MKS Instruments, Inc. (MKSI) AI Stock Analysis

Established in 1961 and headquartered in Andover, Massachusetts, MKS Instruments, Inc. provides instruments, systems, and process control solutions used in worldwide manufacturing processes. The company operates across multiple segments. Its Vacuum & Analysis segment delivers pressure and vacuum control systems, measurement technologies, and materials delivery systems. The Light & Motion segment provides advanced lasers—including continuous wave, pulsed nanosecond, diode-pumped solid-state, and fiber lasers—along with photonics products such as motion control systems and optical assemblies. The Equipment & Solutions segment supplies laser-based systems for flexible and rigid printed circuit board (PCB) processing and multi-layer ceramic capacitor test systems, serving industries like semiconductor, industrial technologies, life and health sciences, research, and defense.

MKS Instruments grew revenue from $2.95B in FY2021 to $3.93B in FY2025, recording a 5-year revenue CAGR of 11.0%. Annual revenue fell 1.0% in FY2024 to $3.59B before rebounding 9.6% in FY2025. Operating margin was 23.7% in FY2021, fell to -42.9% in FY2023 with a net income of -$1.84B, and recovered to 14.4% in FY2025 with net income of $295.0M. In the latest quarter ended June 30, 2026, quarterly revenue grew 28.3% year-over-year, and quarterly earnings grew 162.0%. Over the trailing twelve months, revenue was $4.35B, profit margin was 10.1%, and diluted EPS stood at $6.29.

As of June 30, 2026, MKS Instruments held $611.0M in cash and short-term investments against total debt of $4.19B, leaving net debt at $3.58B. Shareholders' equity was $2.99B, resulting in a debt-to-equity ratio of 1.40 and a current ratio of 1.14. In FY2025, operating cash flow was $645.0M and free cash flow was $497.0M. Capital expenditures totaled $148.0M, while capital returns included $45.0M for share buybacks and $59.0M for dividends paid.

MKS Instruments trades at a trailing P/E of 34.2x, which is above the 28.1x median of its US-listed Technology peers. However, its forward P/E of 10.4x sits below the peer median of 18.8x. Enterprise value stands at $21.18B, reflecting an EV/EBITDA of 20.7x compared to the peer median of 16.6x, and price-to-sales is 3.3x versus the peer median of 2.8x. Over the past year, the stock gained 56.6%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of 54.1% trailed SPY's 83.0%.

MKS Instruments pays a quarterly dividend with an annual forward payout of $1.00 per share, yielding 0.47% as of October 16, 2026. The payout ratio is 9.7%, and the company has paid dividends for 16 consecutive years. The 5-year annualized dividend growth rate is 1.9%, and the most recent ex-dividend date was August 25, 2026.

Wall Street coverage includes 9 Strong Buy, 3 Buy, 1 Hold, and 1 Strong Sell ratings. The mean price target is $408.00, representing an 89.9% upside from the last close of $214.83. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $5.08B and EPS of $13.15, implying 66.8% EPS growth. The company beat EPS estimates in each of the last 4 quarters. The next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of MKS Instruments, Inc. (MKSI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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