ACMR

ACM Research, Inc. (ACMR) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For ACM Research, Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.51 per share for the current quarter, which represents a year-over-year change of +41.7%. The Zacks Consensus Estimate for ACM Research has increased 86.36% over the last 30 days, as one estimate has gone higher compared to no negative revisions. For the full year, the earnings estimate of $2.05 per share represents a change of +27.3% from the year-ago number. The revisions trend for the current year also appears quite promising for ACM Research, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 64.71%. The promising estimate revisions have helped ACM Research earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for ACM Research have attracted decent investments and pushed the stock 10.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACM Research, Inc. (ACMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:00 a.m. ET President and Chief Executive Officer - David Wang Chief Financial Officer - Mark McKechnie Chief Financial Officer of ACM Shanghai - Lisa Feng Managing Director of the Blueshirt Group - Steven Pelayo Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Mr. Steven Pelayo, Managing Director of the Blueshirt Group. Steven, please go ahead. Steven C. Pelayo: Good day, everyone. Thank you for joining us to discuss second quarter 2026 results, which we released before the U.S. market opened today. The release is available on our website as well as from Newswire services. There is also a supplemental slide deck posted to the Investors section of our website that we will reference during our prepared remarks. On the call with me today are CEO, Dr. David Wong; our CFO, Mark McKechnie; and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to Slide 2. Let me remind you that remarks made during this call may include predictions, estimates or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under Risk Factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gains and losses on short-term investments. For our GAAP results and reconciliation between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website and to Slide 13. Also, unless otherwise noted, the following figures refer to second quarter 2026 and comparisons are with the second quarter 2025. So with that, I will now turn the call over to David Wang. David? David Wang: Thanks, Steven. Hello, everyone, and welcome to ACM's Second Quarter 2026 Earnings Conference Call. The June quarter marked another period of strong execution for ACM Research. Revenue and shipments increased 36% year-over-year. Revenue growth was led by our ECP and advanced packaging product category, both of which increased more than 150% year-over-year. This strong performance reflects the progress we are making in transforming ACM into a broader multiproduct semiconductor equipment company. In June of this year, third-party research, Frost and Sullivan published a report called the Global and China Semiconductor Equipment Market Research. They now estimate the global semiconductor equipment market exceeded $140 billion in 2025 and will grow to more than $200 billion by 2029. They also estimate the Mainland China market exceeding $50 billion in 2025 and will grow to more than $80 billion in 2029. To fund our global operations, we have recently strengthened our balance sheet. ACM now has more than $1 billion of net cash globally. This includes approximately $300 million in the U.S. following our $150 million registered direct offering completed this past May. This financial strength provides a solid foundation to support our mission to become a key supplier of world-class capital equipment for the top major product of semiconductors. We believe AI is driving one of the most significant technology transition the semiconductor industry has experienced in many years. As chip complexity and chip size continue to increase, traditional wafer-level packaging approaching and reaching practical limit, creating demand for entire new manufacture technology across advanced packaging. ACM predicted a shift from wafer level to panel-level packaging more than 5 years ago and began investing early in horizontal panel level plating and other panel level wet process technology. We believe the market is now coming to us and has begun to validate those investments. Today, I'm pleased to announce that we have received order from 2 advanced packaging customers for our panel-level horizontal plating tool addressing both 510 x 515-millimeter and 310 x 310-millimeter panel size. One is the production order from existing customer in Mainland China and the second one is the evaluation system for a new customer in Asia. We believe ACM will be among the first company to deliver horizontal panel level plating system to multiple customers across multiple regions. Our proprietary horizontal plating architecture is a key differentiator, delivering strong superior plating uniformity while addressing the demand process requirement of next-generation AI packaging. This order are important milestone for what we believe could become a significant long-term growth opportunity. I'm pleased to report today that our order book has been quite strong. For the first half of 2026, orders increased 105% year-over-year. This is a mix across all product categories with a heavier emphasis on some of our new products. As with the prior years, ACM Shanghai plans to release backlog figure as of the September 30 in early October. Thanks to good execution by our operations team, we continue to expect shipment across each of our category to grow faster than revenue. We remain confident in our growth target for 2026 and beyond. For 2026, we see