VECO · Veeco Instruments Inc.

Veeco Instruments reported first quarter 2026 results showing revenue of $158.3 million, down from $167.3 million in the prior year quarter, primarily due to shifts in semiconductor market mix with semiconductor revenue at 69% of total. GAAP gross margin contracted to 35.3% from 40.9%, driven by higher cost of sales at $102.5 million versus $98.8 million last year, while operating expenses rose to $58.5 million including $2.0 million in merger costs related to the pending transaction with Axcelis. This resulted in a GAAP operating loss of $2.7 million and net loss of $0.3 million. Non-GAAP adjustments for share-based compensation, amortization, and merger expenses yield operating income of $8.6 million and net income of $8.9 million. CEO Bill Miller highlighted execution amid AI data center expansion, noting strong order momentum in silicon photonics for optical connectivity. Revenue by market showed semiconductor at $109 million (down slightly), compound semi at $19 million, data storage $10 million, and scientific/other $20 million. Regionally, APAC contributed $90 million, US $32 million, with China at $20 million. Balance sheet remains solid with $383 million in cash and short-term investments, inventories at $282 million, and long-term debt steady at $226 million. Operating cash flow was $8 million. Guidance for Q2 revenue $170-190 million signals sequential growth, with full-year outlook unchanged at $740-800 million revenue and non-GAAP EPS $1.50-1.85, reflecting confidence in multi-year growth from AI and high-performance computing demand.