UCTT

Ultra Clean Holdings (UCTT) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this chipmaking equipment services company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Ultra Clean Holdings, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.91 per share, which is a change of +225.0% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for Ultra Clean has increased 28.57% because one estimate has moved higher compared to no negative revisions. For the full year, the earnings estimate of $3.04 per share represents a change of +189.5% from the year-ago number. The revisions trend for the current year also appears quite promising for Ultra Clean, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 24.77%. Thanks to promising estimate revisions, Ultra Clean currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Ultra Clean shares have added 5.1% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ultra Clean Holdings, Inc. UCTT used its second-quarter call to frame demand around an AI-driven semiconductor equipment ramp. CEO James Xiao said activity strengthened across Products and Services as customers shared longer forecasts and engaged the company earlier in development cycles. That visibility accompanied results above expectations and a third-quarter outlook above second-quarter levels. Analysts pressed management on whether capacity additions, factory utilization and supply-chain preparation can support the next growth phase while margins improve. The company reported second-quarter non-GAAP earnings of 70 cents per share, beating the Zacks Consensus Estimate of 52 cents. Revenues of $644.9 million surpassed the $585.3 million consensus. Ultra Clean Holdings, Inc. price-consensus-eps-surprise-chart | Ultra Clean Holdings, Inc. Quote Xiao said AI investment is increasing both the volume and complexity of customer requirements, extending demand beyond GPU-heavy training systems to broader compute infrastructure. Xiao also said customers are providing longer planning horizons. That visibility is helping UCTT plan capacity, engineering resources, talent and supply-chain readiness around customer product road maps. Xiao described earlier customer engagement as strategically important because UCTT can support qualification, manufacturing readiness and faster production ramps before programs reach high volume. The company added 26,000 square feet of clean-room space in Malaysia and plans further expansion within existing facilities in Singapore and the Czech Republic. In the Q&A, Xiao clarified that UCTT expects capacity for a $3.5 billion annualized revenue run rate by year-end 2026, $4 billion in the first half of 2027 and $5 billion in the second half of 2028. Xiao also highlighted the first MPX Center of Excellence under the NPX initiative in Hillsboro, Ore., alongside digital upgrades using automation, analytics and AI-enabled tools to improve product transfers and operating visibility. UCTT guided third-quarter revenues to $700 million to $750 million and non-GAAP earnings to $0.83 to $1.03 per share. Higher volume lifted non-GAAP gross margin to 16.7% and operating margin to 7%. UCTT is moving toward the 17% gross-margin range through the rest of 2026 while retaining a 20% goal at a $4 billion run rate. Cash and cash equivalents fell to $255.9 million from $323.5 million in the prior quarter. Operating cash flow was negative $41.1 million after negative $33.3 million in the first quarter. Management attributed the outflow to working-capital investment, particularly inventory intended to support anticipated demand and future growth. Operating expenses rose to $62.5 million from $51.1 million, but declined to 9.7% of revenues from 11.4% as sales increased. A UBS analyst questioned whether third-quarter guidance understated growth relative to UCTT's largest customer. Xiao cited subsystem integration timing and different quarter-end dates, adding that aggregated two-quarter growth would be on par with customers or higher. A TD Cowen analyst asked about business beyond the two largest customers. Xiao said their combined revenue share fell from 64% to the high-50% range as UCTT grew with lithography customers. An Oppenheimer analyst asked about component shortages and delivery delays. Xiao said UCTT had neither in the quarter because it secured critical parts early, though double-digit sequential industry growth will keep pressure on the broader supply chain. Xiao kept the call focused on ramp readiness, earlier co-innovation and capacity preparation aligned with customer forecasts. CFO Sheri Brumm emphasized that mix, shipment location, materials and transportation costs can create quarterly margin variation. Management's operating agenda remains capacity expansion, faster product qualification and disciplined execution as customer demand scales. UCTT currently sports a Zacks Rank #1 (Strong Buy), a signal tied to favorable earnings-estimate revision trends and potential near-term outperformance. The stock has a Value Score of D, Growth Score of D, Momentum Score of F and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank stocks here. Zacks Style Scores rank A and B as the strongest grades, so UCTT's D and F readings provide weak confirmation across value, growth and momentum. The Zacks Rank can change as analysts revise estimates