Entegris Inc (NASDAQ:ENTG) Q3 2025 Earnings: Revenue Miss and Soft Guidance Drive Pre-Market Selloff

Entegris Inc (NASDAQ:ENTG) has announced its financial results for the third quarter of 2025, delivering a performance that largely aligned with its internal projections but fell short of Wall Street's more optimistic revenue expectations. The company's report, which also marks the first earnings under new CEO Dave Reeder, has been met with a negative reaction in pre-market trading.

Quarterly Performance Versus Expectations

The semiconductor materials supplier reported financial figures for the quarter ended September 27, 2025. While the company met its own guidance, a key revenue miss appears to be the primary driver behind the stock's negative pre-market movement.

The company's performance against analyst estimates is summarized below:

• Revenue: Reported $807.1 million, compared to analyst estimates of approximately $820.3 million.
• Non-GAAP EPS: Reported $0.72, slightly below analyst estimates of $0.74.
• Pre-Market Reaction: The stock was down approximately 4.8% following the earnings release, indicating investor disappointment with the top-line results.

Management Commentary and Strategic Focus

Dave Reeder, who recently began his tenure as President and CEO, expressed honor in leading the company and highlighted several positive aspects of the quarter. He noted that revenue, EBITDA, and non-GAAP EPS all met the company's guidance and that Entegris delivered record operating cash flow. Reeder pointed to strong momentum in products critical to the most advanced semiconductor nodes, including liquid filtration, deposition materials, and CMP consumables.

Looking ahead, the CEO expressed confidence in Entegris's position for 2026, emphasizing the company's role in supporting customers' technology roadmaps. He stated, "As devices become more complex, our expertise in materials science and materials purity becomes increasingly critical." Reeder expects these dynamics to drive growth in the company's content per wafer, leading to what he anticipates will be "market outperformance and margin expansion in the years to come."

Financial and Segment Overview

Beyond the headline revenue and earnings figures, the company's financial details reveal a mixed picture. Gross margin on a GAAP basis was 43.5%, down from 46.0% in the prior-year period, though it showed a slight sequential improvement from the second quarter's 44.4%. The company also reported a record $249.5 million in operating cash flow for the quarter.

Performance across the company's two operating segments was as follows:

• Materials Solutions (MS): Generated $348.6 million in sales, a slight increase from $346.7 million in Q3 2024.
• Advanced Purity Solutions (APS): Generated $460.8 million in sales, a slight decrease from $463.1 million in the same quarter last year.

Forward Guidance and Analyst Estimates

For the critical fourth quarter ending December 31, 2025, Entegris provided a sales outlook ranging from $790 million to $830 million. The midpoint of this guidance, $810 million, sits below the analyst sales estimate of approximately $844.2 million for Q4 2025.

The company's non-GAAP EPS guidance for Q4 is between $0.62 and $0.69. The midpoint of this range, $0.655, is also below the current analyst EPS estimate of $0.74 for the upcoming quarter. This conservative outlook for the next quarter likely contributed to the negative market sentiment.

Conclusion

Entegris's third-quarter results present a narrative of a company meeting its own operational targets but facing a challenging demand environment that led to a revenue miss against market expectations. The transition to new leadership under CEO Dave Reeder comes at a time when the company is navigating margin pressures and providing a near-term outlook that is cautious relative to analyst forecasts. The market's immediate reaction reflects this disappointment, focusing on the revenue shortfall and softer-than-expected guidance for the upcoming quarter.

For a detailed look at historical earnings and future analyst estimates for Entegris, you can review the data here.

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