ENTG · Entegris
Conviction · Medium · more likely to lead the S&P 500 over the next three months, by a modest margin
Wrong if: a daily close below $115
Note written ·
Price against the kill line
28.2% clear of its kill line on the 13 November 2026 close.
How to read this
The red mark is the price level of the published kill line: a close through it (a weekly close, on a weekly line) would prove the research note wrong on price. The dot is where the stock closed on 13 November 2026; a dot left of the mark has closed through its line.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a daily close below $115.00, on record since 10 November 2026. The shares are down 9.6% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A daily close below $115, about 8% under the $124.75 low close of the 5 November 2026 chip sell-off, which would show sector selling overriding the company's results. Fourth-quarter 2026 sales under the $1.025 billion guidance floor would also break the case.
Research onlyNot in the portfolio.
Key figures from the filings · Consumer Discretionary
Quarter to 26 September 2026, filed 29 October 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 1,006
- Revenue, change on a year (%)
- +24.6
- Gross margin (%)
- 49.7
- Operating margin (%)
- 22.9
- Free cash flow, four quarters ($M)
- 616
- Net cash, cash less debt ($M)
- −2,904
- Price to earnings (×)
- 57.3
- Enterprise value to sales (×)
- 7.2
All filed numbers
What Entegris reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Gross margin (%) | Operating margin (%) |
|---|---|---|---|---|
| first filed | 1,006 | +24.6 | 49.7 | 22.9 |
| first filed | 883 | +11.5 | 47.6 | 18.6 |
| first filed | 812 | +5.0 | 46.9 | 17.4 |
| first filed | 824 | −3.0 | 43.8 | 12.7 |
| first filed | 807 | −0.1 | 43.5 | 15.2 |
| first filed | 792 | −2.5 | 44.4 | 13.4 |
| Pre-tax income ($M) | 187 |
| Net income ($M) four quarters: 393 | 158 |
| Diluted shares, change on a year (%) against the quarter to 27 September 2025 | +1.1 |
| Operating cash flow ($M) | 798 |
| Capital spending ($M) | 182 |
| Free cash flow ($M) | 616 |
| Cash and short-term investments ($M) | 357 |
| Debt ($M) long-term debt | 3,261 |
| Net cash, cash less debt ($M) | −2,904 |
| Deferred revenue ($M) +51.8% on a year | 74.1 |
| Backlog, orders not yet delivered ($M) | Not reported |
| Receivables ($M) | 625 |
| Inventory ($M) | 769 |
| Shareholders' equity ($M) including non-controlling interests | 4,333 |
| Market value ($M) | 22,524 |
| Enterprise value, market value plus net debt ($M) | 25,428 |
| Enterprise value to sales (×) | 7.2 |
| Enterprise value to operating income (×) | 39.6 |
| Price to earnings (×) | 57.3 |
| Price to book value (×) | 5.2 |
| Free-cash-flow yield (%) | 2.7 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 5.6% of shares outstanding sold short, 3.8 days of average trading to cover, −2.3% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $0 | $0 |
| 12 monthsfrom | $0 | $50.8M |
The thesis
Entegris has modestly better than even odds of beating the S&P 500 over three months. Two things support that. Its third-quarter results and fourth-quarter guidance ran well ahead of consensus. Its 9 November 2026 Investor Day then set long-term targets well above current margins. The fourth-quarter 2026 report, expected in February 2027, settles it by testing sales against the $1,025–1,055 million guide.
At the Investor Day, Entegris set long-term targets of about 15% compound annual revenue growth and about 55% adjusted gross margin. The targets also include about 35% adjusted operating margin and about 30% compound annual growth in adjusted earnings per share (EPS). The company named no target year. The board authorized a $500 million share buyback. Entegris also plans to return about 50% of excess cash and to raise the quarterly dividend 10% starting in the first quarter of 2027 (company release, 9 November 2026).
