Zacks Research Comments on MKS's Q3 Earnings (NASDAQ:MKSI)

Key Points

• Zacks Research raised its MKS earnings forecasts, including Q3 2026 EPS to $3.60 from $3.22 and FY2026 EPS to $12.76. Longer-term estimates were also increased through FY2028.
• MKS’s latest quarter exceeded expectations, with EPS of $3.30 versus the $2.91 consensus and revenue of $1.25 billion, up 28.3% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $382.86.
• Despite positive earnings expectations and substantial institutional ownership, risks include a high P/E ratio, shares trading below key moving averages, and recent insider selling, including the CEO’s sale of 10,000 shares.

MKS Inc. (NASDAQ:MKSI - Free Report) - Equities research analysts at Zacks Research upped their Q3 2026 earnings estimates for shares of MKS in a research note issued on Wednesday, August 26th. Zacks Research analyst Team now expects that the scientific and technical instruments company will earn $3.60 per share for the quarter, up from their prior estimate of $3.22. The consensus estimate for MKS's current full-year earnings is $12.96 per share. Zacks Research also issued estimates for MKS's FY2026 earnings at $12.76 EPS, Q3 2027 earnings at $4.64 EPS, FY2027 earnings at $16.52 EPS and FY2028 earnings at $20.10 EPS.

A number of other equities research analysts have also recently commented on MKSI. KeyCorp increased their target price on MKS from $360.00 to $475.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Wells Fargo & Company boosted their price target on MKS from $300.00 to $325.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Mizuho reduced their price objective on MKS from $360.00 to $330.00 and set an "outperform" rating on the stock in a research report on Tuesday. Wall Street Zen upgraded MKS from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 8th. Finally, JPMorgan Chase & Co. boosted their target price on shares of MKS from $365.00 to $380.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $382.86.

MKS Trading Down 0.3%

Shares of MKS stock opened at $270.99 on Friday. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.14 and a quick ratio of 0.72. MKS has a 1 year low of $97.50 and a 1 year high of $447.62. The company has a market capitalization of $18.32 billion, a P/E ratio of 43.22, a P/E/G ratio of 0.58 and a beta of 1.98. The business has a 50 day moving average price of $333.21 and a 200 day moving average price of $295.82.

MKS (NASDAQ:MKSI - Get Free Report) last announced its earnings results on Wednesday, August 5th. The scientific and technical instruments company reported $3.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.91 by $0.39. The company had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.20 billion. MKS had a net margin of 10.15% and a return on equity of 24.72%. The firm's quarterly revenue was up 28.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.77 earnings per share. MKS has set its Q3 2026 guidance at 3.270-3.890 EPS.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in MKSI. California State Teachers Retirement System grew its position in MKS by 44,581.4% during the second quarter. California State Teachers Retirement System now owns 34,732,653 shares of the scientific and technical instruments company's stock valued at $15,449,084,000 after acquiring an additional 34,654,919 shares during the period. Norges Bank purchased a new position in shares of MKS in the 4th quarter worth about $147,453,000. Southpoint Capital Advisors LP purchased a new position in shares of MKS in the 4th quarter worth about $95,880,000. Bank of America Corp DE acquired a new position in shares of MKS in the 2nd quarter valued at about $231,673,000. Finally, Westfield Capital Management Co. LP lifted its stake in shares of MKS by 159.7% in the 4th quarter. Westfield Capital Management Co. LP now owns 839,773 shares of the scientific and technical instruments company's stock valued at $134,196,000 after purchasing an additional 516,409 shares in the last quarter. 99.79% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at MKS

In related news, CEO John Tseng-Chung Lee sold 10,000 shares of the company's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $302.01, for a total transaction of $3,020,100.00. Following the completion of the transaction, the chief executive officer owned 134,776 shares of the company's stock, valued at approximately $40,703,699.76. This represents a 6.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle M. Mccarthy sold 2,434 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $315.23, for a total transaction of $767,269.82. Following the transaction, the chief accounting officer directly owned 2 shares in the company, valued at approximately $630.46. This represents a 99.92% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 12,891 shares of company stock worth $3,919,127. 0.57% of the stock is owned by company insiders.

MKS Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Tuesday, August 25th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Tuesday, August 25th. MKS's payout ratio is presently 15.95%.

Key Headlines Impacting MKS

Here are the key news stories impacting MKS this week:

• Positive Sentiment: Broad-based earnings estimate increases support the bullish case. Zacks Research raised its forecasts across multiple periods, including Q3 2026 EPS to $3.60 from $3.22, FY2026 EPS to $12.76 from $11.86, FY2027 EPS to $16.52 from $15.00, and FY2028 EPS to $20.10 from $18.24. Quarterly estimates for late 2026 through 2028 were also increased, signaling stronger expected earnings momentum. Earnings Estimates Moving Higher for MKS
• Positive Sentiment: Analyst price targets imply substantial potential upside. Zacks reported that Wall Street’s average price target indicates possible upside of 49.8%, although the publication cautioned that price targets are not always reliable. Wall Street Analysts Think MKS Could Surge
• Neutral Sentiment: Valuation and technical trends remain important risks. MKSI has a high trailing P/E ratio of about 43 and is trading below its 50-day average of $333.21 and 200-day average of $295.82, indicating continued volatility despite improving earnings expectations.
• Negative Sentiment: Mizuho lowered its price target to $330. The reduction may temper investor enthusiasm, even though the revised target remains above the recent trading level. Mizuho Lowers MKS Price Target
• Negative Sentiment: The CEO sold 10,000 shares for approximately $3 million. The insider transaction can raise concerns about management’s near-term view of the stock and add selling pressure. MKS CEO Share Sale

About MKS

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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