New York, Feb 25, 2026, 08:28 (EST) — Premarket
- Shares up about 1.5% premarket at $73, after a sharp jump in the prior session
- Investors are still digesting fourth-quarter results and first-quarter guidance
- Needham lifted its price target to $70 after the update
Ultra Clean Holdings, Inc. shares climbed about 1.5% in premarket trading on Wednesday, last at $73, extending a fast move that has pulled the stock toward fresh highs. (Public)
The stock closed Tuesday at $71.96, up 17.18% on the day, after management used its earnings call to lean into an AI-driven upturn in wafer fab equipment spending — the chipmaking tools business that drives demand for Ultra Clean’s subsystems and services. Chief executive James Xiao told investors, “Ramp readiness is our top priority now.” (The Motley Fool)
That tone matters right now because Ultra Clean is a smaller, high-beta name tied to the semiconductor equipment cycle. When it moves like this, it is usually less about one quarter and more about whether customers are starting to pull forward orders — or just talking about it again.
Ultra Clean said fourth-quarter revenue was $506.6 million and the company posted a GAAP net loss of $3.3 million, or 7 cents per share. On a non-GAAP basis — a profit measure that strips out certain items — it reported net income of $10.0 million, or 22 cents per share. It forecast first-quarter revenue of $505 million to $545 million and non-GAAP diluted net income per share of 18 cents to 34 cents. “As AI adoption gains momentum, we are increasing our ramp-readiness initiatives,” Xiao said in a statement. (PR Newswire)
On a consensus basis, the quarter still read as mixed: Investing.com data showed earnings per share of $0.22 versus a $0.23 forecast, while revenue of $506.60 million came in above a $503.34 million forecast. The stock traded as high as $72.69 during Tuesday’s session, within a 52-week range listed as $16.66 to $72.69. (Investing.com)
A regulatory filing helps explain one drag in the background: Ultra Clean recorded a $151.1 million goodwill impairment charge in 2025 after a decline in market capitalization triggered an interim test, its annual report showed. The filing also flagged customer concentration — Applied Materials and Lam Research each accounted for more than 10% of total revenue in 2025, 2024 and 2023 — and said 2025 products revenue fell on lower customer demand amid a slowdown in purchasing activity. (SEC)
On the sell side, Needham & Company raised its price target on Ultra Clean to $70 from $50 and kept a “buy” rating, MarketBeat reported, citing Benzinga. Ultra Clean’s shares were already trading above that target in Wednesday’s premarket. (MarketBeat)
Still, there is a big “but” hanging over the move. Guidance spans a wide range, and management’s upbeat talk about AI-driven spending does not guarantee near-term orders, especially if customers push out tool deliveries or if mix and logistics costs keep margins choppy. With a stock that can swing double digits in a day, a little disappointment goes a long way.
For the next session, traders will be watching whether the stock holds above Tuesday’s close once regular trading opens — and whether more analysts follow Needham with fresh targets after the surge. Bigger volume will matter; extended-hours prints can exaggerate direction.
The next hard catalyst is first-quarter earnings, expected around April 29, according to TradingView’s earnings calendar. That report will test whether the company’s $505 million to $545 million revenue outlook is tracking and whether management can show the margin improvement it is talking about. (tradingview.com)