following the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: Record $644.9 million in Q2 2026, up from $533.7 million in the prior quarter. Products Revenue: $572.7 million in Q2, compared to $465.7 million in Q1. Services Revenue: $72.2 million in Q2, compared to $68 million in Q1. Total Gross Margin: 16.7% in Q2, up from 16.5% in Q1. Products Gross Margin: 15.1% in Q2, up from 14.6% in Q1. Services Gross Margin: 28.9% in Q2, down from 30% in Q1. Operating Expense: $62.5 million in Q2, up from $51.1 million in Q1; 9.7% of revenue versus 11.4% last quarter. Total Operating Margin: 7% in Q2, up from 5.1% in Q1. Products Operating Margin: 6.5% in Q2, up from 4.2% in Q1. Services Operating Margin: 11.2% in Q2, down from 11.5% in Q1. Net Income: $32.3 million in Q2, up from $14.5 million in Q1. Earnings Per Share (EPS): $0.70 in Q2, up from $0.31 in Q1. Cash and Cash Equivalents: $255.9 million at end of Q2, down from $323.5 million at end of Q1. Operating Cash Flow: Negative $41.1 million in Q2, compared to negative $33.3 million in Q1. Q3 2026 Guidance: Total revenue projected between $700 million and $750 million; EPS in the range of $0.83 to $1.03. Warning! GuruFocus has detected 7 Warning Signs with UCTT. Is UCTT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record total revenue of $644.9 million in Q2 2026, up significantly from $533.7 million in the prior quarter. Strong demand across both products and services, driven by AI-related investment in semiconductor capital equipment. Expansion of clean room capacity in Malaysia, Singapore, and Czech Republic to support a $4 billion annualized revenue run rate by mid-2027. Improved gross margin to 16.7% from 16.5% in Q1, driven by higher volumes and factory efficiencies. Guidance for Q3 2026 projects revenue between $700 million and $750 million and EPS of $0.83 to $1.03, indicating continued growth. Operating cash flow was negative $41.1 million in Q2, reflecting strategic investments in working capital, particularly inventory. Services gross margin declined to 28.9% from 30% in Q1, indicating some margin pressure in that segment. Revenue growth is subject to timing gaps with customers, which can cause quarterly fluctuations. The company faces potential supply chain pressures due to double-digit industry growth, requiring proactive management. Gross margin remains sensitive to volume, mix, manufacturing region, and material costs, leading to quarterly variability. Q: Your Q3 guidance was strong but could have been higher given your largest customer's systems growth. Is the gap due to timing, inventory, or conservatism?A: James Xiao (CEO) explained that the gap is a combination of timing and customer-specific factors. There is a natural lag between when UCT ships subsystems and when customers integrate them into their systems for revenue recognition. Additionally, some customers have different quarter-end dates. However, over a two-quarter aggregate, UCT's revenue growth is on par with or higher than its customers' growth. Q: Given that your customers are at full capacity, is there an opportunity for them to use UCT as overflow for work they originally planned to do in-house?A: James Xiao (CEO) confirmed this is a significant upside opportunity. When customers are constrained by internal capacity, they tend to focus on final test and integration, outsourcing more subsystem work to partners like UCT. Historically, this dynamic has allowed UCT to outgrow its customers on the product side during upturns. Q: Can you provide more detail on the timeline for your $4 billion and $5 billion revenue run-rate capacity plans?A: James Xiao (CEO) outlined a phased approach. UCT will have $3.5 billion in capacity ready by the end of 2026 and will hit the $4 billion run-rate capacity in the first half of 2027, supported by recent cleanroom expansions in Malaysia, Singapore, and the Czech Republic. For the $5 billion run rate, the company is evaluating new expansion plans in Southeast Asia and expects to reach that capacity in the second half of 2028. Q: What are your thoughts on the long-term margin model, given the goal of 20% gross margin at a $4 billion run rate?A: Sheri Brumm (Outgoing CFO) stated that incremental margins should continue to improve as factory utilization increases. The company is moving toward a 17% gross margin range through the rest of 2026 and still targets 20% gross margin at the $4 billion revenue run rate during 2027. A new long-term model will be provided at a later date. Q: Your customer base beyond the top two is growing. What is driving this diversification, and how will it evolve?A: James Xiao (CEO) noted that revenue from the top two customers has decreased from 64% to the high 50s, demonstrating successful diversification to reduce volatility. While WFE growth in 2026-2027 is more etch and deposition-intensive, UCT is also growing with EUV customers as adoption increases in leading-edge foundry, logic, and memory, though the percentage from non-etch/deposition segments may not grow significantly in the near term. Q: Did UCT experience any component shortages or delivery pushouts in Q2, as a competitor reported?A: James Xiao (CEO) stated that UCT did not face similar issues, thanks to its proactive "ramp readiness" campaign initiated several quarters ago, which secured critical