Ultra Clean (NASDAQ:UCTT) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Ultra Clean (NASDAQ:UCTT) announced its quarterly earnings data on Monday. The semiconductor company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.53 by $0.03, Zacks reports. Ultra Clean had a negative net margin of 9.38% and a positive return on equity of 4.28%. 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 Performance

Shares of NASDAQ:UCTT traded up $5.86 during midday trading on Monday, hitting $89.17. The company had a trading volume of 1,536,610 shares, compared to its average volume of 1,342,420. Ultra Clean has a 12-month low of $21.49 and a 12-month high of $144.22. The company has a fifty day moving average of $100.52 and a two-hundred day moving average of $76.14. The company has a market cap of $4.00 billion, a price-to-earnings ratio of -20.79, a PEG ratio of 1.11 and a beta of 1.88. The company has a debt-to-equity ratio of 0.86, a current ratio of 3.07 and a quick ratio of 1.72.

Insider Buying and Selling at Ultra Clean

In other Ultra Clean news, CFO Sheri Savage sold 15,766 shares of Ultra Clean stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $89.47, for a total transaction of $1,410,584.02. Following the transaction, the chief financial officer owned 50,710 shares of the company’s stock, valued at $4,537,023.70. The trade was a 23.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Emily M. Liggett sold 8,198 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $92.18, for a total transaction of $755,691.64. Following the completion of the transaction, the director owned 38,152 shares of the company’s stock, valued at approximately $3,516,851.36. The trade was a 17.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 56,725 shares of company stock valued at $4,989,261 in the last ninety days. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Vise Technologies Inc. purchased a new position in shares of Ultra Clean in the fourth quarter valued at about $251,000. FORA Capital LLC bought a new stake in Ultra Clean during the 2nd quarter valued at approximately $247,000. Brooklyn Investment Group purchased a new position in Ultra Clean in the 4th quarter worth approximately $226,000. Summit Global Investments purchased a new position in Ultra Clean in the 4th quarter worth approximately $210,000. Finally, Russell Investments Group Ltd. boosted its stake in Ultra Clean by 164.6% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,260 shares of the semiconductor company’s stock worth $164,000 after purchasing an additional 4,516 shares during the period. Institutional investors own 96.06% of the company’s stock.

Wall Street Analyst Weigh In

UCTT has been the topic of a number of research analyst reports. TD Cowen upped their price target on Ultra Clean from $100.00 to $130.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Wall Street Zen lowered Ultra Clean from a “buy” rating to a “hold” rating in a research report on Saturday. Oppenheimer upped their target price on shares of Ultra Clean from $100.00 to $115.00 and gave the company an “outperform” rating in a research note on Tuesday, June 9th. Weiss Ratings lowered shares of Ultra Clean from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, July 24th. Finally, Zacks Research raised shares of Ultra Clean from a “hold” rating to a “strong-buy” rating in a report on Monday, May 25th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Ultra Clean currently has a consensus rating of “Buy” and a consensus target price of $113.40.

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.