,413 million, up from $988 million a year earlier, exceeded the high end of guidance, with record non-GAAP EPS of $4.18 and Adjusted EBITDA of $434 million.
- CORRECTION: MKS Sees Q4 Adj EPS $4.62-$5.38 vs $3.93 Est; Sees Sales $1.490B-$1.530B vs $1.398B EstMKS guided Q4 adjusted EPS to $4.62-$5.38 against a $3.93 estimate and sales to $1.490B-$1.530B against a $1.398B estimate.
- MKS Inc. Announces New $500 Million Share Repurchase Program and Quarterly DividendThe board authorized a new $500 million share repurchase program and declared a quarterly cash dividend of $0.25 per share.
- MKS Instruments Q3 Adj. EPS $4.18 Beats $3.63 Estimate, Sales $1.413B Beat $1.355B EstimateThird-quarter adjusted EPS and sales both beat consensus estimates.
- MKS Sees Q4 GAAP EPS $3.66-$4.42 vs $3.05 EstMKS guided Q4 GAAP EPS to $3.66-$4.42, above the $3.05 estimate.
- MKS Inc. Announces $500M Stock Repurchase ProgramMKS announced a $500 million stock repurchase program alongside its results.
- MKS Instruments Q3 2026 Earnings Call TranscriptThe transcript of the third-quarter 2026 earnings call, where management discussed results and outlook.
About MKS Inc. Common Stock
MKS Inc. (formerly MKS Instruments), based near Boston, makes the parts and subsystems that go inside chipmaking tools and electronics production lines: power and gas-flow control, vacuum, lasers, optics and motion systems, plus specialty chemicals for plating. Its Atotech chemistry business, bought in 2022, makes it unusual because it supplies both hardware for chip fabs and chemicals for printed circuit boards and advanced chip packaging.
How it makes money
MKS sells equipment, components and consumable chemicals to three end markets. In Q2 2026, semiconductor was roughly 44% of revenue, electronics and packaging roughly 30%, and specialty industrial (research, life sciences, defense, industrial) roughly 25%. Its main semiconductor customers are companies that build chipmaking tools. The chemicals side brings in steadier, repeat sales. Quarterly revenue reached about $1.4 billion in Q3 2026, up from about $1.0 billion a year earlier. MKS carries significant debt from the Atotech deal and has been working to reduce it.
What usually moves MKSI
- Chipmaker and fab-equipment spending cycles
- AI-driven demand for advanced chip packaging and circuit boards
- Paying down debt from the Atotech acquisition
- Industrial and electronics demand, plus China trade restrictions
- Swings in gross margin as it adds production capacity