Veeco Instruments (VECO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $193.5 million, up 16–17% year-over-year, surpassing guidance, with strong order momentum across all major end markets, especially Advanced Packaging and Silicon Photonics, and major milestones achieved in the next-generation NSA program.

• Non-GAAP net income was $21.8 million ($0.33/share), GAAP net income was $11.9 million ($0.18/share), and non-GAAP operating income was $23.1 million, reflecting robust operational performance.

• Secured a $200 million Advanced Packaging order, boosting visibility into 2027 and supporting multi-year growth.

• Progress continues on the pending merger with Axcelis, with most regulatory clearances obtained and closing targeted for the second half of 2026, pending China antitrust approval.

• Manufacturing expansion plan executed to support anticipated 2027 revenue growth.

Financial highlights

• Q2 2026 revenue was $193.5 million, up from $158.3 million in Q1 2026; gross margin was 39–39.5% (non-GAAP), and net income was $11.9 million.

• Non-GAAP operating income was $23.1 million; diluted EPS was $0.33 (non-GAAP) and $0.18 (GAAP).

• Cash and short-term investments totaled $429 million as of June 30, 2026, up from $383 million in Q1 2026.

• Cash flow from operations was $51 million in Q2 2026; capital expenditures were $4 million.

• Semiconductor revenue was $131 million (68% of total), compound semiconductor $21 million, and data storage $22 million, all showing sequential and year-over-year growth.

Outlook and guidance

• Q3 2026 revenue expected between $200–$220 million; non-GAAP gross margin 41–42%; non-GAAP EPS $0.35–$0.49.

• FY 2026 revenue guidance raised to $780–$810 million; non-GAAP gross margin 40–42%; non-GAAP EPS $1.36–$1.61.

• Semiconductor revenue expected to grow over 10% year-over-year in 2026; compound semiconductor and data storage revenues expected to double year-over-year.

• Significant portion of anticipated 2027 revenue already in backlog, with customer forecasts extending beyond 2027.

• The merger with Axcelis is expected to enhance scale and market reach, with closing targeted for the second half of 2026.