Earnings Beat and Raised Guidance Send Entegris (ENTG) Higher

Earnings Beat and Raised Guidance Send Entegris (ENTG) Higher

Thu, August 20, 2026 at 5:41 PM GMT+3 3 min read

• ENTG +0.49%

Brown Brothers Harriman, an investment management company, released its Q2 2026 investor letter for the "BBH Select Mid Cap ETF". A copy of the letter can be downloaded here. In the quarter, the fund increased 9.7% on a total return basis compared to the Russell Midcap Index's 13.8% return. Artificial intelligence is a key factor influencing market performance, with high-valuation and high-beta companies consistently outperforming others. The portfolio saw gains from being overweight in technology and industrials but missed opportunities due to underweighting more cyclical stocks. At the end of Q2 2026, the Fund held positions in 27 companies, with 48% of assets concentrated in the top 10 holdings. The Fund's strategy focuses on companies priced below intrinsic value to ensure a margin of safety, rather than on whether valuations are high or low. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its Q2 2026 investor letter, BBH Select Series – Mid Cap ETF highlighted Entegris, Inc. (NASDAQ:ENTG). Headquartered in Billerica, Massachusetts, Entegris, Inc. (NASDAQ:ENTG) provides materials and process solutions for the semiconductor and other high-technology industries. On August 19, 2026, Entegris, Inc. (NASDAQ:ENTG) closed at $144.28 per share, reflecting a market capitalization of $22.05 billion. Entegris, Inc. (NASDAQ:ENTG) posted a one‑month return of 6.64%, while its shares gained 75.76% over the past 52 weeks.

BBH Select Series – Mid Cap ETF stated the following regarding Entegris, Inc. (NASDAQ:ENTG) in its Q2 2026 investor letter:

"For the quarter, the Fund's largest positive contributors were Entegris, Inc. (NASDAQ:ENTG) and Arista Networks Inc. (Arista), both clear beneficiaries of the AI infrastructure buildout. Entegris returned 53.5% during the quarter, ending with a weight of 6.4%. Entegris is a key supplier to the semiconductor industry of essential filtration products, materials, and related delivery equipment that enables the high precision fabrication of semiconductor chips. Entegris reported strong first quarter 2026 results and provided second quarter guidance above consensus with accelerating growth in second and third quarter 2026. This matches an upgraded view of industry end markets, with wafer volumes now expected to grow mid- to-high-single digits for 2026 and fab construction to grow high-single digits, both of which were low-single digits expectations just last quarter. Relatively new CEO Dave Reeder indicated a focus on gross margins when he started, and that is evident from the substantial im provement in first quarter 2026 that is expected to continue over the year. Gross margin of 46.9% was significantly above guidance of 44.5-45.5% and increased 310 basis points (bps)1 from fourth quarter 2025. Lastly, Entegris now aims to bring net leverage to 3.0x by year end, driven by robust free cash flow of at least $450m."

Entegris, Inc. (NASDAQ:ENTG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 47 hedge fund portfolios held Entegris, Inc. (NASDAQ:ENTG) at the end of the first quarter, up from 43 in the previous quarter. In the first quarter of 2026, Entegris, Inc. (NASDAQ:ENTG) reported sales of $812 million, a 5% year-over-year increase, which was above the midpoint of its guidance range. While we acknowledge the potential of Entegris, Inc. (NASDAQ:ENTG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Entegris, Inc. (NASDAQ:ENTG) and shared a list of best AI stocks to buy and hold for the next 5 years. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.