a healthy backdrop for China WFE as our customers continue to scale their production capacity. We expect an extra boost for our business from a few product cycle, including our SPM and furnace to enable us to outgrow the China WFE. Beyond this year, we estimate that our newer platform, including Track, PECVD and horizontal panel level plating will proceed for evaluating phase into a commercialization phase, resulting in production orders and drive our growth for years to come. In summary, we see 2026 as a big year for new product and another year of solid growth for ACM. Now on to our business results. Please turn to Slide 3. Revenue for the second quarter was $293 million, up 36%. Shipment for the second quarter was $282 million, up 36%. Gross margin was 46% and operating profit margin was about 19%. And we ended the quarter with a gross cash of $1.4 billion and a net cash of $1.0 billion. Now I will provide detail on product. Please turn to Slide 4. Revenue from single-wafer cleaning, [indiscernible] and semi-critical cleaning tool was $133 million, down 14% and represent 45% of revenue. We believe ACM has built industrial broadest cleaning product portfolio. Our products in this category, including SAPS, TEBO, Tahoe, backside clean, solvent clean, [indiscernible], scrubber and wet etcher and our proprietary single-wafer hard STM technology. In May, we present our proprietary hard STM cleaning technology in 2026 Surface Preparation and Cleaning Conference. This system demonstrates fewer than 15 particles performance at 15 nanoparticle sites. Our proprietary nozzle design prevents acid mist and chemical splashing outside chamber during the hot SCM process. And therefore, does not require periodical [indiscernible] water chamber outside clean. For customers, this means less maintenance, better uptime and more stable particle performance. We believe this represents the best performance in the industry. Our SPM platform is well suited for the advanced logic and memory, where cleaning requirements are becoming more demanding. Today, we also announced new capability for Ultra-C Tahoe, expanding it into a broader wet process platform. Tahoe is built on our patented hybrid architecture that combine batch SPM process and single wafer cleaning. We have added wet etching and monitor wafer reclaim application to the Tahoe platform. This integrates multiple process that had previously required a separate stand-alone tool into one Tahoe platform. The expanded platform has been adopted by multiple leading semiconductor manufacturers. ACM will continue to drive world-class process performance with a focus on ESG benefit to helping make advanced semiconductor manufacturer more efficient and more stable, sustainable. We have shipped a handful of single-wafer SPM tool in the first half of this year, and we are on track to ship more than in the second half of this year for more than 20 by end of this year. As a reminder, we estimate that SPM represents about 1/3 of the total cleaning market. We have had very little revenue today for the SPM tool. And with this major product cycle, we expect our overall cleaning revenue to rebound as our customers qualify the first tool and we grow our repeat shipment. Revenue from ECP, furnace and other technology grew 168% and represent 44% of the revenue mix. Growth was driven by momentum on both front and back-end plating tool. In logic device, we have benefited from larger die size and a steady increase from higher interconnector layer counts. In memory device, we have benefit as HBM packaging demands higher level of DRAM stacking and there -- and thus more than more copper process steps. During the quarter, we shipped our 2,000th electroplating chamber. This follows our 500th chamber shipment in 2022 and our 1,500th chamber shipment in 2025. This shows how quickly our installed base has grown and how broadly customers are adopting our technology in volume production. We had a larger contribution from furnace in the quarter, but it's still just a small part of our overall revenue mix. We continue to improve the technology breakthrough across key applications, including LPCVD, [indiscernible] oxation, thermal ALD, PLD and ultra-high temperature anneal. Revenue from advanced packaging, which excludes [ SAP ], but including service and parts was up 153%, this including coaters, developer, etcher, sweeper, scrubber and vacuum cleaning tool, supporting a broad range of advanced packaging applications. We are particularly pleased with our global progress here with active deployment in Singapore and North America across a range of these tools. We are making good progress with our new Track and PECVD platform. We remain confident that we have the right approach for our PECVD and Track platform, and we have made significant progress in 2026. Our proprietary 1-chamber 3 trucks architecture for PECVD performed well in our Lingang Mini Lab early this year. We shipped second tool to our new customer in Q1, and we anticipate this qualification by year-end. The story is similar to our track platform. Indeed, our high-throughput KIF track tool is progressing through customer evaluation, and we anticipate production qualification by year-end. We see strong interest in both stand-alone tools and configure to integrate with scanners. For both PECVD and Track, we are hard at work with the development effort with several key customers. We are optimistic that our tool performance can meet or exceed our customer requirements and result in production order in the near future. Please turn to Slide 5. The quarter, we have updated our market assumption with the latest WFE data from the report one report I mentioned earlier. This result in a $1 billion increase to ACM for global SAM of about $22 billion. Please turn to Slide 6. There are no changing to our long-term revenue target of $4 billion. It's still based on market share assumption for each of our product category, which gets us to about $2.5 billion from Mainland China and $1.5 billion from the global market. We adjusted some of our assumption based on China WFE now and about 50 billion. We continue to assuming a robust WFE environment over the next several years for the global market. The magnitude and the timing of our growth will be impacted by the overall spending trajectory of our customer and our market share gains. Next, let me provide an update on our production facility. First, on Lingang, we turn to Slide 8. The first building is in volume production, and we plan to open the second building later this year. Together, the 2 facility can support up to $3 billion in annual output. With our strong order book, we are fortunately to be ready to scale the second facility. Next, our Oregon facility, please turn to Slide 9. In Oregon, we remain on track for a U.S.-based demo center with multiple tool in world-class cleaning room environment starting later this year. This is important for our global customer, and we believe it will help us to secure production orders. Our global business is beginning to scale. As we said last quarter, we expect to have more than 20 tools installed at customer site outside Mainland China by the end of 2026. This included about 10 customers in 5 countries. It's clear that leading global chip makers can benefit from our innovative product. Although it is still early days for our global deployment, our engagements are growing, and we are confident that our global sales and service team will deliver good results. Now I will providing our outlook for full year 2026. Please turn to Slide 10. Based on our first half performance and improved visibility, we have reached the midpoint of our full year revenue guidance. We now expect full year 2026 revenue of $1.125 billion to $1.175 billion versus the prior range of $1.08 billion to $1.175 billion. This new range implies 25% to 30% year-over-year growth. We also expect shipment growing growth to outpace revenue growth in 2026. Now let me turn the call over to our CFO, Mark, who will review details of our second quarter results. Mark McKechnie: Thank you, David, and good day, everyone. Please turn to Slide 11. Unless I note otherwise, I'll refer to non-GAAP financial measures, which excludes stock-based compensation, unrealized gain loss on short-term investments. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. Also, unless otherwise noted, the following figures refer to the second quarter of 2026 and comparisons are with the second quarter of 2025. I'll now provide financial highlights. Revenue was $292.9 million, up 36%. Revenue for single-wafer cleaning, Tahoe and semi-critical cleaning was $133.0 million, down 14.2% and represented 45.4% of sales. As David noted, this included very little contribution from some of our newer products. As normal, SPM will be reflected first in our shipments, followed by revenue contribution in later quarters. Revenue for ECP front-end and packaging, furnace and other technologies was $128.5 million, up 167.7% and represented 43.9% of sales. Revenue for advanced packaging, excluding ECP, services and spares was $31.4 million, up 153.3% and represented 10.7% of sales. We saw a good improvement in our customer concentration. During the first half of 2026, our 10% customer mix has improved to just 1 customer at 12.7% of our revenue mix. This compares to three 10% customers representing 49.9% of our mix for the first half of 2025. While this can vary by period, we consider the reduced concentration as positive as it represents a broadening of our customer base. Total shipments were $281.5 million, up 36.4%. 2026, we expect shipment growth to outpace revenue growth. Gross margin was 46.0% versus 48.7%. Gross margin was above the midpoint of our long-term target model. We maintain our 42% to 48% long-term target range and product mix can cause fluctuations on a quarterly basis. Operating expenses were $78.5 million, up 23.9%. R&D was 13.9% of sales, sales and marketing was 7.7% and G&A was 5.2%. For 2026, we plan for R&D in the 16% to 18% range, sales and marketing in the 8% range and G&A in the 5% to 6% range. Operating income was $56.3 million versus $41.5 million. Operating margin was 19.2% as compared to 19.3%. Income tax expense was $13.5 million versus $1.9 million. For 2026, we expect our effective tax range in the 10% to 12% range. Net income attributable to ACM Research was $44.5 million versus $37.3 million. Non-GAAP net income excluded $6.6 million in stock-based compensation expense and the $69.6 million of unrealized gain on short-term investments and its effect on noncontrolling interest. Net income per diluted share was $0.61 versus $0.55. Now on to the balance sheet and cash flow items. Cash, cash equivalents, restricted cash and time deposits were $1.36 billion at the end of the second quarter. Net cash, which excludes short-term and long-term debt was $1.0 billion. This includes about $300 million of net cash on our U.S. balance sheet. Total inventory net was $783.1 million. This consisted of raw materials net at $406.1 million, work in progress net at $89.0 million, finished goods inventory net at $287.9 million, which primarily consists of first tools under evaluation at our customer sites, along with finished goods located at ACM's facilities. Cash used by operations was $6.4 million and capital expenditures were $65.4 million. For the full year 2026, we continue to expect capital expenditures of about $175 million. That concludes our prepared remarks. Now let's open the call for any questions