MKS Instruments (MKSI)
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-09
$268.05+0.96%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-09
Warn: Primary pillar under pressure — Revenue grows at least 7% per year: Q1 FY26 +15.0% vs 7.0% target.
MKS Instruments grew revenue 15% last quarter. Profit margin rose to 47%. Net income grew from $62M to $84M. The company guides $1.2B revenue next quarter.
Revenue growth could slow below 7%. Profit margins might fall below 46%. Rising costs could hurt net income gains.
The price is about 37% above our fair value near $273. Analysts expect 23% revenue growth, higher than our 11% implied growth.
Breaks if: gross margin falls below 46% next quarter
Maintain and improve gross margins through operational efficiency and favorable product mix.
Management stated this priority in 4 of last 4 quarters. Gross margin improved from 46.4% in 2025-Q4 to 47.6% in 2026-Q2, consistently meeting or exceeding guidance ranges. The trajectory shows delivering on margin enhancement through operational discipline.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is characterized as a durable compounder. The current thesis is intact, supported by strong revenue and profit growth, but it faces some near-term risks.
The market currently prices MKSI as justified, with a low fragility tier. It is seen as cheap compared to peers, indicating that expectations are somewhat lower than what the company has recently delivered.
Fundamentals are likely to continue improving, as management is on track with priorities like revenue growth and enhancing profit margins. The recent financial performance has been strong, with significant increases in net income and earnings per share.
The long-term thesis hinges on several factors, including whether MKSI maintains its guidance in the next earnings call and if macroeconomic conditions, such as potential Fed rate cuts, favor the tech sector. Additionally, the performance of sector peers will be crucial for maintaining momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no current threats to the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Gross margin of 47.6% in Q2 2026, above guidance.”
“Gross margin of 47.0% in Q1 2026, plus or minus 1.0%.”
“Gross margin of 46.4% in Q4 2025.”
“Gross margin guidance of 46.5%, plus or minus 1.0%.”
Breaks if: management priorities fall off track or miss targets
Aim to increase net income through revenue growth and cost management.
Drive accelerated revenue growth across semiconductor, electronics & packaging, and specialty industrial markets.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $936 million in 2025-Q1 to $1,248 million in 2026-Q2, reflecting accelerated double-digit year-over-year growth across all end markets. Management consistently emphasizes broad-based demand and strong bookings, indicating the trajectory is delivering.
Maintain and improve gross margins through operational efficiency and favorable product mix.
Management stated this priority in 4 of last 4 quarters. Gross margin improved from 46.4% in 2025-Q4 to 47.6% in 2026-Q2, consistently meeting or exceeding guidance ranges. The trajectory shows delivering on margin enhancement through operational discipline.
“Gross margin of 47.6% in Q2 2026, above guidance.”
“Gross margin of 47.0% in Q1 2026, plus or minus 1.0%.”
Breaks if: net income growth falls below 7% YoY next year
Aim to increase net income through revenue growth and cost management.
Breaks if: YoY revenue growth falls below 7% next year
Aim to increase net income through revenue growth and cost management.
Drive accelerated revenue growth across semiconductor, electronics & packaging, and specialty industrial markets.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $936 million in 2025-Q1 to $1,248 million in 2026-Q2, reflecting accelerated double-digit year-over-year growth across all end markets. Management consistently emphasizes broad-based demand and strong bookings, indicating the trajectory is delivering.
Over the next 1 to 3 years, MKSI's strong fundamentals and management execution are key to its performance, but external factors could influence its trajectory. Not investment advice.
“MKS delivered accelerated double-digit year-over-year revenue growth across each of our end markets in the second quarter.”
“Our robust first quarter performance and second quarter outlook reflect accelerating, broad-based demand.”
“Our broad technology portfolio drove double-digit growth in our two key end markets in 2025.”
“Third Quarter 2025 Guidance 30 million revenue, plus or minus $40 million.”
“Gross margin of 46.4% in Q4 2025.”
“Gross margin guidance of 46.5%, plus or minus 1.0%.”
“MKS delivered accelerated double-digit year-over-year revenue growth across each of our end markets in the second quarter.”
“Our robust first quarter performance and second quarter outlook reflect accelerating, broad-based demand.”
“Our broad technology portfolio drove double-digit growth in our two key end markets in 2025.”
“Third Quarter 2025 Guidance 30 million revenue, plus or minus $40 million.”