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UCTT · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Ultra Clean Holdings, Inc. (UCTT) stock moving?
Ultra Clean reported record Q3 2026 revenue of $759 million on Oct 27 and guided Q4 to $800 million to $860 million, which implies further sequential growth. The stock rose to a close of $55.88 on Oct 28 on 4.06M shares, but then fell about 33% to $37.20 by Nov 5 as the $600 million capital raise was disclosed and Needham and TD Cowen cut price targets to $80 and $100. Both brokers kept Buy ratings, so the targets were lowered while the rating view held. The stock has since rebounded to $46.71 on Nov 10, with the Nov 9 session up about 11.6% on 1.2M shares, though volume has faded to 834K shares on Nov 10. A Nov 10 8-K reports that Chief Accounting Officer Brian Harding moves to Senior Vice President, Finance effective Nov 13, a routine internal role change that adds little directional signal. Key uncertainties are dilution from the capital raise and whether Q4 guidance is delivered, since the stock has not regained its Oct 28 level.
News behind the analysis
- Ultra Clean Holdings, Inc. Reports Q3 2026 Financial Results and Provides Q4 OutlookRecord Q3 2026 revenue of $759 million and Q4 revenue guidance of $800 million to $860 million, alongside a disclosed $600 million capital raise.
- Needham Cuts Ultra Clean Holdings Price Target to $80Needham lowered its price target from $125 to $80 per share after the Q3 report.
- TD Cowen Maintains Buy on Ultra Clean Hldgs, Lowers Price Target to $100TD Cowen kept its Buy rating and lowered its price target to $100 following the Q3 results.
- Needham Maintains Buy on Ultra Clean Hldgs, Lowers Price Target to $80Needham maintained its Buy rating while cutting its price target to $80.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, based in Hayward, California, designs and builds critical subsystems and parts that go inside chipmaking machines, such as gas and chemical delivery modules, frame assemblies and precision robotics. It also runs a services business that cleans and tests ultra-high-purity tool parts for chip factories. Most of the machines it supplies parts for are made by a handful of large equipment companies.
How it makes money
It has two segments. Products is by far the larger, at roughly 85–90% of revenue. It mostly makes subsystems and modules under contract for semiconductor equipment makers, so revenue is concentrated in a few big customers such as Applied Materials and Lam Research. Services, roughly 10–15% of revenue, earns recurring fees for cleaning, recoating and contamination testing of tool parts, mainly for chip makers. Margins are fairly thin, with a gross margin of about 16% over the past year. Third-quarter 2026 revenue was about $759 million, up about 49% from a year earlier.
What usually moves UCTT
- Wafer fab equipment spending cycles
- AI-driven chip capacity build-outs
- Orders from key customers like Applied Materials and Lam Research
- US–China export restrictions and tariffs
- Cash flow, inventory levels and margins as it adds capacity