components early. However, he cautioned that the industry's double-digit sequential growth will continue to pressure the supply chain, requiring active and proactive management to mitigate potential disruptions. Q: What informs your outlook for WFE to exceed $200 billion by mid-2027 and your decision to add capacity for 2028?A: James Xiao (CEO) explained that the industry has a good chance to exceed $200 billion WFE in 2027, with estimates ranging from $190 billion to $220 billion. UCT is preparing for the bull case, believing that sufficient, ready capacity will become a competitive advantage in this upcycle. Q: As wafer starts accelerate, will the services business grow at the same pace as products, or potentially higher, exiting 2027?A: James Xiao (CEO) confirmed that services will grow at a double-digit rate in 2026 and 2027. However, there is a timing lag due to OEM extended service agreements. The acceleration in services growth is expected after the ramp of advanced factories in the US, improved utilization at a major US customer, and the leading-edge ramp in Korea and Taiwan. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ultra Clean Holdings (UCTT) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +34.62%. A quarter ago, it was expected that this chipmaking equipment services company would post earnings of $0.27 per share when it actually produced earnings of $0.31, delivering a surprise of +14.81%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ultra Clean, which belongs to the Zacks Electronics - Manufacturing Machinery industry, posted revenues of $644.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.18%. This compares to year-ago revenues of $518.8 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ultra Clean shares have added about 228.9% since the beginning of the year versus the S&P 500's gain of 9.4%. While Ultra Clean has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ultra Clean was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.72 on $663.53 million in revenues for the coming quarter and $2.46 on $2.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Machinery is currently in the top 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Axcelis Technologies (ACLS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This semiconductor services company is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -20.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Axcelis Technologies' revenues are expected to be $205.1 million, up 5.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ultra Clean Holdings, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose to $644.9 million from $533.7 million in Q1, while net income increased to $32.3 million, or $0.70 per share. Gross margin improved to 16.7% as higher volumes drove factory efficiencies. AI-driven demand is strengthening the outlook: Ultra Clean expects third-quarter revenue of $700 million to $750 million and EPS of $0.83 to $1.30, supported by semiconductor capacity expansion and AI-related infrastructure investment. Capacity expansion remains a priority: The company added clean-room space in Malaysia and plans further expansion, targeting a $3.5 billion annualized revenue capacity by the end of 2026 and $4 billion in the first half of 2027. 5 Small-Cap Stocks to Watch in 2026 as Investors Rotate Out of Big Tech Ultra Clean (NASDAQ:UCTT) reported record second-quarter revenue as demand increased across its Products and Services businesses, with management pointing to AI-driven semiconductor investment and customer capacity expansions as key drivers of activity. Chief Executive Officer James Xiao said the semiconductor capital-equipment environment is being reshaped by investment in artificial intelligence infrastructure. He said demand is extending beyond GPU-intensive training systems toward inference workloads that require greater CPU compute volumes, increasing the need for semiconductor manufacturing capacity and system complexity. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now 3 Small-Cap Leaders Poised for Significant Growth “Every layer of semiconductor manufacturing must scale to support this next wave of infrastructure investment and AI chip demand expansion beyond GPU and HBM,” Xiao said. He added that customers are providing longer planning horizons, allowing Ultra Clean to make decisions on capacity, supply-chain readiness, engineering resources and talent investment. All financial figures discussed on the call were presented on a non-GAAP basis. Ultra Clean posted total revenue of $644.9 million in the second quarter, up from $533.7 million in the first quarter. Products revenue rose to $572.7 million from $465.7 million, while Services revenue increased to $72.2 million from $68 million. → MarketBeat Week in Review – 07/27- 07/31 Total gross margin was 16.7%, compared with 16.5% in the prior quarter. Products gross margin improved to 15.1% from 14.6%, while Services gross margin declined to 28.9% from 30%. Chief Financial Officer Sheri Savage said gross-margin improvement was primarily driven by higher volumes and related factory efficiencies, though margins remain subject to changes in volume, product mix, manufacturing region, material costs and transportation costs. Operating expenses were $62.5 million, compared with $61.1 million in the first quarter, but declined as a percentage of revenue to 9.7% from 11.4%. Total operating margin rose to 7% from 5.1%. Net income was $32.3 million, or $0.70 per share based on 46 million shares outstanding, compared with net income of $14.5 million, or $0.31 per share, in the prior quarter. