ACLS · Axcelis Technologies, Inc.

Axcelis Technologies reported Q1 2026 results that slightly exceeded expectations, with revenue of $199.0 million compared to $192.6 million in the same quarter last year. The revenue growth was driven by strength in the CS&I business and a meaningful acceleration in Memory, particularly DRAM and HBM. However, GAAP gross margin declined to 40.5% from 46.1% a year ago, and GAAP operating margin fell to 4.0% from 15.1%, primarily due to higher operating expenses and transaction costs related to the pending merger with Veeco Instruments. Non-GAAP gross margin was 40.7%, and non-GAAP operating margin was 11.7%, down from 46.4% and 18.5% respectively. GAAP net income was $9.2 million ($0.30 per diluted share) versus $28.6 million ($0.88 per diluted share) in Q1 2025. Non-GAAP net income was $22.4 million ($0.72 per diluted share) compared to $34.2 million ($1.06 per diluted share). The company generated $18.1 million in operating cash flow and ended the quarter with a strong balance sheet, including approximately $570 million in cash and investments. Management noted that 2026 revenue is expected to be relatively flat year-over-year, with growth in Memory offset by continued digestion in Power and General Mature markets. For Q2 2026, Axcelis guided revenue of approximately $205 million, GAAP EPS of $0.57, and non-GAAP EPS of $0.90. The merger with Veeco is expected to close in the second half of 2026.