Highlights

  • Third quarter 2026 revenue was $759.0 million, with products contributing $681.9 million and services adding $77.1 million.
  • GAAP net income was $39.1 million, or $0.85 per diluted share, compared with $8.7 million in the prior quarter.
  • Fourth quarter 2026 outlook: revenue of $800 million to $860 million and GAAP diluted EPS of $1.02 to $1.26.
  • Net cash used in operating activities was $116.7 million for nine months; inventories were $723.3 million at September 25, 2026.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT) shares were trading at USD 55.06 on October 28, 2026, up 6.95%, with a relative volume at time of 3.86. The semiconductor subsystems supplier reported results for the third quarter ended September 25, 2026 on October 27, 2026, together with an outlook for the fourth quarter.

Ultra Clean Holdings is incorporated in Delaware and lists its principal executive offices in Hayward, California. The company develops and supplies subsystems, components, parts and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Its Products division offers outsourced solutions for major subassemblies and high-precision manufacturing. Its Services division offers tool chamber parts cleaning and coating and micro-contamination analytical services. The company reports two segments, Products and Services.

Third Quarter 2026 Results

Total revenue was $759.0 million for the third quarter, compared with $644.9 million in the prior quarter and $510.0 million in the third quarter of 2025. The company stated that revenue was up 18% from the second quarter and up 49% from the third quarter of 2025. Products revenue was $681.9 million and services revenue was $77.1 million.

On a GAAP basis, gross margin was 16.9%, operating margin was 7.1%, and net income was $39.1 million, or $0.85 per diluted share. In the prior quarter, gross margin was 16.1%, operating margin was 4.6%, and net income was $8.7 million, or $0.19 per diluted share.

On a non-GAAP basis, gross margin was 17.3%, operating margin was 9.0%, and net income was $53.2 million, or $1.15 per diluted share. In the prior quarter, non-GAAP gross margin was 16.7%, operating margin was 7.0%, and net income was $32.3 million, or $0.70 per diluted share.

For the nine months ended September 25, 2026, revenue was $1,937.6 million, compared with $1,547.3 million. Net income attributable to UCT was $29.9 million, or $0.65 per diluted share, compared with a net loss of $177.9 million, or $3.93 per share. The prior-year nine months included a $151.1 million goodwill impairment.

Balance Sheet, Cash Flow and Financing

Cash and cash equivalents were $270.9 million at September 25, 2026, compared with $311.8 million at December 26, 2025. Inventories were $723.3 million, compared with $390.9 million. Long-term debt was $635.1 million, compared with $467.0 million.

Net cash used in operating activities for the nine months was $116.7 million, compared with net cash provided of $57.5 million. Financing activities included $600.0 million of proceeds from convertible notes, $481.5 million of principal payments on bank borrowings, $34.0 million of net proceeds from an at-the-market offering and $40.0 million of common stock repurchases.

On the earnings call, management said it sold an additional 2.2 million shares under the at-the-market program in the first week of the fourth quarter for $169.1 million in net proceeds. It said $193 million remained of the $400 million program and that part of the proceeds repaid the outstanding revolving credit facility balance.

Fourth Quarter 2026 Outlook

Ultra Clean expects fourth quarter revenue in the range of $800 million to $860 million. It expects GAAP diluted net income per share between $1.02 and $1.26, and non-GAAP diluted net income per share between $1.11 and $1.35. The company said a reconciliation of the non-GAAP guidance is not available without unreasonable efforts.

On the call, management said the non-GAAP per share outlook assumes approximately 48.9 million diluted shares and that it plans capital expenditures of $80 million to $100 million, phased through 2027 and 2028, to add capacity for $5 billion of revenue and beyond, paced to customer demand.

CEO James Xiao said the company is pursuing a strategy called UCT 3.0 and working with customers on more advanced solutions.