Abstract

MKS Instruments will report its quarterly results on February 17, 2026 Post Market; this preview summarizes consensus expectations and company guidance on revenue, margins, net profit, and adjusted EPS, with a focus on business mix and analyst views over the most recent six months.

Market Forecast

- For the current quarter, the market projects MKS Instruments’ revenue at $1.02 billion, implying an estimated year-over-year increase of 11.76%, with EBIT estimated at $212.32 million (up 12.07% YoY) and adjusted EPS estimated at $2.45 (up 25.44% YoY). If disclosed in management commentary, investors will watch for gross margin, net margin, and adjusted EPS color to gauge operating leverage; revenue guidance suggests improved demand breadth. - The company’s core mix continues to be products at $0.86 billion and services at $0.13 billion last quarter, and commentary points to stabilization across end markets; the most promising near-term driver is product revenue scale, supported by incremental utilization upticks and improving order backlog dynamics.

Last Quarter Review

- In the previous quarter, MKS Instruments delivered revenue of $0.99 billion, a gross profit margin of 46.66%, GAAP net profit attributable to shareholders of $74.00 million, a net profit margin of 7.49%, and adjusted EPS of $1.93, with revenue up 10.27% year-over-year and adjusted EPS up 12.21% year-over-year. - Operating performance improved versus expectations as EBIT of $205.00 million exceeded the prior estimate, indicating solid expense discipline and initial price-cost benefits.

- Main business highlights: products revenue was $0.86 billion and services revenue was $0.13 billion, reflecting an ongoing revenue mix that supports scale benefits in manufacturing and consistent, higher-margin service contributions.

Current Quarter Outlook

Main business momentum

Product sales are positioned to benefit from an 11.76% year-over-year revenue growth projection to $1.02 billion, suggesting improving order conversion and a healthier shipment cadence. The prior quarter’s gross margin of 46.66% offers a baseline; with EBIT forecast to rise 12.07% year over year to $212.32 million, mix and operational efficiency could provide incremental operating leverage. The projected adjusted EPS of $2.45, up 25.44% year over year, points to lower per-unit cost absorption and disciplined operating expenses, even as revenue scales. Investors will monitor whether materials and logistics costs remain contained, as this influences the potential to sustain or expand margins. If management emphasizes improved through-cycle pricing power or product cost-down achievements, that would bolster confidence in maintaining mid-to-high 40s gross margins.

Most promising segment trajectory

Within the prior quarter’s revenue composition, products at $0.86 billion remain the largest and the most sensitive to cyclical demand and capital spending trends, making it the key swing factor for upside. The estimate for $1.02 billion in current-quarter revenue, together with a forecast EPS expansion to $2.45, implies product volume leverage that can lift both EBIT and net margin. Services at $0.13 billion provide recurring support and can be a stabilizer for blended profitability; however, the growth delta this quarter is likely to be captured predominantly by the product side as fabs increase utilization and order activity improves. Should product bookings outpace shipments again, it would set a favorable setup for subsequent quarters by extending backlog visibility.

Key stock price drivers this quarter

Margin commentary will be a central driver, given the 46.66% gross margin in the last quarter and the earnings sensitivity to small changes in mix and utilization. The step-up from adjusted EPS of $1.93 last quarter to an estimated $2.45 this quarter underscores how operating leverage can influence share performance if realized. Any indication of sustained mid-40s gross margins alongside mid-teens EBIT growth could reinforce a narrative of improving profitability through the cycle. Investors will also focus on cash generation and whether earnings quality remains supported by core operations rather than non-operating items, which would validate the forecasted year-over-year expansion in EPS and EBIT. Guidance language around demand breadth and order linearity will be watched closely as a barometer for whether revenue growth can persist into the next quarter.

Analyst Opinions

Across recent previews, the majority skew is bullish, citing the anticipated 11.76% year-over-year revenue growth and 25.44% year-over-year expansion in adjusted EPS as signs of improving operating leverage. Analysts highlight that last quarter’s EBIT of $205.00 million exceeded prior estimates and that the set-up into this quarter incorporates both mix resilience and expense discipline. The constructive cases emphasize that the forecasted EBIT of $212.32 million and adjusted EPS of $2.45 reflect continued recovery and the potential for incremental margin expansion if product demand remains firm. The positive view anticipates that services revenue will continue to support gross margin stability while product shipments and bookings determine the pace of earnings momentum. Leading institutional commentary frames this quarter as a key checkpoint for validating better demand breadth, with upside risk if bookings convert faster than modeled.