ENTEGRIS (ENTG)·Q4 2025 Earnings Summary
Entegris Beats Q4 Estimates, Stock Surges 8% on AI Demand and 2nm Tailwinds
February 10, 2026 · by Fintool AI Agent
Entegris (NASDAQ: ENTG) delivered a solid Q4 2025, beating both revenue and earnings estimates while guiding above expectations for Q1 2026. The semiconductor materials supplier reported Non-GAAP EPS of $0.70 versus consensus of $0.67 (+4.5%) and revenue of $824M versus $811M expected (+1.6%). The stock surged 8.6% on earnings day, signaling investor confidence in the company's positioning for AI-driven semiconductor demand and improving free cash flow trajectory.
Did Entegris Beat Earnings?
Yes — Entegris beat on both lines. Q4 results came in at or above the high end of company guidance across all key metrics.
CEO Dave Reeder emphasized the execution: "Our solid fourth quarter results demonstrate disciplined execution and a consistent focus on delivering on our commitments."
Full Year 2025 Highlights:
- Total revenue approximately flat YoY (excluding divestitures)
- Unit-driven revenue grew ~2%, in line with market wafer starts
- CapEx-driven revenue declined 7%, consistent with industry fab construction decline
- Free cash flow margin reached 12.7%, up ~300bps YoY
Ask Fintool AI AgentWhat Did Management Guide?
Q1 2026 guidance came in above the Street. Management projected continued momentum with improving cash flow and balance sheet strength.
The midpoint guidance represents ~4% revenue growth YoY at midpoint. Management also provided a Q2 preview: sequential growth of 1%-3% from Q1, in line with normal seasonality.
FY2026 Modeling Items:
- Net interest expense: ~$190M
- Non-GAAP tax rate: ~15%
- Diluted shares: ~152M (Q1), ~153M (full year)
- CapEx: $250M (down from $299M in FY2025)
- Depreciation: ~$150M (reflects useful life assessment)
What's the 2026 Market Outlook?
CEO Dave Reeder provided detailed color on end-market expectations during the Q&A.
Industry MSI (Wafer Starts): Mid-single digits growth expected in 2026
CapEx Dynamics (25% of ENTG Revenue):
- Fab Construction (2/3 of CapEx revenue): Modestly up in 2026 after high single-digit decline in 2025, with meaningful acceleration expected in 2027
- WFE (1/3 of CapEx revenue): Strong growth expected in 2026
When asked about outperformance potential, CEO Reeder noted: "We typically get the most outperformance when we have node transitions, because that drives additional content per wafer... While both logic and NAND node transitions look solid, we don't really control the timing and pace of that."
How Did the Stock React?
ENTG surged 8.6% on February 6 from $112.67 to $122.37, one of the strongest post-earnings moves for the stock in recent quarters. The stock has held these gains, reflecting:
- Clean beat on both revenue and EPS
- Guidance above expectations with Q2 visibility provided
- Balance sheet improvement — paid down $300M of term loan in FY2025
- Free cash flow margin at 12.7% — nearly 300bps improvement YoY
8-Quarter Track Record
Entegris has beaten EPS estimates in 5 of the last 8 quarters, with an improving trend:
What Changed From Last Quarter?
Sequential Improvements (Q4 vs Q3 2025)
- Revenue: Up 2% sequentially, driven by both segments
- Gross margin: Stabilized and at trough, now improving from volume leverage
- Materials Solutions: Up 4% sequentially with strong margin improvement from production volumes
- Advanced Purity Solutions: Up 1% sequentially, liquid filtration at record quarter
Year-over-Year Comparison (Q4 2025 vs Q4 2024)
The YoY declines reflect headwinds from fab construction CapEx decline and manufacturing site ramp costs, but management called a gross margin trough in Q3 2025 and sees sequential improvement ahead.
Segment Breakdown
Materials Solutions (MS) — 44% of Revenue
Key Drivers: Sales flat YoY, up 4% sequentially. Growth driven primarily by advanced deposition materials, supported by demand for moly deposition within NAND. Strong sequential margin increase driven by increased production volumes and product mix.
Advanced Purity Solutions (APS) — 56% of Revenue
Key Drivers: YoY decline driven by fluid handling and FOUPs, partially offset by liquid filtration which had another record quarter. Margin pressure from Taiwan and Colorado manufacturing site ramp costs.
Revenue Mix by End Market
Advanced Packaging: Revenue of ~$100M in 2025, expected to grow nicely in 2026. New product lines sampling, with more expected in 2027 and beyond.
Why Is NAND Benefit Delayed?
Analyst Charles Shi asked why NAND isn't inflecting for Entegris yet despite improving pricing and sentiment for customers. CEO Reeder explained the dynamics:
"We think incremental wafer starts for NAND will remain measured because what we're actually starting to see is we're starting to see some node transitions on NAND, where you get a premium, or the NAND producers get a premium pricing for bit density."
The Trade-off:
- NAND producers are prioritizing layer count transitions (250→300 layers) over wafer start growth
- Layer transitions absorb existing capacity with premium pricing
- Entegris benefits from double-digit content per wafer gains from higher layers
- But full wafer starts would provide even more benefit
Current NAND Utilization: ~85%, down from 2022 peak
"We're relatively indifferent on whether you're absorbing that capacity on an incremental layer basis or on a wafer basis... The reality is we would probably get slightly more incremental benefit from a full wafer start, but we do get benefit from both." — CEO Reeder
Ask Fintool AI AgentWhat's the China Strategy?
