Abstract

Ultra Clean will release its quarterly results on February 23, 2026 Post Market. This preview consolidates company guidance and recent forecasts to outline expected revenue, margin trajectory, EPS dynamics, and segment performance alongside institutional viewpoints for the period.

Market Forecast

For the current quarter, Ultra Clean’s forecast implies revenue of $503.33 million, a year-over-year decline of 9.99%, with estimated EPS at $0.23 and estimated EBIT at $22.14 million; year-over-year declines are forecast at 49.41% for EPS and 43.44% for EBIT. The company’s margin profile is expected to remain pressured, and no formal gross profit margin or net margin forecast has been provided. Ultra Clean’s core product sales remain the centerpiece of the business outlook, while services provide incremental, more stable revenue. The most promising segment is services, which has demonstrated resilience relative to product sales; last quarter services revenue was $65.00 million, though year-over-year comparisons were not disclosed.

Last Quarter Review

In the previous quarter, Ultra Clean reported revenue of $510.00 million, a gross profit margin of 16.12%, GAAP net profit attributable to the parent company of -$10.90 million, a net profit margin of -2.14%, and adjusted EPS of $0.28, with year-over-year changes of -5.63% for revenue, -26.08% for EBIT, and -20.00% for EPS. A notable highlight was performance relative to expectations: EBIT and EPS both exceeded the company’s prior estimates, with EBIT of $29.20 million versus a $24.91 million estimate and EPS of $0.28 versus a $0.25 estimate. Main business momentum centered on product sales at $445.00 million, complemented by services revenue of $65.00 million, although year-over-year growth details by segment were not disclosed.

Current Quarter Outlook

Main Business: Products

The products segment remains the dominant revenue driver, historically accounting for the majority of quarterly revenue. Sequentially, the prior quarter’s product revenue of $445.00 million illustrates the scale of this segment, but the company-level forecast suggests ongoing top-line pressure this quarter. With an estimated revenue decline of 9.99% year over year, the products segment is likely to absorb most of the slowdown, reflecting cautious customer capital spending and elongated procurement cycles. Price discipline and cost efficiencies will be essential to stabilize gross margins near the mid-teens, but the expected EPS and EBIT declines indicate continued compression, especially if mix skews toward lower-margin components or if utilization remains below optimal levels.

Most Promising Business: Services

Services revenue of $65.00 million last quarter was the smaller contributor, yet it provides a buffer against volatility in product demand. The services book tends to track installed base growth and maintenance cycles, which can be more predictable even during downturns. Given the company’s current-quarter outlook for weaker EPS and EBIT, the consistency of services may mitigate margin variability, particularly if service contracts include pricing protections or indexed escalators. While services alone cannot offset the broader revenue decline, sustained performance can underpin gross margin and cash generation, supporting operational flexibility through the cycle.

Factors Most Impacting the Stock This Quarter

Near-term stock performance will likely hinge on revenue trajectory versus the $503.33 million estimate and the degree of margin containment in light of the estimated 49.41% EPS decline and 43.44% EBIT decline year over year. Any commentary that points to stabilization in orders or improved visibility for the products segment could help sentiment, especially if backlog trends or lead times show improvement. Conversely, indications of further price pressure, delayed customer qualifications, or uneven utilization could extend margin compression and reinforce cautious views. Investors will also watch cash discipline and working capital, given negative GAAP net income last quarter despite adjusted EPS outperformance.

Analyst Opinions

Across recent institutional commentary, the majority view has been cautious, reflecting expectations for a softer revenue print and margin pressure through the current quarter. Analysts emphasize the forecasted declines in EPS and EBIT and point to the mid-teens gross margin baseline as a key area to monitor for potential downside risk. Coverage generally highlights the resilience of services but views it as insufficient to counteract weaker product demand in the near term. Some well-known firms have reiterated neutral-to-hold stances, noting that execution on cost controls and any early signs of demand stabilization would be needed to shift the outlook. The prevailing consensus expects muted performance this quarter, with attention focused on qualitative guidance for subsequent quarters to assess timing for recovery.