-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
MKSI reported Q1 sales of $1.08B (+15% Y/Y), beating consensus expectations of $1.05B, with non-GAAP EPS of $2.30 (+35% Y/Y) well ahead of consensus at $2.05. Gross margin of 47.0% (+60bps Q/Q, -40bps Y/Y) and operating margin of 21.8% (+80bps Q/Q, +160bps Y/Y) demonstrated operational improvements. We continue to attribute this strength to growing AI infrastructure demand, which is increasingly benefiting MKSI across all segments where spending is expected to accelerate. Q2 guidance was well ahead of the Street, with revenue and EPS midpoints of $1.20B and $2.90 vs. consensus of $1.09B/$2.38. Semiconductor segment (43% of sales) grew 13% Y/Y, accelerating from 9% in the prior quarter, while Electronics & Packaging (30%) was up 27% and Specialty Industrial (27%) grew 8%, showing continued recovery. We expect AI infrastructure spending to accelerate into H2 2026 and 2027, with management highlighting strong Q1 bookings activity supporting this outlook.