Ultra Clean Holdings, Inc. Q1 2026 Earnings: Revenue Hits $533.7 Million

Ultra Clean reported Q1 2026 revenue of $533.7 million with GAAP EPS of -0.40 and non‑GAAP EPS of 0.31 as the company posted a GAAP net loss but solid adjusted profitability and raised Q2 guidance, with after‑hours movement driven mainly by an AI‑driven multi‑year growth narrative.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. (NASDAQ: UCTT) is a semiconductor capital equipment supplier specializing in critical subsystems, components, ultra‑high‑purity cleaning, and analytical services for leading chip manufacturers. The company operates two main divisions: Products, which provides integrated outsourced subassemblies and high‑precision manufacturing, and Services, which offers chamber parts cleaning, coating, and micro‑contamination analytics. Ultra Clean is headquartered in Hayward, California and primarily serves global semiconductor and advanced electronics customers.

Founded in the early 1990s (commonly cited as 1991), Ultra Clean has grown into a key enabler of advanced process nodes and AI‑driven semiconductor capacity expansions. As of the latest filings, Ultra Clean’s cash and cash equivalents stood at $323.5 million, with total assets of $1.86 billion, while long‑term debt increased to $601.9 million, partly due to a new convertible notes issuance. Recent commentary notes a negative P/E ratio around -14.5 reflecting current GAAP losses despite positive non‑GAAP earnings.

Top Financial Highlights

1. Total Q1 2026 revenue was $533.7 million, up from $518.6 million in Q1 2025, reflecting roughly 3% year‑over‑year growth.
2. Products revenue reached $465.7 million, while Services revenue was $68.0 million, showing continued strength in both core segments.
3. GAAP gross profit came in at $84.4 million, implying a GAAP gross margin of 15.8% for the quarter.
4. Non‑GAAP gross profit was $88.2 million, with a non‑GAAP gross margin of 16.5%, modestly higher than a year ago.
5. GAAP income from operations was $11.4 million, translating to an operating margin of 2.1%.
6. On a non‑GAAP basis, income from operations reached $27.1 million, for a non‑GAAP operating margin of 5.1%.
7. GAAP net loss attributable to UCT stockholders was $17.9 million, compared with a GAAP net loss of $5.0 million in Q1 2025.
8. GAAP diluted EPS came in at -0.40 per share, versus -0.11 per share in the prior‑year quarter.
9. Non‑GAAP net income attributable to UCT was $14.5 million, up from $10.6 million in Q1 2025.
10. Non‑GAAP diluted EPS was 0.31 per share, compared with 0.23 per share a year earlier, reflecting stronger underlying profitability.
11. Operating cash flow was negative at -33.3 million, driven largely by a $91.0 million increase in inventories and a $24.0 million increase in accounts receivable.
12. Cash and cash equivalents increased to $323.5 million as of March 27, 2026, versus $317.6 million a year earlier and $311.8 million at year‑end 2025.
13. Long‑term debt rose to $601.9 million, primarily reflecting $600.0 million of new convertible notes issued in the quarter and subsequent repayment of bank borrowings.
14. For Q2 2026, management guided revenue to $565 million–$605 million, with GAAP diluted EPS of 0.20–0.36 and non‑GAAP diluted EPS of 0.44–0.60.
15. Segment margins remained differentiated, with Q1 2026 non‑GAAP gross margin at 14.6% in Products and 30.0% in Services, leading to a consolidated non‑GAAP gross margin of 16.5%.

Beat or Miss?

What Leadership Is Saying?

“UCT delivered first quarter results above the midpoint of guidance, supported by demand across our customer base. Our customers’ accelerated technology roadmaps give us confidence that we are in the early stages of a multi‑year, AI driven expansion and we are executing with urgency to support them. Our focus on ramp‑readiness and driving efficiencies across our global footprint positions us well to deliver sustained growth over the long‑term.” – James Xiao, CEO, Ultra Clean Holdings, Inc.

“On a non‑GAAP basis, we delivered gross margin of 16.5%, operating margin of 5.1%, and net income of $14.5 million or $0.31 per diluted share in the first quarter, reflecting continued margin improvement and disciplined cost management while we invest to support anticipated demand.” – Paraphrased from Ultra Clean’s CFO commentary based on the detailed non‑GAAP reconciliation provided in the release.

Historical Performance (YoY Company View)

Competitor YoY Snapshot

To contextualize Ultra Clean’s performance, the table below compares its YoY trajectory to two peer semiconductor equipment and services providers: Applied Materials (AMAT) and Lam Research (LRCX), using their most recently reported equivalent quarters as reference. Figures are rounded and indicative, as competitors follow different fiscal calendars.

How the Market Reacted

Ahead of and around the Q1 2026 earnings release, Ultra Clean’s shares traded near a 1‑year high, supported by earlier guidance and a constructive 2026 outlook tied to semiconductor and AI investment cycles.

Third‑party commentary highlights that investors focused less on the current GAAP loss and more on improving non‑GAAP margins, strong Q2 guidance, and management’s multi‑year AI‑driven expansion narrative. While the press release itself does not specify the exact post‑earnings price move, sentiment around the print is broadly bullish given the revenue beat, higher forward guidance, and evidence of margin improvement amid rising inventories to support future demand.