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Cash and cash equivalents totaled $255.9 million at quarter-end, down from $323.5 million in the prior quarter. Operating cash flow was negative $41.1 million, compared with negative $33.3 million in the first quarter. Savage said the year-to-date cash outflow reflected working-capital investment, particularly inventory intended to support anticipated demand. For the third quarter, Ultra Clean projected total revenue of $700 million to $750 million and earnings per share of $0.83 to $1.30. Management said it is expanding capacity under its UCT 3.0 strategy. The company recently added 26,000 square feet of clean-room space at its Malaysia facility and plans further capacity additions within its existing Singapore and Czech Republic footprints. Xiao said the company expects to have capacity for a $3.5 billion annualized revenue run rate by the end of 2026 and a $4 billion run rate during the first half of 2027. The company believes that capacity would support a wafer-fab-equipment market run rate of approximately $200 billion. Ultra Clean is also evaluating additional expansion, including potential greenfield opportunities in Southeast Asia, to support a $5 billion annual revenue run rate. Xiao said the company’s previously communicated timeline anticipates reaching beyond $4 billion of capacity in the first half of 2028 and attaining a $5 billion run rate in the second half of that year. The company has launched its first NPX Center of Excellence in Hillsboro, Oregon. Xiao said the center is intended to bring Ultra Clean into customer product-development cycles earlier, accelerate product qualification and improve transitions from development to high-volume production. During the question-and-answer session, Xiao said differences between Ultra Clean’s revenue timing and that of certain customers can reflect the time needed for customers to integrate the company’s subsystems into their own systems, as well as differing quarter-end schedules. Over a two-quarter period, he said Ultra Clean’s revenue growth has been in line with or above customer growth. Xiao also said customers facing internal capacity constraints may increasingly outsource subsystem manufacturing to partners such as Ultra Clean while focusing their own resources on final testing and integration. He said this dynamic has historically created opportunities for Ultra Clean’s Products business to outgrow the market during upcycles. Management said its largest two customers represented a reduced percentage of revenue, falling from 64% to the high-50% range, as the company expanded business with smaller customers. Xiao said Ultra Clean expects Services to grow at a double-digit rate in 2026 and 2027, with acceleration expected after factory ramps in the U.S., Korea and Taiwan. On supply chain conditions, Xiao said Ultra Clean did not experience component shortages or delivery pushouts in the second quarter. He attributed that performance to an internal ramp-readiness effort that began earlier, though he said continued double-digit quarterly industry growth could place pressure on supply chains. Savage said the company continues to target a 20% gross margin at a $4 billion revenue run rate, with the goal expected to be pursued during 2027. She said Ultra Clean expects gross margins to move toward 17% through the remainder of 2026 as factory utilization increases. The call was Savage’s final earnings call as Ultra Clean’s CFO following 17 years with the company. Xiao thanked her for helping guide the company through periods of growth and transformation. Mike Keogh is set to become CFO on Aug. 5, according to the company. Ultra Clean Holdings, Inc is a global supplier of critical consumables and process tools for the semiconductor manufacturing industry. The company specializes in precision parts cleaning, chemical–mechanical planarization (CMP) slurries, surface conditioning pads, and specialty components used in wafer fabrication and advanced packaging. Ultra Clean also provides assembly and test hardware, tooling, and automated modules designed to support complex front-end and back-end processes in semiconductor fabs. Ultra Clean's product portfolio encompasses a range of cleaning systems and consumables aimed at particle and film removal, as well as CMP slurries and pads that are engineered for uniform material removal and planarization. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ultra Clean Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

