Key Highlights

  • Ultra Clean Holdings reported record third quarter revenue of USD 759.0 million, up 18% sequentially and 49% year over year.
  • Non-GAAP earnings per diluted share were USD 1.15, while GAAP earnings per diluted share were USD 0.85.
  • Non-GAAP gross margin was 17.3%, with non-GAAP operating margin at 9.0% for the quarter.
  • The company guided fourth quarter revenue to a range of USD 800 million to USD 860 million.

Record Revenue Reflects AI-Driven Industry Expansion

Ultra Clean Holdings, Inc. (NASDAQ:UCTT) reported record third quarter revenue of USD 759.0 million, up 18% from USD 644.9 million in the second quarter and up 49% from the third quarter of 2025. Products revenue contributed USD 681.9 million, while Services revenue added USD 77.1 million. GAAP net income was USD 39.1 million, or USD 0.85 per diluted share, up from USD 8.7 million, or USD 0.19 per diluted share, in the prior quarter.

Non-GAAP net income was USD 53.2 million, or USD 1.15 per diluted share, compared with USD 32.3 million, or USD 0.70 per diluted share, in the second quarter. Non-GAAP gross margin was 17.3%, up from 16.7% sequentially, with non-GAAP operating margin at 9.0%, up from 7.0%.

Margin Expansion Reflects Operational Discipline

GAAP gross margin was 16.9%, with GAAP operating margin at 7.1% for the quarter, both improving from the prior quarter's 16.1% and 4.6%, respectively. The company said it responded with speed and agility to scale production and meet accelerating customer demand tied to the broader AI-driven expansion across the semiconductor equipment industry.

Through its UCT 3.0 initiative, the company said it is building a more agile and efficient organization positioned to anticipate customer needs, accelerate innovation, and translate industry growth into shareholder value through co-innovation with customers and development of more advanced solutions.

Fourth Quarter Guidance Points to Continued Growth

The company guided fourth quarter revenue to a range of USD 800 million to USD 860 million, which would represent continued sequential growth from the third quarter's record level. GAAP diluted earnings per share were guided to a range of USD 1.02 to USD 1.26, with non-GAAP diluted earnings per share guided to a range of USD 1.11 to USD 1.35.

Continued strength in AI-related semiconductor capital equipment spending could support the guided revenue range, while the pace of customer qualification cycles for new advanced solutions remains a variable that could affect the timing of future revenue recognition.

Growth and Margin Metrics to Track

Revenue relative to the guided USD 800 million to USD 860 million range for the fourth quarter, continued non-GAAP gross margin trends relative to the 17.3% reported this quarter, and progress under the UCT 3.0 strategic initiative are among the items the company has flagged for investors heading into the next reporting period. The magnitude of sequential growth this quarter, an 18% increase, is a pace investors may watch for sustainability as the semiconductor equipment industry's AI-driven expansion continues to unfold.