Ultra Clean (NASDAQ:UCTT) Issues Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Ultra Clean (NASDAQ:UCTT) released its quarterly earnings data on Monday. The semiconductor company reported $0.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.17, Briefing.com reports. Ultra Clean had a negative net margin of 1.07% and a positive return on equity of 6.90%. The company had revenue of $644.90 million during the quarter, compared to analysts’ expectations of $587.65 million. During the same quarter in the previous year, the company earned $0.27 earnings per share. The firm’s revenue for the quarter was up 24.3% on a year-over-year basis. Ultra Clean updated its Q3 2026 guidance to 0.830-1.030 EPS.

Here are the key takeaways from Ultra Clean’s conference call:

• Q2 revenue reached a record $644.9 million, up from $533.7 million in Q1, while EPS rose to $0.70 from $0.31. Higher volumes improved total gross margin to 16.7% and operating margin to 7.0%.
• UCT expects Q3 revenue of $700 million to $750 million, reflecting continued demand across its Products and Services businesses and momentum from AI-related semiconductor investment.
• The company added 26,000 square feet of clean-room capacity in Malaysia and plans further expansions in Singapore and the Czech Republic, targeting a $4 billion annualized revenue capacity by mid-2027 and $5 billion by the second half of 2028.
• Management sees potential for UCT to outgrow the market as customers outsource more subsystem production amid constrained internal capacity, while customer concentration improved as the top two customers fell from 64% to the high-50% range of revenue.
• Cash and equivalents declined to $255.9 million, with operating cash flow negative $41.1 million, as the company invested heavily in inventory and working capital to prepare for anticipated demand. Management also warned that continued industry growth could create supply-chain component shortages and delivery pressure.

Ultra Clean Stock Down 5.2%

Shares of UCTT opened at $84.54 on Wednesday. The stock has a 50 day moving average price of $100.57 and a 200 day moving average price of $76.81. Ultra Clean has a one year low of $21.49 and a one year high of $144.22. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.72 and a current ratio of 3.07. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of -19.71, a PEG ratio of 1.19 and a beta of 1.88.

Insider Transactions at Ultra Clean

In other news, insider Jeffrey L. Mckibben sold 4,205 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.00, for a total value of $365,835.00. Following the completion of the sale, the insider directly owned 11,349 shares in the company, valued at $987,363. This represents a 27.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Paul Yoonku Cho sold 2,000 shares of the firm’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $86.89, for a total transaction of $173,780.00. Following the completion of the transaction, the general counsel directly owned 15,844 shares in the company, valued at approximately $1,376,685.16. This represents a 11.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 48,034 shares of company stock worth $4,296,414. Company insiders own 1.80% of the company’s stock.

Institutional Trading of Ultra Clean

A number of hedge funds have recently bought and sold shares of the business. Quadrant Capital Group LLC lifted its stake in Ultra Clean by 40.3% in the 4th quarter. Quadrant Capital Group LLC now owns 989 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 284 shares in the last quarter. Smartleaf Asset Management LLC grew its position in shares of Ultra Clean by 472.9% in the second quarter. Smartleaf Asset Management LLC now owns 1,713 shares of the semiconductor company’s stock valued at $39,000 after purchasing an additional 1,414 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of Ultra Clean in the third quarter valued at approximately $45,000. State of Wyoming increased its holdings in shares of Ultra Clean by 45.7% in the fourth quarter. State of Wyoming now owns 1,825 shares of the semiconductor company’s stock valued at $46,000 after purchasing an additional 572 shares during the last quarter. Finally, Wexford Capital LP purchased a new position in Ultra Clean during the third quarter worth approximately $64,000. Institutional investors and hedge funds own 96.06% of the company’s stock.

More Ultra Clean News

Here are the key news stories impacting Ultra Clean this week:

• Positive Sentiment: Q2 results exceeded expectations. Ultra Clean reported adjusted EPS of $0.70, up from $0.27 a year earlier and above the $0.53 consensus estimate. Revenue increased 24.3% year over year to $644.9 million, also surpassing forecasts. Ultra Clean Q2 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management issued an upbeat Q3 outlook. Revenue guidance of $700 million to $750 million and EPS guidance of $0.83 to $1.03 were both above consensus estimates of $667.6 million and $0.67, respectively. Ultra Clean Reports Second Quarter 2026 Financial Results
• Positive Sentiment: AI-related semiconductor demand is supporting growth. The earnings call highlighted stronger AI-driven wafer-fabrication investment, improving visibility and capacity expansion to meet demand. Ultra Clean Q2 Earnings Call Centers on AI Demand and Capacity
• Positive Sentiment: Analysts raised their valuation targets. Needham lifted its target to $125 and maintained a Buy rating, while UBS analyst Timothy Arcuri reaffirmed a Buy rating and raised his target to $150, citing growth potential and a wafer-fabrication-equipment upcycle. Needham Raises Ultra Clean Price Target
• Negative Sentiment: Cash generation and reported profitability were weaker. A third-party report cited $8.7 million in net income, $0.19 diluted EPS and negative operating cash flow of $41.1 million, creating uncertainty around earnings quality despite the company’s reported adjusted EPS beat.
• Negative Sentiment: Insider selling may weigh on sentiment. Executives and directors made no reported open-market purchases while selling shares during the past six months, according to the cited data.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on UCTT. UBS Group restated a “buy” rating on shares of Ultra Clean in a research note on Tuesday. Oppenheimer raised their price objective on Ultra Clean from $115.00 to $150.00 and gave the company an “outperform” rating in a report on Tuesday. Zacks Research upgraded Ultra Clean from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 25th. TD Cowen boosted their price objective on Ultra Clean from $130.00 to $140.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Needham & Company LLC increased their target price on Ultra Clean from $92.00 to $125.00 and gave the company a “buy” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $129.00.

About Ultra Clean

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.