The price still reflects sector fear more than these targets. The shares closed at $154.22 on 11 November 2026. That is 17.5% below the 52-week high of $186.94 set on 22 June 2026. Adjusted daily closes show a 5.8% fall over three months, a period in which the company raised guidance. The rating is Medium because results and targets point one way while the chip group's swings still set the day-to-day price.
Bullish and bearish views on Entegris, Inc.
The bull case on Entegris, Inc. (ENTG), in brief: third-quarter sales beat by a wide margin. The bear case: chip-sector swings drive the price.
Bull case
- Third-quarter sales beat by a wide margin. Sales were $1,005.7 million, up 24.6% year over year. Guidance had been $905–935 million and consensus $923.3 million. Adjusted EPS was $1.23 against a $1.02 estimate (company release and Finsee review, 29 October 2026).
- Fourth-quarter guidance sits far above consensus. Entegris guided sales to $1,025–1,055 million against a $959.24 million consensus. It guided adjusted EPS to $1.32–1.40 against $1.11, and adjusted operating margin to 27.4%–27.9% (Finsee review, 29 October 2026).
- Long-term targets leave room for margin gains. The Investor Day targets of about 55% adjusted gross margin and about 35% adjusted operating margin compare with 48.9% and 26.8% reported for the third quarter (company release, 9 November 2026; Finsee, 29 October 2026).
- Capital return begins as debt falls. The $500 million buyback and the planned 10% dividend increase follow a third quarter with $223.6 million of free cash flow and $200 million of debt repaid. Finsee calculates net leverage at 2.88x, down from 3.4x (29 October 2026 and 9 November 2026).
- Brokers kept high targets after the event. Barclays maintained its $224 target on 10 November 2026. On 30 October 2026, UBS raised its target to $220, Citi to $200, Truist to $199 and BMO to $195.
Bear case
- Chip-sector swings drive the price. The close fell to $124.75 on 5 November 2026 from $142.87 on 4 November 2026. Then the shares rose 11.3% on 11 November 2026 as chip stocks rallied after CoreWeave's results. The S&P 500 gained 1.31% that day (Motley Fool, 11 November 2026).
- Policy risk hit the group in November. The Motley Fool reported on 11 November 2026 that chip stocks had sold off after the U.S. midterm results. Investors feared tighter AI regulation or a pause in data-center construction.
- The targets carry no date. The Investor Day release gives no year for the 15% growth and 35% operating-margin targets, and it does not reconcile them to GAAP results (company release, 9 November 2026).
- Materials Solutions margin lags. Finsee put that segment's third-quarter margin at 20.4%. The company-wide adjusted operating margin was 26.8% (29 October 2026).
- Executives sold near $160 in August. Form 4 filings show Materials Solutions President Olivier Blachier sold 2,000 shares at $160.66 under a Rule 10b5-1 plan on 14 August 2026. They show General Counsel Joseph Colella sold 3,916 shares at $164.48 on 13 August 2026. Both sales followed option exercises.
Price setup
The last close was $154.22 on 11 November 2026. That is above the 50-day moving average of $146.74 and the 200-day moving average of $139.03, both as of that close. On the way down, the low close of the November sell-off was $124.75 on 5 November 2026.
The shares closed at $140.06 on 9 November 2026, the Investor Day session, after $127.98 on 6 November 2026. They slipped to $138.57 on 10 November 2026. The 52-week high of $186.94 on 22 June 2026 is the overhead reference, 17.5% above the last close. The 52-week closing low was $68.80 on 20 November 2025.
If the shares hold above the 200-day average through the fourth-quarter report, the price would be following the company's results rather than the sector. A fall back under $124.75 would show the November sell-off resuming.
Catalysts ahead
- ~February 2027 (est.): Fourth-quarter 2026 results. Tests sales against the $1,025–1,055 million guide and adjusted EPS against $1.32–1.40. It is also the first report against the 35% long-term operating-margin target.
