Investors in MKS Inc. (NASDAQ:MKSI) had a good week, as its shares rose 7.4% to close at US$313 following the release of its quarterly results. It was a workmanlike result, with revenues of US$1.1b coming in 3.1% ahead of expectations, and statutory earnings per share of US$1.18, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for MKS from twelve analysts is for revenues of US$4.79b in 2026. If met, it would imply a notable 18% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 67% to US$8.07. Before this earnings report, the analysts had been forecasting revenues of US$4.48b and earnings per share (EPS) of US$6.43 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for MKS 18% to US$357on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values MKS at US$400 per share, while the most bearish prices it at US$265. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that MKS' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MKS is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MKS following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that MKS will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on MKS. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple MKS analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.