China remains a key market representing ~21% of sales in both 2024 and 2025. Management provided detailed color on the local-for-local manufacturing strategy during Q&A.
Local-for-Local Progress:
- Q1 2026: ~85% of China revenue supplied from Asia facilities
- FY2026 Target: Increasing through the year, potentially reaching ~90%+
When asked about Chinese competition, CEO Reeder emphasized: "When we look at the China market, we think the fundamentals of the China market are very similar to the rest of the world. In other words, they care about yield and performance... Our biggest obstacle in China is being able to guarantee to those customers that we can assure supply."
Once supply is guaranteed through local manufacturing, "we then get to compete in that market like we do around the world, and when we can compete fairly in those markets, we tend to do pretty well."
Key Management Quotes
On AI-Driven Growth:
"Today, more than 60% of Entegris' revenue comes from advanced logic and advanced memory. AI is, of course, not the majority of these advanced nodes, but it is an important part and the most significant growth driver." — CEO Dave Reeder
On Strategic Priorities:
"First is deepening customer intimacy... Success in this area translates into securing key positions of record, PORs, in new nodes, which will expand our served available market and increase both revenue and content per wafer." — CEO Dave Reeder
On Manufacturing Capacity:
"The additional manufacturing capacity we've built, combined with our current manufacturing base, enables us to deliver significantly more than $1 billion in incremental revenue with limited further investment." — CEO Dave Reeder
On Free Cash Flow Commitment:
"Underscoring our commitment, free cash flow is now part of our short-term and long-term incentive plans." — CEO Dave Reeder
Balance Sheet & Capital Allocation
The balance sheet improved meaningfully in FY2025:
FY2026 CapEx Outlook: $250M, down meaningfully from 2025. Longer-term, management expects CapEx to return to historical levels of 7%-8% of sales.
Facility Rationalization:
- Exited Chester, Pennsylvania facility in Q4 2025
- Expect to rationalize at least one additional facility in H1 2026
"The additional manufacturing capacity we've built, combined with our current manufacturing base, enables us to deliver significantly more than $1 billion in incremental revenue with limited further investment." — CEO Reeder
Risks & Concerns
- CFO Transition — Linda LaGorga is departing; this was her final earnings call. Management rescheduled Capital Markets Day from May to Fall 2026 due to the transition.
- Mainstream logic uncertainty — "The bulk of MSI for logic... sits in mainstream, and I think that's the part that people are looking at and wondering what's the rate and pace of growth."
- Memory shortage impact — Ongoing memory shortages may weigh on industry's ability to supply some mainstream end markets. Flagged as potential issue for H2 2026.
- Fab CapEx timing volatility — "That's the piece that we're really watching right now, and it's moved pretty significantly month to month." — CEO Reeder on fab construction CapEx
- Geopolitical exposure — Significant manufacturing footprint in Taiwan and China creates trade policy risk; local-for-local strategy is the mitigation
Forward Catalysts
- 2nm logic ramp — "As 2 nanometer significantly ramps wafer output this year, this node provides an additional tailwind as it carries both higher content per wafer and strong share for Entegris."
- NAND node transitions — Migrating from ~250 layers to ~300 layers, driving double-digit content per wafer gains
- HBM/DDR5 capacity adds — Tight supply expected to drive need for additional fab capacity heading into 2027
- Fab construction acceleration — More meaningful acceleration anticipated in 2027 as construction begins on new fabs
- Colorado facility qualification — Expected to substantially complete key customer product qualifications in 2026
- Advanced packaging — New product lines sampling, with more focused effort in this growing market
Ask Fintool AI AgentQ&A Highlights
On Outperformance Potential (Mike Harrison, Seaport): CEO Reeder on the path to 3-6% market outperformance: "When we look at 2026... performing on three of our four cylinders. The additional piece to then layer on top of it is CapEx... I'll just add... we typically get the most outperformance when we have node transitions."
On Margin Trajectory (Mike Harrison, Seaport): CFO LaGorga: "The key as we drive margins... is the volume leverage... there's a constructive environment going into this year. As we see more production going through our facilities, that's gonna go into our gross margin... That includes ramping Taiwan this year and continuing to ramp."
On Memory Revenue Exposure (Edward Yang, Oppenheimer): "Memory is about 30% of our total revenue. It's roughly split equally... about half of it is NAND, about half of it is DRAM."
On Mainstream Logic Strategy (Chris Parkinson, Wolfe): "When we look at that universe... Silicon carbide was a headwind for us in 2025... We think that is now stable and perhaps even improving slightly, albeit slowly in 2026."
The Bottom Line
Entegris delivered a clean beat in Q4 2025 with results at the high end of guidance across all metrics. The 8.6% earnings day move reflects investor confidence in the company's AI-driven growth story and improving financial trajectory. With CapEx normalizing, manufacturing ramps progressing, and free cash flow now embedded in executive compensation, the setup into 2026 looks favorable.
Key Dynamics to Watch:
- 2nm logic ramp — carries both higher content and strong Entegris share
- Fab CapEx timing — second-half weighted, potentially volatile
- NAND layer transitions — double-digit content gains offsetting slower wafer growth
- CFO search — Capital Markets Day pushed to Fall 2026
Numbers to Watch: Q1 guidance midpoint of $805M revenue (+4% YoY) and $0.74 Non-GAAP EPS, with Q2 sequential growth of 1%-3%.
Data sources: Entegris Q4 2025 earnings call transcript, February 10, 2026; S&P Global estimates; market data