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Entegris Faces China-Related CapEx Headwinds Despite Semiconductor Recovery!

Entegris reported a solid financial start to 2026, reflecting modest improvement in a recovering semiconductor environment. The company’s first-quarter revenue rose 5% year-over-year to $812 million, exceeding the midpoint of guidance. Growth was led by a 7% increase in the Advanced Purity Solutions (APS) segment and a 3% rise in Material Solutions (MS), driven primarily by unit-demand linked to semiconductor manufacturing intensity (MSI). Notably, liquid filtration achieved its third consecutive record quarter, while other key product lines such as advanced deposition and selective etch also showed strength. On the other hand, capital expenditure (CapEx)-related revenue declined modestly due to prior-year order pull-ins influenced by tariff actions; however, management expects CapEx revenue to gain momentum during the year supported by rising wafer fab equipment (WFE) spending and improved fab construction trends. Profitability improved meaningfully with a gross margin of 46.