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Call sheet · Q2'26

MKS Instruments (MKSI)

Q2'26 earnings call · held August 6, 2026 · compared with the Q1'26 call · management-credibility review
7/12
Disclosure score
1 medium flags
Financial quality
Bottom line
Revenue rose 28% year over year to about $1.25B, modestly above the $1.24B guidance high end. The recurring-margin test matters: 47.6% gross margin included about 100bps of discrete benefits. Capacity planning now uses a higher $200B-$250B WFE scenario, while regular $100M debt payments continued. Watch margin without refunds, ramp execution and cash conversion. Call omissions alone do not establish that cash-flow or debt disclosures vanished.

The 30-second version

  • Revenue grew 28% year over year; that is not the guidance beat
  • Gross margin included about one point of discrete benefits
  • The capacity plan now supports a higher demand scenario

What changed this quarter

MetricQ1'26Q2'26Change
Total Revenue$1.08B, +15% YoY$1.25B, +28% YoYGrowth rate nearly doubled QoQ
Semiconductor Revenue$466M, +13% YoY$554M, +28% YoYAccelerated 15pts; Q3 guide implies >50% YoY
E&P Revenue$321M, +27% YoY$381M, +44% YoYStrongest segment, but margin dilutive mix
Specialty Industrial Revenue$291M, +8% YoY$313M, +14% YoY, highest since 2023Doubled growth rate, narrow (2-market) driver base
Gross Margin (reported)47.0%, at high end of guide47.6%, incl. ~100bps one-time tariff refundHeadline up, underlying flat
Operating Margin (non-GAAP)21.8%25.6%, +480bps YoYStrong leverage, but boosted by discrete GM item
EPS (non-GAAP)$2.30, guided $2.90 for Q2$3.30, above high end of guideAbout 13.8% above the $2.90 guide midpoint and $0.10 above the $3.20 high end
Free Cash Flow$29M, explicitly disclosedNot repeated in the cited call cash-flow discussionCheck issuer release and filing; call omission is not missing public disclosure
Net Debt ($)$3.6B explicit figureDollar figure not repeated in cited call discussion; leverage ratio providedNo conclusion about public disclosure or deterioration from the call alone
Leverage Ratio3.5x3.0x, on $1.1B TTM EBITDADown half a turn

Accountability tracked

6 new promises made1 narrative shift flagged5 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.
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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.

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