Axcelis Technologies (ACLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $199 million with non-GAAP EPS of $0.72, slightly above expectations, despite a $4.9 million customer settlement impacting results.

• CS&I revenue grew over 30% year-over-year, driven by service, consumables, and system upgrades.

• System shipments to the memory market reached their highest level since Q4 2023, with strong bookings in memory and silicon carbide, offset by softer general mature demand.

• Leadership transition occurred with the departure of the CFO and appointment of an interim CFO.

Financial highlights

• Q1 2026 revenue: $199 million; system revenue was $126 million; CS&I revenue was $73 million.

• Gross margin was 40.7% (non-GAAP), slightly below outlook due to the settlement; operating margin was 11.7%.

• Adjusted EBITDA was $27.7 million (13.9% margin); free cash flow was $16.3 million, including $12 million in merger-related expenses.

• Ended Q1 with $570 million in cash, equivalents, and marketable securities.

• Backlog stood at $453 million; bookings were $128 million, flat sequentially.

Outlook and guidance

• Q2 2026 revenue expected at $205 million, with non-GAAP gross margin improving to 43% and non-GAAP EPS of $0.90.

• Full-year 2026 revenue expected to be flat year-over-year, with growth in memory offset by declines in power and general mature.

• Full-year non-GAAP gross margin anticipated in the low to mid 40% range; operating expenses around $60 million per quarter.

• Merger with Veeco expected to close in the second half of 2026, pending regulatory approval in China.