MKS Q2 revenue rises 28%, beats analyst estimates on AI growth

Overview

• US semiconductor technology supplier's Q2 revenue grew sharply, beating analyst expectations

• Adjusted EPS and net income for Q2 rose significantly year-over-year

• Company says AI-driven investments and robust order volumes fueled growth across end markets

Outlook

• MKS sees Q3 revenue of $1.35 bln, plus or minus $40 mln

• Company expects Q3 non-GAAP EPS of $3.58, plus or minus $0.31

• MKS says Q3 outlook reflects impact of U.S. tariffs and retaliatory actions

Result Drivers

• AI-DRIVEN INVESTMENT - Co said intensified AI-driven investments in semiconductor and advanced packaging applications boosted Q2 results

• ORDER VOLUMES - Co cited rapidly growing order volumes as a key driver of Q2 growth

• TECHNOLOGY CAPABILITIES - Co said broad technology capabilities and enhanced capacity to deliver to customer demand supported growth

Company press release: ID:nGNX3MrQKs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy"

• Wall Street's median 12-month price target for MKS Incorporated is $415.00, about 29.4% above its August 4 closing price of $320.76

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Aug 4 - Entegris Q2 sales beat on increased semiconductor demand

• Aug 3 - Advanced Energy Q2 revenue beats estimates on semiconductor demand

• Aug 5 - GlobalFoundries tops second quarter estimates on AI chip demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)