Earnings Call Intelligence Subscribe
Home › Call Sheets › MKSI › Q1'26
Call sheet · Q1'26

MKS Instruments (MKSI)

Q1'26 earnings call · held May 7, 2026 · compared with the Q4'25 call · management-credibility review
5/12
Disclosure score
3 high, 4 medium, 1 low flags
Financial quality
Bottom line
The sleeper story is MKS breaking its historical pattern of outperforming WFE during upcycles; their Q2 semi guide implies they'll underperform by 200-500bps, suggesting either supply chain constraints they won't admit or share loss they're hiding. Yes, the headline numbers beat and Q2 guidance looks strong, but the binding constraint is clearly working capital and cash generation, with FCF collapsing to $29M despite $157M in net income. Most revealing quote: when asked about bookings, they pivoted to 'order volumes are healthy' without any quantification, classic evasion. My view changes if they restore chemistry equipment bookings disclosure and book-to-bill exceeds 1.1x, proving demand isn't actually softening.

The 30-second version

  • Semi revenue guide implies MKS will UNDERPERFORM WFE growth for first time in an upturn
  • Q2 semi revenue acceleration to $550M masks a deceleration in order momentum
  • Chemistry equipment orders quietly disappeared from the narrative after 5 quarters of prominence

What changed this quarter

MetricQ4'25Q1'26Change
Total Revenue$1,030M (+10% YoY)$1,080M (+15% YoY)+4.9% sequential acceleration
EPS$2.47$2.30-6.9% sequential decline
Net Income$168M$157M-6.5% sequential decline
Operating Income$217M$235M+8.3% sequential improvement
Semi Revenue$435M (+9% YoY)$466M (+13% YoY)+7.1% sequential, YoY growth accelerating
E&P Revenue$303M (+19% YoY)$321M (+27% YoY)+5.9% sequential despite Lunar New Year
Specialty Industrial Revenue$295M (+5% YoY)$291M (+8% YoY)-1.4% sequential on seasonality
Gross Margin46.4%47.0%+60bps sequential improvement
Operating Margin21.0%21.8%+80bps sequential expansion
Free Cash FlowNot disclosed$29MWeak Q1 seasonality acknowledged

Accountability tracked

7 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Subscribe to Earnings Call Intelligence
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.