10-Q · April 30, 2026
Entegris reported strong Q1 2026 results, with net sales of $811.9 million exceeding estimates by $5.9 million—a 5.0% increase from Q1 2025. EPS of $0.86 surpassed expectations by 14.67%, driven by improved operational…
Earnings analysis · 10-Q
ENTG earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Entegris delivered a strong Q2, with revenue up 11.5% to $883.2 million, GAAP EPS up to $0.61 from $0.35, and gross and operating margins expanding to 47.6% and 18.6%, respectively. APS drove the outperformance, growing…
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Entegris delivered a strong Q2, with revenue up 11.5% to $883.2 million, GAAP EPS up to $0.61 from $0.35, and gross and operating margins expanding to 47.6% and 18.6%, respectively. APS drove the outperformance, growing revenue 17% and segment profit 57%, while MS also expanded. Operating cash flow improved to $339.2 million for the first half and net debt fell by $241.6 million, though leverage remains high at $3.456 billion and part of the margin expansion reflects an estimated $73.0 million 2026 depreciation reduction from revised asset lives.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.61
What stood out
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Revenue growth accelerated in Q2
Q2 net sales rose 11.5% year over year to $883.2 million from $792.4 million, and increased 8.8% sequentially from $811.8 million in Q1 2026. The year-over-year increase reflected a $97.8 million volume-led sales increase, partly offset by a $7.0 million foreign-exchange headwind.
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Margins expanded materially
Gross margin expanded 3.2 percentage points year over year to 47.6% from 44.4%, and increased 0.7 point sequentially from 46.9%. Operating margin rose 5.2 points year over year to 18.6% from 13.4%, aided by higher production volumes and lower depreciation.
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EPS and earnings rose sharply
GAAP diluted EPS increased to $0.61 from $0.35 a year earlier, while non-GAAP EPS rose 41% to $0.93 from $0.66. Net income increased to $93.6 million from $52.8 million.
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Both segments grew, led by APS
APS was the primary growth engine: revenue increased 17% to $514.6 million and segment profit climbed 57% to $150.9 million. MS revenue grew 5% to $371.3 million, with segment profit up 7% to $77.7 million.
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Cash generation and capex improved
Six-month operating cash flow increased to $339.2 million from $253.9 million, while cash used in investing activities declined to $74.6 million from $174.9 million. The filing attributes the investing decline primarily to a $93.7 million reduction in property, plant and equipment cash spending.
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Deleveraging and liquidity capacity improved
Net debt declined to $3.456 billion at June 27, 2026 from $3.698 billion at year-end, after $250.0 million of six-month Term Loan repayments. The revolver was expanded to $750.0 million from $575.0 million and its maturity extended to April 29, 2031.
What to watch
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Margin gain includes $73.0M depreciation benefit
Management estimates that extending useful lives will reduce 2026 depreciation expense by approximately $73.0 million, primarily in cost of revenues and R&D. This accounting-estimate benefit contributed to the 3.2-point year-over-year gross-margin expansion, creating a comparability and earnings-quality consideration.
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Leverage and interest burden remain high
Total debt remained substantial at $3.456 billion net of discount and issuance costs as of June 27, 2026, despite reduction from $3.698 billion at December 31, 2025. Q2 interest expense was $48.6 million, equal to 5.5% of sales.
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Impairment and refinancing charges affected GAAP EPS
Q2 other expense was $7.8 million, including a $6.7 million equity-investment impairment and a $1.7 million loss on debt extinguishment. These items reduced reported earnings despite operating improvement.
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No formal risk-factor update; trade uncertainty persists
The filing states there were no material changes to risk factors from the 2025 annual report. Nonetheless, management identifies tariffs and trade measures as near-term risks; the Q2 revenue bridge already included a $7.0 million unfavorable foreign-currency translation impact.
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Cash declined modestly and is largely overseas
Cash and equivalents declined to $353.6 million at June 27, 2026 from $360.4 million at year-end as $270.1 million of financing cash outflows exceeded operating inflows after investing and capital returns. Of cash, $287.8 million was held outside the U.S.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that $353.6 million of cash and cash equivalents and anticipated operating cash flow should be sufficient for ordinary-course cash needs over the next 12 months and longer term; quantitative Q3 guidance was issued separately with the earnings release.
Earlier filings 4
10-K · February 11, 2026
Entegris positions itself as a leading supplier of advanced materials and contamination-control solutions for semiconductors, organized into two reportable segments (Materials Solutions and Advanced Purity Solutions)…
10-Q · October 30, 2025
Entegris reported quarterly net sales of $807.1 million (essentially flat vs $807.7 million a year ago) and diluted EPS of $0.46 (down from $0.51 a year ago). Gross margin compressed to ~43.5% and operating income…
10-Q · May 7, 2025
Entegris reported quarter net sales of $773.2 million and diluted EPS of $0.41 for the three months ended March 29, 2025. Gross margin held at 46.1% and operating income rose to $122.3 million, but free cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.