Ultra Clean Holdings earnings fall short of expectations, stock price drops after hours

LootboxPhobia · 2026-02-23T21:41:48+00:00

Ultra Clean Holdings' Q4 results fell short of profit expectations, with an adjusted EPS of $0.22 and revenue of $506.6 million. Looking ahead to Q1 2026, revenue is expected to be between $505 million and $545 million. Full-year revenue is projected to decline by 2%.

LootboxPhobia

2026-02-23 21:41:48

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Investing.com – Ultra Clean Holdings, Inc. (NASDAQ: UCTT) announced fourth-quarter results that fell short of profit expectations, despite revenue slightly exceeding analyst estimates, with the stock dropping 4.4% after hours on Monday.

The semiconductor equipment supplier reported adjusted earnings per share of $0.22 for the quarter, below the consensus estimate of $0.23. Revenue reached $506.6 million, slightly above the forecast of $503.34 million, but down 10% year-over-year from $563.3 million. Product revenue totaled $442.4 million, with service business contributing $64.2 million.

Looking ahead to the first quarter of 2026, Ultra Clean issued guidance expecting revenue between $505 million and $545 million. The midpoint of $525 million is higher than the previous quarter’s $506.6 million. The company expects adjusted EPS in the range of $0.18 to $0.34, with a midpoint of $0.26.

CEO James Xiao stated, “UCT’s fourth-quarter performance met expectations, reflecting disciplined execution in a dynamic operating environment. As AI applications gain momentum, we are increasing capacity readiness initiatives and accelerating global execution to align with customer roadmaps, enabling UCT to support sustained growth for years to come.”

The company’s adjusted gross margin for this quarter was 16.1%, down from 16.8% in the same period last year. Adjusted operating margin was 4.9%, compared to 7.0% a year earlier.

For the full fiscal year 2025, Ultra Clean reported revenue of $2.05 billion, a 2% decrease from $2.1 billion in 2024. Full-year adjusted EPS was $1.05, down from $1.44 last year.

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