MKS (NASDAQ:MKSI) Shares Gap Down on Disappointing Earnings

MKS Inc. (NASDAQ:MKSI)’s share price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $262.94, but opened at $243.38. MKS shares last traded at $248.6860, with a volume of 1,370,281 shares.

The scientific and technical instruments company reported $2.47 EPS for the quarter, missing the consensus estimate of $2.51 by ($0.04). The business had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.02 billion. MKS had a net margin of 7.53% and a return on equity of 21.30%. The business’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter last year, the company posted $2.15 earnings per share. MKS has set its Q1 2026 guidance at 1.720-2.280 EPS.

MKS Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Monday, February 23rd will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Monday, February 23rd. This is an increase from MKS’s previous quarterly dividend of $0.22. MKS’s payout ratio is presently 21.36%.

MKS News Summary

Here are the key news stories impacting MKS this week:

• Positive Sentiment: MKS delivered revenue growth (Q4 revenue ~ $1.03B, up ~10.5% YoY) and beat some expectations on top‑line momentum; long‑term demand drivers in semicap and scientific markets remain intact. MKS Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Management completed a refinancing that improves the debt profile and raised the dividend — a shareholder‑friendly move that supports income investors and reduces financing risk. MKS Refinancing Reshapes Debt Profile While Raising Dividend For Investors
• Neutral Sentiment: The earnings‑call transcript provides management context on the quarter and guidance; useful for assessing whether near‑term margin and tariff comments are transitory or structural. MKS Inc. (MKSI) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Wall Street still skewed positive: multiple recent buy/overweight ratings and a median price target near $230 provide analyst support, though targets vary widely. MKSI price targets & analyst notes
• Negative Sentiment: EPS missed consensus by about $0.04 (non‑GAAP EPS $2.47 vs. ~$2.51 expected) and Q1 EPS guidance (1.72–2.28) centers below the consensus midpoint, prompting near‑term valuation re‑rating. MKS Earnings Miss Estimates in Q4, Revenues Increase Y/Y
• Negative Sentiment: Management flagged tariff uncertainty and guided gross margin around ~46% (±1%), creating downside risk to profits if tariffs or retaliation intensify. Tariff caveats and guidance details
• Negative Sentiment: Operating cash flow declined (~19% YoY) and some recent insider selling/institutional rebalancing increase near‑term selling pressure after the stock hit all‑time highs. MKSI Stock Falls on Q4 2025 Earnings

Analyst Ratings Changes

MKSI has been the subject of a number of research reports. Citigroup lifted their price target on MKS from $122.00 to $185.00 and gave the stock a “buy” rating in a research note on Wednesday, November 12th. Benchmark lifted their target price on MKS from $135.00 to $180.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Mizuho set a $260.00 price target on MKS in a report on Wednesday, January 28th. Weiss Ratings restated a “hold (c)” rating on shares of MKS in a research note on Thursday, January 22nd. Finally, Bank of America lifted their price objective on shares of MKS from $215.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $236.50.

Insider Transactions at MKS

In other news, Director Elizabeth Mora sold 300 shares of the company’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $158.81, for a total transaction of $47,643.00. Following the completion of the transaction, the director owned 18,963 shares in the company, valued at approximately $3,011,514.03. This represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of MKS by 3.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 267,421 shares of the scientific and technical instruments company’s stock valued at $21,434,000 after buying an additional 9,170 shares during the last quarter. CWM LLC increased its position in MKS by 139.1% in the 2nd quarter. CWM LLC now owns 6,154 shares of the scientific and technical instruments company’s stock valued at $611,000 after acquiring an additional 3,580 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in MKS during the 2nd quarter valued at $527,000. Ethic Inc. boosted its position in MKS by 24.8% during the 2nd quarter. Ethic Inc. now owns 22,297 shares of the scientific and technical instruments company’s stock worth $2,234,000 after acquiring an additional 4,434 shares during the period. Finally, Brighton Jones LLC acquired a new position in MKS during the 2nd quarter worth $336,000. Institutional investors own 99.79% of the company’s stock.

MKS Stock Performance

The company has a market cap of $16.82 billion, a P/E ratio of 57.29, a PEG ratio of 1.83 and a beta of 1.95. The company has a quick ratio of 1.81, a current ratio of 2.86 and a debt-to-equity ratio of 1.64. The company has a 50 day moving average price of $201.14 and a 200-day moving average price of $154.11.

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.