ENTG Q3 2026 Non-GAAP diluted EPS $1.23, Beat Guidance by +$0.23
ENTG beat prior Q3 2026 Non-GAAP diluted EPS guidance by +$0.23. Net sales were $1,005.7 million, up 24.6% year over year, with GAAP operating margin of 22.9% and GAAP net income of $157.8 million, up 123.8%. For Q4 2026, the company guided to net sales of $1,025–$1,055 million, GAAP diluted EPS of $1.09–$1.17, non-GAAP diluted EPS of $1.32–$1.40, and adjusted EBITDA margin of 30.7%–31.2%.
Guidance comparison
Forward guidance
Key takeaways
Beat versus prior guidance: non-GAAP diluted EPS of $1.23 exceeded the prior Q3 2026 midpoint of $1.00 by $0.23, and GAAP diluted EPS of $1.03 exceeded the $0.79 midpoint by $0.24; both were above the top of their guided ranges.
Adjusted EBITDA margin of 30.2% was 1.7 percentage points above the prior 28.5% guidance midpoint, while non-GAAP net income of $189.7 million exceeded the $154 million midpoint by $35.7 million.
Net sales of $1,005.7 million rose 24.6% year over year and 13.9% sequentially, with Advanced Purity Solutions up 31.3% and Materials Solutions up 15.9%.
GAAP operating margin reached 22.9% versus 15.2% a year earlier and 18.6% in Q2 2026; adjusted operating margin was 26.8% versus 21.1% a year earlier.
Cash provided by operating activities was $266.8 million and free cash flow was $223.6 million; $200.0 million of debt was repaid in the quarter and long-term debt declined to $3,260.6 million from $3,697.6 million at December 31, 2025.
Q4 2026 outlook: net sales of $1,025–$1,055 million, GAAP net income of $168–$181 million, GAAP diluted EPS of $1.09–$1.17, non-GAAP net income of $203–$215 million, non-GAAP diluted EPS of $1.32–$1.40, and adjusted EBITDA margin of 30.7%–31.2%.
Non-GAAP results excluded $8.3 million of IEEPA tariff refunds received in Q3 2026 and $1.5 million of restructuring charges tied to an internal reorganization, workforce reductions, and the planned wind-down of the Life Sciences Fluid Management business.
Key metrics
Disclosure changes
- IEEPA tariff refunds excluded from non-GAAP results
In the three months ended September 26, 2026, Entegris received $8.3 million of refunds of International Emergency Economic Powers Act (IEEPA) tariffs that had been recognized in cost of goods sold as incurred from April 2025 through February 2026. The refunds were excluded from non-GAAP results as a discrete, non-recurring, out-of-period recovery and added $8.3 million to GAAP gross profit, operating income and net income, with $2.1 million in Materials Solutions and $6.2 million in Advanced Purity Solutions.
The refunds boosted GAAP results in the quarter but were excluded from non-GAAP results, affecting comparisons of GAAP versus non-GAAP gross margin, operating income and EPS. - Restructuring charges and planned wind-down of Life Sciences Fluid Management business
Restructuring charges of $1.5 million were recorded in Q3 2026 ($11.2 million for the nine months), arising from discrete cost-saving initiatives including an internal reorganization combining two complementary divisions into one and realigning the customer-facing organization, workforce reductions, contract termination costs and abandonment of certain capital equipment no longer necessary for long-term objectives, and the planned wind-down of the Life Sciences Fluid Management business.
The charges and disclosed exit of the Life Sciences Fluid Management business describe cost actions and a portfolio wind-down affecting reported results and operating expense structure. - Long-term debt reduction
Long-term debt was $3,260.6 million at September 26, 2026 versus $3,697.6 million at December 31, 2025 and $3,842.8 million at September 27, 2025. Payments of debt totaled $200.0 million in Q3 2026 and $515.0 million over the nine months, and a $1.7 million loss on extinguishment of debt of the Term Loan Facility was recorded in Q3 2026.
Debt repayment reduces long-term obligations and interest expense, with interest expense, net of $43.9 million in Q3 2026 versus $46.1 million a year earlier. - Cash flow and free cash flow
Cash provided by operating activities was $266.8 million in Q3 2026 ($606.0 million for the nine months), and free cash flow, defined as cash provided by operating activities less capital expenditures net of government incentive proceeds, was $223.6 million versus $191.0 million in Q3 2025 and $120.3 million in Q2 2026.
Higher operating cash flow and free cash flow funded $200.0 million of debt repayment and $15.4 million of dividends in the quarter.
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