Key Highlights

  • Non-GAAP EPS of USD 1.23 beat the consensus estimate of USD 1.03, while GAAP diluted EPS was USD 1.03.
  • Record net sales of USD 1,005.7 million rose 24.6% and topped the consensus estimate of USD 925.35 million.
  • Adjusted gross Margin reached 48.9%, up from 43.6% a year earlier, with adjusted EBITDA margin at 30.2%.
  • Record free Cash Flow of USD 224 million funded full repayment of the 2029 term loan.

Entegris, Inc. (NASDAQ:ENTG) reported third quarter 2026 net sales of USD 1,005.7 million, a record that sits above a consensus estimate of USD 925.35 million and 24.6% above the USD 807.1 million of a year earlier. Non-GAAP Diluted Earnings per Share were USD 1.23 against a consensus estimate of USD 1.03 and USD 0.72 a year ago. GAAP diluted earnings per share were USD 1.03 versus USD 0.46, on Net Income of USD 157.8 million compared with USD 70.5 million.

Chief Executive Officer Dave Reeder said the company is executing against rising semiconductor complexity and materials intensity, and that record revenue, margin expansion and earnings all exceeded the guidance range. Non-GAAP net income was USD 189.7 million, up 72.6%.

Segment Strength and Margin Expansion

Advanced Purity Solutions sales rose 31% to USD 604.9 million, a quarterly record, with an adjusted segment margin of 34.4%. Materials Solutions sales rose 16% to USD 404.1 million, the segment highest since the third quarter of 2023, with adjusted segment profit of USD 82.3 million. Unit driven Revenue grew about 20% in the quarter, up from roughly 6% in the first quarter, while Capital spending related businesses grew more than 35%.

GAAP gross margin was 49.7% and adjusted gross margin was 48.9%, about 530 basis points above a year ago. Adjusted Operating Margin reached 26.8% versus 21.1%, and adjusted EBITDA was USD 303.3 million. The results include USD 8.3 million of Tariff refunds under the International Emergency Economic Powers Act, which the company excluded from non-GAAP figures. Management said book to bill stays well above 1, with Backlog up more than 35% sequentially and more than double a year earlier.

Fourth Quarter Guidance and Balance Sheet

For the fourth quarter ending December 31, 2026, the company guided to sales of USD 1,025 million to USD 1,055 million, GAAP diluted EPS of USD 1.09 to USD 1.17 and non-GAAP diluted EPS of USD 1.32 to USD 1.40. Adjusted EBITDA is projected at about 30.7% to 31.2% of sales. Management cited roughly 8% wafer starts growth for 2026.

Operating cash flow was USD 266.8 million in the quarter, and the company repaid USD 200.0 million of debt, fully retiring the 2029 term loan. Long term Debt stood at USD 3,260.6 million, down from USD 3,697.6 million at year end 2025. The chief financial officer said net Leverage improved to 2.9x and is projected near 2.7x by year end.

Dates and Ratios to Follow

Entegris is scheduled to host a Capital Markets Day on November 9, 2026, where management plans to discuss its AI native strategy and long term road map. The fourth quarter sales range of USD 1,025 million to USD 1,055 million and the non-GAAP EPS range of USD 1.32 to USD 1.40 give measurable markers. Net leverage of 2.9x against the year end figure near 2.7x, and backlog growth of more than 35% sequentially, are the Balance Sheet and Demand ratios management itself highlighted.