Aug 4, 2026 earnings call — Raised full-year outlook amid AI-driven growth
Company raised full-year net sales guidance to $5.55 billion to $5.65 billion.
Revenue $1.4B (est $1.4B) · EPS $1.19 (est $1.07)
Key quotes
"In Semiconductor Technologies, we grew organic sales 17% year-over-year, led by AI-driven solutions as our advanced nodes portfolio grew more than 20% during the second quarter."
"Collectively, these platforms again grew more than 50% year-over-year during the second quarter."
"Since 2022, we've deployed approximately $600 million in growth investments across the business with a focus on expanding capacity and enabling the next generation of technologies aligned to our local-for-local operating model."
Analyst Q&A 7
Q4 seasonality and drivers
Q (James Schneider · Goldman Sachs): Analyst asked why Q4 sequential looks muted versus normal seasonality, whether Q3 saw pull-in, and what is driving that pattern or any headwinds.
A: Management said the updated guidance blends first-half momentum with better second-half visibility, customer ramp timing and industry supply dynamics, and it implies 18% sales growth and over 20% EBITDA growth for the year. They expect a typical seasonal peak in Q3 tied to consumer electronics, semi to be in the low single digits with mid-30s EBITDA margins and ICS mid-single digits with high-20s margins. They are watching developments in the Middle East, customer ramp timing and utilization rates, and noted a prior year $40 million timing move tied to an IT go-live.
"With that, now we do expect semi to be in the low single digits range with EBITDA margins still in the mid-30s." — Michael Goss (CFO)
Interconnect growth and capacity
Q (Melissa Weathers · Deutsche Bank): Analyst asked how management now sees long-term growth for Interconnect Solutions given AI and shrink-to-stack changes, and whether the company is capacity constrained as demand ramps.
A: Management said ICS delivered 28% organic growth, driven by advanced packaging and interconnect, AI PCBs and thermal management, and that AI has accelerated advanced packaging and thermal adoption. They said ICS is consumables-based and tied to volume, third-party data is still being modeled, and customer expansions in advanced packaging add high-value capacity. On capacity, they said their local-for-local footprint has been expanded since 2022 with modular, quick expansions and they can quickly bring capacity online to support ramps into 2027 and 2028.
"Obviously, we're really pleased by the continued strong performance of the ICS segment, 28% organic growth." — Jon Kemp (CEO)
Product wins and device mix
Q (Christopher Parkinson · Wolfe): Analyst asked when the many new product partnerships and launches will show results, whether those were planned at the spin, and how the device mix (logic vs memory) may evolve over 2–3 years.
A: Management said being a pure-play makes their innovation and customer-specific story more visible after the spin, and their R&D has earned design-table roles leading to POR wins across all lines of business. They said these wins are concentrated in the fastest-growing, highest-value parts of the market, and that device mix remains roughly 80% logic and 20% memory with some uptick in HBM and DRAM and slightly higher data center exposure.
"In terms of device types, what I would tell you is that advanced logic continues -- advanced logic and logic in general continues to be the most significant part of our portfolio at roughly 80%." — Jon Kemp (CEO)
Advanced packaging and mainstream demand
Q (Saurabh Dhir · Mizuho): Analyst asked how the company is positioned for different advanced packaging architectures and whether content opportunity is similar across them, and what is driving mainstream logic utilization into the next quarter.
A: Management said new advanced packaging architectures trend toward larger format sizes and tighter geometries, which increase material complexity and intensity, and that Qnity has incumbency and trusted relationships to capture that increased content. On mainstream logic, they said utilization has steadily improved driven by data center, automotive and industrial demand, expect sequential steady improvement, but memory market dynamics could limit some upside.
"And the good news about both of those trends, whether you're talking about smaller and tighter geometries or larger panel sizes, you're getting into more material complexity and more material intensity." — Jon Kemp (CEO)
Advanced node growth and MSI outlook
Q (Frank Mitsch · Fermium): Analyst asked why advanced nodes grew over 20% versus prior expectations and whether that pace can continue, and also asked for the expected MSI growth for the industry in 2026.
A: Management said this year shows broad-based successful commercialization and scale-up across the most advanced logic and memory nodes (HBM3/HBM4, 3nm, 2nm, 18A), which is driving higher content and may accelerate their shift toward 45%–50% advanced-node mix from roughly 40% today. They said they cannot give a quarter-by-quarter advanced node growth rate but are encouraged by the scale-ups. For MSI, they said their latest view is MSI is expected to be in the high single digits for 2026, and PCB growth mid- to high single digits.
"Our latest view and continue -- we continue to watch it closely is that our MSI is expected to be in the high single digits for 2026." — Michael Goss (CFO)
Semi outperformance and M&A priorities
Q (Bhavesh Lodaya · BMO): Analyst asked why Semi Technologies grew 18% well above MSI—whether share gains, fewer CMP steps, or other reasons—and whether MSI is an accurate tracking metric; and asked for updated thoughts on M&A and capital allocation.
A: Management said MSI remains the best indicator of wafer volume, but content outperformance is driven by customers successfully commercializing advanced nodes and by incremental share gains, especially in CMP pads, cleans and slurries, and continued strength in lithography-adjacent layers. On capital allocation, they said the first priority is organic reinvestment (CapEx and R&D), and they will pursue disciplined bolt-on and tuck-in M&A focused on adjacent high-growth areas like advanced packaging and thermal management with an active pipeline.
"We continue to execute against our capital allocation framework." — Michael Goss (CFO)
Margins by market and 2027 outlook
Q (Edward Yang · Oppenheimer): Analyst asked for margin profiles across data center, auto and electronics, and for an early view on 2027 growth relative to prior long-term models.
A: Management said company blended margin target is around 30%, with semi EBITDA margins consistently in the mid-30s and ICS structurally in the high-20s, and they expect that profile to continue into the back half of the year. They declined to give specific margins by end market but said AI data-center content has improved margin profile while industrial markets are more balanced and consumer electronics are lower. On 2027, they said it's early to speculate but they see broad-based demand across AI, high-performance computing and advanced connectivity, customers are investing capacity, and they are well positioned to benefit as that capacity comes online.
"From an end market perspective, our margin profile, obviously, total company, we focus and have a blended margin around 30% that we continue to focus on." — Michael Goss (CFO)