Entegris’ Record Sales Top $1 Billion, Rising 24.6% Year Over Year in Third Quarter
Key Facts
Entegris posted record quarterly sales of $1,005.7 million in the third quarter ended September 26, 2026, up 24.6% from the same period last year and 13.9% from the second quarter. Chief Executive Dave Reeder said revenue and execution discipline drove results above the company’s guidance range. Net income was $157.8 million, compared with $70.5 million a year earlier and $93.6 million in the previous quarter. GAAP diluted earnings per share rose to $1.03 from $0.46 a year earlier and $0.61 in the second quarter. Non-GAAP diluted earnings per share were $1.23, versus $0.72 and $0.93 in the comparable periods.
Results topped analysts’ estimates cited by Investing.com on October 29; non-GAAP earnings per share of $1.23 exceeded the estimate of $1.02 by $0.21. Sales were $1.01 billion, according to the report, compared with consensus of $923.81 million. The company’s previous third-quarter guidance set a sales range of $905 million to $935 million and non-GAAP earnings of $0.96 to $1.04 per share. Management said results exceeded the guidance range. This comparison distinguishes GAAP earnings, which rose year over year to $1.03, from the adjusted non-GAAP figure used by the company and analysts to compare results with expectations.
GAAP gross margin widened to 49.7% from 43.5% a year earlier, while operating margin rose to 22.9% from 15.2%. On an adjusted non-GAAP basis, gross margin was 48.9%, compared with 47.6% in the second quarter and 43.6% a year earlier. Adjusted operating margin climbed to 26.8% from 24.5% in the previous quarter and 21.1% a year earlier. The figures show margins widening alongside sales growth, which Reeder attributed to increasing semiconductor complexity, materials intensity and investment in advanced technologies. He added that customers’ plans to expand their adoption of the company’s products helped it win new designs and grow its business.
Growth came from both of the company’s segments, with Advanced Purity Solutions posting faster growth. Its sales were $604.9 million, compared with $460.8 million a year earlier, up 31.3% year over year and 17.5% quarter over quarter. Materials Solutions recorded sales of $404.1 million, versus $348.6 million a year earlier, up 15.9% year over year and 8.8% from the second quarter. Reeder said semiconductor complexity, materials intensity and investment in advanced technologies support customers’ plans to win new business. He said new design wins, segment business growth and capital spending were among the company’s performance highlights.
Cash generation strengthened the company’s ability to reduce debt during the quarter. Cash from operating activities was $266.8 million, and Entegris repaid $200 million of debt. Reeder said the company generated record cash flow, enabling it to accelerate debt repayment. Free cash flow was $223.6 million, compared with $191 million in the third quarter last year and $120.3 million in the second quarter. Capital expenditures, meanwhile, were $43.2 million, compared with $66.7 million a year earlier.
Entegris expects fourth-quarter sales, for the period ending December 31, 2026, to range from $1,025 million to $1,055 million, and non-GAAP diluted earnings per share to range from $1.32 to $1.40. It also expects adjusted EBITDA margin of 30.7% to 31.2% of sales. On Monday, November 9, 2026, the company will hold its investor day in New York, starting at 1:00 p.m. Eastern Time. Reeder said management will present the company’s strategy and long-term opportunities at the event.
Available closing-price data showed Entegris shares closed at $159.32 on October 28 and $160 on October 29. The October 28 close came before the results announcement, while the following day’s close coincided with publication of news that results had topped expectations. The data provided do not include the stock’s post-announcement movement during the trading session. These prices accompany the third-quarter earnings and sales figures announced by the company. The investor day scheduled for November 9 remains the next event announced by management for presenting its long-term strategy.