HAYWARD, Calif., Aug. 3, 2026 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 26, 2026. "UCT delivered second quarter results above the top end of our guided range reflecting strong operational execution and increasing customer demand," said James Xiao, CEO. "The long-term outlook for semiconductor manufacturing remains compelling as AI continues to drive investment across the industry. Our priority is executing UCT 3.0 by expanding our global manufacturing capacity, enhancing engineering and operational capabilities, and accelerating digital transformation. Together, these initiatives position us to support our customers with greater speed, agility, and scale while delivering sustainable, profitable growth and creating long-term value for our shareholders." Second Quarter 2026 GAAP Financial ResultsTotal revenue was $644.9 million. Products contributed $572.7 million and Services added $72.2 million. Total gross margin was 16.1%, operating margin was 4.6%, and net income was $8.7 million or $0.19 per diluted share. This compares to total revenue of $533.7 million, gross margin of 15.8%, operating margin of 2.1%, and net loss of $(17.9) million or $(0.40) per diluted share, in the prior quarter. Second Quarter 2026 Non-GAAP Financial ResultsOn a non-GAAP basis, gross margin was 16.7%, operating margin was 7.0%, and net income was $32.3 million or $0.70 per diluted share. This compares to gross margin of 16.5%, operating margin of 5.1%, and net income of $14.5 million or $0.31 per diluted share in the prior quarter. Third Quarter 2026 OutlookThe Company expects revenue in the range of $700 million to $750 million. The Company expects GAAP diluted net income per share to be between $0.67 and $0.87 and non-GAAP diluted net income per share to be between $0.83 and $1.03. Conference CallThe call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 68934#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/. About Ultra Clean Holdings, Inc. Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com. Use of Non-GAAP MeasuresIn addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release. The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, and the tax effects of the foregoing adjustments. A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information. Safe Harbor Statement The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our annual report on Form 10-K for the year ended December 26, 2025, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law. Contact:Rhonda BennettoSVP Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/ultra-clean-reports-second-quarter-2026-financial-results-302841520.html

Ultra Clean Holdings UCTT is set to release its second-quarter 2026 results on Aug. 3.UCTT expects second-quarter 2026 revenues between $565 million and $605 million. On a non-GAAP basis, earnings are expected in the 44-60 cents per share range. The Zacks Consensus Estimate for Ultra Clean’s second-quarter revenues is pegged at $585.3 million, suggesting year-over-year growth of 12.82%. The consensus mark for second-quarter 2026 earnings is pegged at 52 cents per share, unchanged over the past 30 days, and indicates growth of 92.59% on a year-over-year basis. Image Source: Zacks Investment Research UCTT beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, missed once and was in line in the remaining one, with the average surprise being 6.78%. Ultra Clean Holdings, Inc. price-eps-surprise | Ultra Clean Holdings, Inc. Quote Let’s see how things have shaped up for the upcoming earnings announcement. Ultra Clean’s second-quarter 2026 results are expected to have benefited from strengthening demand across the semiconductor equipment market. The company expected nearly double-digit sequential growth, supported by accelerated investments in AI-driven computing infrastructure. Growing investments in leading-edge foundry logic, high-bandwidth memory (HBM) and advanced packaging are likely to have boosted demand for UCTT’s Products segment. These applications require greater deposition, etch and removal intensity, increasing demand for the company’s gas delivery systems, chemical delivery modules, precision components and other critical semiconductor equipment subsystems. The Services segment is expected to have benefited from increasing wafer volumes, higher tool utilization and expanding fab activity among integrated device manufacturers and foundries. UCTT’s cleaning, coating and micro-contamination analysis services are closely tied to wafer starts, making the business a beneficiary of improving semiconductor production levels. UCTT’s ramp-readiness initiatives and available manufacturing capacity are also likely to have supported the to-be-reported quarter’s results. Inventory increased sharply during the first quarter as UCTT prepared to meet near-term customer requirements, which is expected to have helped it respond to rising second-quarter orders and delivery schedules. Higher production volumes and improved factory utilization are expected to have aided profitability. Management anticipated a slight sequential improvement in second-quarter gross margin, driven by operating leverage and manufacturing efficiencies. Ultra Clean shares have surged 228.6% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 6.9%. The company’s shares have underperformed Ichor Holdings ICHR but outperformed MKS MKSI and Entegris ENTG, YTD. Shares of Ichor Holdings, MKS and Entegris have appreciated 306.8%, 83.5% and 39%, respectively. Image Source: Zacks Investment Research The Ultra Clean stock is not so cheap, as its Value Score of D suggests a stretched valuation at this moment.In terms of the forward 12-month price/earnings, UCTT is currently trading at 21.4X, higher than the sector’s 20.01X and MKS’ 20.97X but lower than Ichor’s 34.68X