MKS (NASDAQ:MKSI) Posts Earnings Results, Beats Estimates By $0.39 EPS

MKS (NASDAQ:MKSI) posted its quarterly earnings results on Wednesday. The scientific and technical instruments company reported $3.30 earnings per share for the quarter, beating analysts’ consensus estimates of $2.91 by $0.39, FiscalAI reports. MKS had a return on equity of 25.35% and a net margin of 10.15%.The business had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter in the prior year, the business earned $1.77 EPS. The firm’s revenue for the quarter was up 28.3% on a year-over-year basis. MKS updated its Q3 2026 guidance to 3.270-3.890 EPS.

MKS Stock Performance

MKS stock traded up $13.68 during midday trading on Friday, hitting $304.99. The company’s stock had a trading volume of 1,224,056 shares, compared to its average volume of 1,410,718. MKS has a 1-year low of $97.30 and a 1-year high of $447.62. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.11 and a quick ratio of 0.70. The company has a 50-day moving average price of $348.18 and a two-hundred day moving average price of $289.00. The company has a market cap of $20.60 billion, a price-to-earnings ratio of 48.64, a PEG ratio of 0.84 and a beta of 1.98.

MKS Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Tuesday, August 25th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Tuesday, August 25th. MKS’s dividend payout ratio (DPR) is currently 15.95%.

Insider Activity

In other MKS news, CFO Ramakumar Mayampurath sold 8,810 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $315.48, for a total transaction of $2,779,378.80. Following the transaction, the chief financial officer owned 1 shares in the company, valued at $315.48. This represents a 99.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP David Philip Henry sold 2,500 shares of MKS stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $330.50, for a total transaction of $826,250.00. Following the completion of the sale, the executive vice president owned 16,341 shares of the company’s stock, valued at approximately $5,400,700.50. The trade was a 13.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 54,406 shares of company stock worth $17,577,866. Insiders own 0.57% of the company’s stock.

Hedge Funds Weigh In On MKS

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE lifted its position in shares of MKS by 44.2% during the 2nd quarter. Bank of America Corp DE now owns 982,643 shares of the scientific and technical instruments company’s stock valued at $97,635,000 after acquiring an additional 301,223 shares during the period. Rafferty Asset Management LLC grew its stake in MKS by 63.4% during the second quarter. Rafferty Asset Management LLC now owns 878,114 shares of the scientific and technical instruments company’s stock worth $87,249,000 after buying an additional 340,645 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in MKS by 2.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 870,654 shares of the scientific and technical instruments company’s stock valued at $139,131,000 after buying an additional 24,349 shares during the period. Balyasny Asset Management L.P. increased its holdings in MKS by 16.0% in the 3rd quarter. Balyasny Asset Management L.P. now owns 850,245 shares of the scientific and technical instruments company’s stock valued at $105,235,000 after buying an additional 117,563 shares during the period. Finally, Millennium Management LLC raised its position in shares of MKS by 83.1% in the 4th quarter. Millennium Management LLC now owns 817,251 shares of the scientific and technical instruments company’s stock valued at $130,597,000 after buying an additional 371,003 shares in the last quarter. 99.79% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting MKS

Here are the key news stories impacting MKS this week:

• Positive Sentiment: Quarterly results exceeded expectations. MKS reported second-quarter revenue of approximately $1.25 billion, up 28.3% year over year and above the $1.20 billion consensus estimate. Adjusted EPS was $3.30, topping expectations near $2.91-$2.94 and rising sharply from $1.77 a year earlier. MKSI Q2 Earnings Beat Estimates, Revenues Increase Year Over Year
• Positive Sentiment: Management issued upbeat third-quarter guidance. MKS forecast EPS of $3.27-$3.89 and revenue of $1.3-$1.4 billion, both above Wall Street’s prior expectations. The outlook reflects broad end-market growth and stronger operating leverage. MKS Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: AI demand is improving future visibility. MKS is ramping semiconductor and advanced-packaging capacity to meet AI-driven demand, with management citing better visibility into 2027. MKSI Q2 Earnings Call Highlights AI-Driven Capacity Ramp
• Positive Sentiment: Analysts raised valuation targets. JPMorgan increased its target to $380 and maintained an Overweight rating; Wells Fargo raised its target to $325 while keeping an Equal Weight rating. Needham previously raised its target to $390 and maintained a Buy rating. Brokerages’ overall recommendation is Moderate Buy.
• Neutral Sentiment: Near-term profitability remains a consideration. The capacity expansion supporting AI growth is creating some margin pressure, which could limit upside if execution or demand weakens.
• Negative Sentiment: Insider selling is a cautionary signal. Reported insider activity over the past six months showed 40 sales and no purchases, including sales by senior executives. This does not necessarily indicate deteriorating fundamentals but may temper investor enthusiasm.

Wall Street Analyst Weigh In

Several equities analysts have commented on MKSI shares. Mizuho set a $360.00 price objective on shares of MKS in a report on Thursday. BMO Capital Markets initiated coverage on shares of MKS in a report on Tuesday, June 30th. They set an “outperform” rating and a $453.00 target price for the company. Weiss Ratings restated a “hold (c)” rating on shares of MKS in a research report on Friday, July 17th. KeyCorp boosted their price objective on MKS from $360.00 to $475.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Finally, Deutsche Bank Aktiengesellschaft set a $360.00 target price on MKS in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, MKS currently has an average rating of “Moderate Buy” and an average target price of $385.00.

MKS Company Profile

MKS Instruments, Inc (NASDAQ: MKSI) designs, manufactures and markets technology solutions that enable advanced processes in a variety of high‐technology and industrial markets. The company’s core offerings include vacuum and gas delivery systems, pressure and flow measurement instruments, optical metrology tools, photonics subsystems and critical components for manufacturing processes. These products support the precise control and monitoring needs of semiconductor, industrial manufacturing, life and health sciences, and research applications.

The company’s product portfolio features mass flow controllers, pressure transducers, vacuum gauges, gas purity monitors, laser-based metrology systems and photonic devices such as lasers and detectors.