Ultra Clean Holdings, Inc. UCTT delivered first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
UCTT reported first-quarter non-GAAP earnings of 31 cents per share, beating the Zacks Consensus Estimate by 14.8%. The bottom line increased 10.7% on a year-over-year basis.
In the first quarter of 2026, UCTT reported revenues of $533.7 million, which rose 2.9% year over year and surpassed the consensus estimate by 1.5%. Strength was supported by solid execution across products and services, with continued momentum tied to customer ramps in the semiconductor equipment supply chain.
Ultra Clean Holdings, Inc. Price, Consensus and EPS Surprise
Ultra Clean Holdings, Inc. price-consensus-eps-surprise-chart | Ultra Clean Holdings, Inc. Quote
UCTT’s Q1 in Details
In the first quarter of 2026, Products revenues were $465.7 million (87.3% of total revenues), up 2% on a year-over-year basis, reflecting the company’s heavy exposure to critical subsystems, components and modules sold into semiconductor equipment programs.
Services revenues totaled $68 million (12.7% of total revenues), which increased 10.4% on a year-over-year basis. The faster growth in services underscores a steady demand backdrop for cleaning, coating and analytical work that can strengthen as tool utilization and wafer activity rise.
UCTT posted first-quarter non-GAAP gross margin of 16.5%, expanding 40 basis points (bps) on a sequential basis from 16.1% in the prior quarter.
The non-GAAP operating margin came in at 5.1%, expanding 10 bps on a sequential basis from 4.9% in the prior quarter.
UCTT’s Balance Sheet & Cash Flow
As of March 27, 2026, UCTT held $323.5 million in cash and cash equivalents, up from $311.8 million at the end of the prior quarter.
Cash flows used in operating activities were $33.3 million compared with $28.2 million in cash flows provided by operating activities in the previous quarter.
UCTT Provides Strong Guidance for Q2 2026
For the second quarter of 2026, UCTT expects revenues between $565 million and $605 million and non-GAAP earnings per share in the range of 44 cents to 66 cents. Management pointed to momentum building across the semiconductor landscape, supported by growing investments in AI-driven computing and increasing process intensity in areas such as deposition and removal.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $548.8 million, indicating year-over-year growth of 5.7%.
The Zacks Consensus Estimate for second-quarter non-GAAP earnings per share is pegged at 35 cents per share, indicating year-over-year growth of 29.6%.
Zacks Rank and Stocks to Consider
Currently, UCTT carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks ANET, Advanced Energy AEIS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Arista Networks have gained 26.1% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by 2 cents over the past 30 days, indicating an increase of 18.8% year over year.
Shares of Advanced Energy have gained 76.3% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Amphenol shares have surged 6.4% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at 95 cents per share, up by a penny over the past 30 days, indicating an increase of 50.8% year over year.
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This article originally published on Zacks Investment Research (zacks.com).