and Entegris’ 27.95X. Image Source: Zacks Investment Research UCTT is well positioned to benefit from a multi-year expansion in wafer-fab equipment spending driven by generative AI, agentic AI, physical AI and cloud infrastructure. These trends are increasing demand for leading-edge logic, HBM and advanced packaging capacity. More complex device architectures, including gate-all-around transistors and backside power delivery, require additional processing steps and higher deposition and etch intensity, expanding the addressable market for UCTT’s subsystems and components.The company’s Services business offers another long-term growth opportunity. As new fabs begin production and installed equipment utilization rises, increasing wafer starts should drive recurring demand for chamber-part cleaning, recoating and contamination-analysis services. Ultra Clean’s MPX strategy, encompassing new product introduction, development and transition, is expected to strengthen customer engagement and support market-share gains. UCTT is upgrading its systems, processes and data infrastructure with AI-compatible tools to improve production visibility, shorten cycle times and increase productivity. Combined with available global capacity, these initiatives could drive stronger operating leverage and margin expansion as revenues move toward the company’s long-term $4-billion target.These factors are expected to help Ultra Clean face headwinds including cyclicality of the semiconductor capital-equipment industry, geopolitical tensions, export restrictions and the complexity of operating across the United States, Asia, Europe and the Middle East. Moreover, Ultra Clean’s efforts to diversify its customer base, increase proprietary products and expand manufacturing capacity underscore the competitive pressures from companies such as Ichor, MKS and Entegris. Ichor remains UCTT’s closest direct competitor in gas and fluid delivery subsystems for semiconductor capital equipment. MKS competes through one of the industry’s broadest portfolios spanning vacuum technology, RF power, plasma solutions, optics, lasers, motion control, process control and advanced packaging equipment. Entegris competes with UCTT by supplying highly specialized contamination-control materials, filtration, fluid management and advanced process materials that become increasingly critical at leading-edge technology nodes. Ultra Clean appears well positioned heading into its second-quarter 2026 results, supported by improving semiconductor equipment demand, AI-driven investments and rising wafer-fab activity. Its expanding exposure to leading-edge logic, HBM and advanced packaging, coupled with recurring services revenues and operational efficiency initiatives, should support long-term growth. However, investors should remain mindful of its premium valuation, the cyclical nature of semiconductor capital spending, geopolitical uncertainties and intense competition from Ichor, MKS and Entegris. With expectations already elevated following the stock’s sharp rally, Ultra Clean will need to deliver strong execution and demonstrate sustained margin expansion to justify further upside.Ultra Clean currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report MKS Inc. (MKSI) : Free Stock Analysis Report Entegris, Inc. (ENTG) : Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Rewey Asset Management, an investment management firm, released its “RAM Smid Composite” investor letter for the second quarter of 2026. A copy of the letter can be downloaded here. RAM Smid Composite gained 20.06% in the second quarter of 2026, outperforming the Russell 2500 Value Total Return Index’s 18.50% return, while year to date performance reached 31.15% versus 24.16% for the benchmark. The firm views the Russell 2500 Value’s outperformance of the S&P 500’s 15.20% and the Magnificent 7’s 11.7% gains as evidence of a continued rotation toward undervalued small and smid cap stocks. Economic growth moderated after first quarter GDP was revised. Capital markets remained strong, with IPOs raising $104 billion across 48 deals. In addition, please check the Composite’s top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, Rewey Asset Management highlighted Ultra Clean Holdings, Inc. (NASDAQ:UCTT). Ultra Clean Holdings, Inc. NASDAQ:(UCTT) develops and supplies critical subsystems, components and parts, and cleaning and analytical services for the semiconductor industry. On July 22, 2026, Ultra Clean Holdings, Inc. (NASDAQ:UCTT) closed at $101.46 per share. One-month return of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) was -17.80% and its shares gained 319.14% over the past 52 weeks. Ultra Clean Holdings, Inc. NASDAQ:(UCTT) has a market capitalization of $4.55 billion with a 52-week trading range between $21.28 - $144.22. Rewey Asset Management stated the following regarding Ultra Clean Holdings, Inc. (NASDAQ:UCTT) in its Q2 2026 investor letter: Ultra Clean Holdings, Inc. (UCTT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held (UCTT) at the end of the first quarter which was 22 in the previous quarter. While we acknowledge the potential of Ultra Clean Holdings, Inc. (UCTT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Ultra Clean Holdings, Inc. NASDAQ:(UCTT) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.