that you may have. Operator, please go ahead. Operator: [Operator Instructions] Our first question coming from the line of Suji Desilva with ROTH Capital. Sujeeva De Silva: Lisa, congratulations on the progress here, great diversification going on. So it's really good to see. You got it. Yes. So David, I mean the global tools shipped to 200 is a great number. What geographies are you seeing the largest shipments today in? And maybe what geographies do you expect the best growth opportunity near term in as you scale out beyond China? David Wang: Yes. Actually, we see there, especially I want to say first half of this year, we have almost like close to a dozen tools go to Singapore, right? One of their packaging house there. Also have a tool and running one of their foundry in Singapore, too. So we do see Singapore as an opportunity for our front-end tool and also packaging tool there. Of course, we do have a customer continue in the U.S. And as I mentioned, we're going to finish the building of our demo lab in Oregon. With that demo lab starting using, we can attract more of interest and also attention into our differentiated technology. So this way, we can provide more of our demo capability for customer in the global. Sujeeva De Silva: Great. And then my second question is, given that you now have a significant amount of cash in the U.S., $300 million, maybe for David or perhaps Mark, what are the some of the planned use of those proceeds? Is it expanding capacity, which regions and perhaps even inorganic activity? Any color would be helpful there. David Wang: Yes. Obviously, with this cash preparation, it show our determination, also our confidence, right, expanding the sales activity outside Mainland China. As I mentioned, our long-term goal is still $1.5 billion for the revenue outside China. That's exactly for that goal, we prepare our funding and also our activity. Those funding basically supporting our activity definitely U.S. and also Taiwan and Singapore, Asia, also the Europe, right? That's bigger opportunity. We see a lot of demand come out for those -- especially for our differential technology, cleaning, plating and also where R&D for the even new PCB and the furnace. So it's really exciting. As I mentioned, AI we are driving a lot of new demand for the innovation technology. So we believe whatever developer in Shanghai can be really spread out to benefit for all the customers globally, right? It's our goal here. Sujeeva De Silva: Okay. That's very helpful. And then my last question. I know you guys are diversifying your customer base and you have one 10% customer focusing on global. But I'm curious in China, how levered are you to what's going on with CXMT in the DRAM market? Understanding AI is a plating play for you in other areas where you're very strong, but the DRAM effort there is growing very strongly. I'm curious how much leverage you have to that opportunity. David Wang: Well, I really cannot comment too much detail with each customer, right? But looking at overall, you look at the Frost and Sullivan, their report, right, showed a very strong demand and WFE market growth in China, right? First of all, I want to say China is a bigger market, right, for all this application, AI including. So it's a huge market there. And therefore, they can support a lot of chip manufacturer here. In the same way, they demand a lot of WFE equipment, right? So that we see opportunity here. And with the ACM, I say we have a real multiple products in the time line, especially this year, we call our 2026 as a big year for product -- new product come out to the market. and all our PECVD furnace and track system, we started development from 2000 or 2001 or 2019. In those time line, we are really focused on their technology, focused on differentiation. So through the 4, 5 years, our R&D team are working. We've got some real exciting results. And some of them, obviously, very approaching to the top-tier performance and something we see even better than top-tier performance, right? So that's really our confidence we can -- with this new product come out, we can further sustain or increase our high growth rate and for our revenue in the market in China. Of course, those new products after qualify in the China market will be also eventually will sell to the global market. So it's a lot of exciting for next few years. So our revenue will not only come from cleaning under top of plating anymore, new product will join our revenue growth. So it's going to be a very exciting year for next few years. Sujeeva De Silva: Congratulations to you and the team on the strong execution here. Operator: Our next question in queue coming from the line of Charles Shi with Needham & Company. Yu Shi: Maybe the first one, I know you don't really guide the quarter, but can you kind of walk us through how the Q3, Q4 is shaping up? You have probably a very big beat in Q1 and now in Q2. And I think if I look at the consensus estimates for Q3, Q4, those numbers probably need to come down a little bit. So wondering if the revenue timing or shipment timing has some change over the course of the last 90 days? And maybe I have a follow-up on the P&L-related items. David Wang: Yes. As I mentioned in our script, right, we do have in the first half year, our PO receiving and there has been increased 100%, more than 100%, right? It's really indication of real demand and also a large backlog. So -- and some of those tools, obviously, we try to deliver Q3, Q4 and some of the tool probably we're waiting for probably deliver later. So now we are really trying to increase our capacity. And obviously, now the components has been -- I want to say everybody demand for components, right? So there's a little bit constraint for supply