What would change the view
A daily close below $115, about 8% under the $124.75 low close of the 5 November 2026 chip sell-off, which would show sector selling overriding the company's results. Fourth-quarter 2026 sales under the $1.025 billion guidance floor would also break the case.
The risks this note tracks, each with what would confirm it:
- Chip-sector selling on AI-spending or AI-regulation fears outweighs company results, as it did in the 5 November 2026 sell-off. Confirmed by: a major AI-infrastructure customer or cloud provider cutting its capital-spending plans, or new U.S. rules restricting AI data-center construction.
- Third-quarter strength was a pull-forward, and fourth-quarter demand fades. Confirmed by: fourth-quarter sales under the $1.025 billion guidance floor, or a first-quarter 2027 outlook below fourth-quarter sales.
- Margin progress toward the 35% long-term operating target stalls. Confirmed by: fourth-quarter adjusted operating margin below the 27.4% low end of guidance, or Materials Solutions margin staying near the 20.4% reported for the third quarter.
- Memory-chip spending cuts reduce the wafer starts that drive Entegris consumables. Confirmed by: a major memory maker cutting its capital-spending or wafer-start plans.
- Export controls restrict advanced-materials shipments to China. Confirmed by: a new rule covering semiconductor materials, or a company disclosure quantifying restricted sales.
What it trades with
Entegris trades with the semiconductor group and with the memory and foundry makers it supplies. It moves more than the market on the group's big days. It fell sharply in the 5 November 2026 chip sell-off and rose 11.3% on 11 November 2026, when the Nasdaq Composite gained 1.60%. CoreWeave's results drove that rally by easing doubts about AI spending (Motley Fool, 11 November 2026).
AI-infrastructure spending news therefore moves the shares as much as Entegris's own reports. Memory makers' plans matter directly: Entegris expanded its memory development partnership with Kioxia on 6 November 2026.
The evidence, claim by claim (7)
- Long-term model: about 15% revenue CAGR, about 55% adjusted gross margin, about 35% adjusted operating margin and about 30% adjusted EPS CAGR; no target year given. Entegris Capital Markets Day release · as of
- Board authorized a $500 million share repurchase; Entegris plans to return about 50% of excess cash and raise the quarterly dividend 10% starting in Q1 2027. Entegris Capital Markets Day release · as of
- Third-quarter 2026 sales were $1,005.7 million, up 24.6% year over year, against guidance of $905–935 million; adjusted EPS was $1.23 against a $1.02 estimate. Entegris third-quarter 2026 results release; Finsee review · as of
- Fourth-quarter guidance: sales $1,025–1,055 million (consensus $959.24 million), adjusted EPS $1.32–1.40 (consensus $1.11), adjusted operating margin 27.4%–27.9%. Entegris third-quarter 2026 results release; Finsee review · as of
- Third-quarter adjusted gross margin was 48.9% and adjusted operating margin 26.8%; free cash flow was $223.6 million and $200 million of debt was repaid. Finsee Q3 2026 earnings review · as of
- Barclays maintained its $224 price target after the Investor Day; UBS ($220), Citi ($200), Truist ($199) and BMO ($195) raised targets on 30 October 2026. Company news headlines; MarketBeat analyst alerts · as of
- Materials Solutions President Olivier Blachier sold 2,000 shares at $160.66 under a Rule 10b5-1 plan after an option exercise. SEC Form 4 filed 17 August 2026 · as of
Sources
- Finviz ·
- Entegris (ENTG) Q3 2026 earnings review · finsee.ai
- Stock Market Today, Nov. 11: Intel Climbs on Broader Chip Rally as AI Infrastructure Demand Lifts Semiconductor Stocks · fool.com ·
- Entegris (NASDAQ:ENTG) Price Target Raised to $200.00 · marketbeat.com ·
- Entegris (NASDAQ:ENTG) Stock Price Target Raised at Truist Financial · marketbeat.com ·
- UBS maintains Entegris at Buy, raises price target to $220 from $205 · tradingview.com
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