there. So we are kind of looking at Q3, Q4 revenue, I think really how we execution our order manufacturing and also how we qualify ship the deferred revenue or the tool. So I want to say we're still very positive about our projection for whole year, right? This is why we increased our low side. And now we're expecting our whole year revenue 25% to 30% range. I think we're pretty confident for this forecast. Yu Shi: Yes. Maybe another question for Mark. Mark, I noticed that the range for SG&A as a percent of revenue kind of revised down a little bit compared with the last quarter. So I guess, I mean, based on your midpoint of your guidance, your overall OpEx may actually come in a little bit lighter than you previously expected. I wonder what is the reason for a slight OpEx cut for this year? Because I -- if I recall correctly, one of the reasons you raised the OpEx range, I think, at the beginning of the year was related to the build-out of the R&D lab, R&D center in Lingang. And wondering the OpEx savings relative to what you previously thought, is it related to some of the timing of that R&D center? And any color would be great. Mark McKechnie: Yes. Charles, there's not a lot to read into that. I mean, R&D, we're looking at 16% to 18%. G&A I said 5% to 6% and sales and marketing around 8%. So it's really just tightening up of the estimates now that we're halfway through the year, but not a meaningful change from where we were at the beginning of the year. Operator: Our next question coming from the line of Jimmy Huang with JPMorgan. Jimmy Huang: Mark, congrats for the results. Can you hear me? -- so obviously, China's manufacturing capacity build is very robust and structural. You also have a very solid product portfolio for WLP and POP. Do we have any guidance or expectations for manufacturing equipment shipment growth rate for this year and next year? David Wang: Okay. Well, we do not put a number, right, for the shipment of this year. But definitely, we also -- because of the strong, I want to say the backlog and our shipment and definitely will grow -- outgrow our revenue, right? So it will be a very strong shipment this year. Again, as I mentioned also, we're kind of short -- we see the shortage in our industry for some components. It used to be you can buy 4 months, sometimes you have to get probably longer delivery. Anyway, we're trying to managing those supply chain and make sure those components coming on time. That's maybe the one thing I want to say might impact our whole year shipment. But we still feel this year shipment is still pretty good. Jimmy Huang: Yes, I see. So do you have any like order intake -- order intake expectation for your advanced packaging equipment for this year? And another question is that for OSAT 10K wafer capacity built for 2.5D wafer level packaging, what's ACMR content value based on your product offerings at this moment? I think some like equipment companies, they could have this kind of sharing for investors to understand your progress. Mark McKechnie: Yes. I don't quite understand the -- maybe ask that again. David Wang: Repeat your question again? I'm not going to lost. Can you repeat again? Jimmy Huang: Yes, sure. I mean in OSAT wafer -- I mean for the advanced packaging capacity build such as 2.5D I mean, on the every 100 capacity build, what's the potential contribution to ACM product offering. Do we have any share on that? Mark McKechnie: Yes. He's just looking at kind of our -- the intensity of when our customers spend on 10,000 wafers per month, how much will that drive our equipment sales? I don't think we're really get. David Wang: I couldn't say there -- it depends on which line build, right? Maybe let's put this way, the cleaning market, right, you can see that -- I want to say the cover SAM. Cleaning market today, probably in the whole fab spending occupy 5% to 7%, depends on advanced lab or mature lab, right, fab. But you're looking really for the future, I want to say, advanced lab fab going on, cleaning become more and more important and some people even projecting continued market growth. It might be even come to 10% eventually because cleaning become more and more difficult and more of our material loss control, particle size gets more smaller. So also the drying method become maybe from the IPA to the super critical CO2 dry. So anyway, I see that market grow, number one. Second one is copper plating. It clearly, actually 4, 5 years ago, we said copper plating to be the $1.5 billion. That time, nobody really believe it, right? Now it's almost $1.5 billion already. With all the future backside of their power and HBM layer of their DRAM stacking going on. So there's a lot of [indiscernible] demand come out, right? And more important, this panel market also demand a lot of plating tool, too. So ACM is really pioneer in the panel level electroplating, right? That's a lot -- probably I want to say this is the first time ACM really stand in the top for the horizontal plating technology and market, I want to say, offering. So that really give us a bigger growth potential for this existing market. And further than that is the furnace and PECVD track, we see also a big potential there, too. So that's why I want to say ACM is a real good, exciting period and we're expecting continued growth for cleaning and copper plating and also with our new product, furnace, PECVD track them out, will further reinforce our revenue growth, right? So that's why I said the next few years, very exciting year for our growth. Jimmy Huang: Yes. Thank you, Dr. Wang. So I think for China, I think they are building a lot of CoWoS-like 2.5D advanced packaging capacity. As far as I know, they are probably still use a lot of [ TSMC ] baseline tool vendors, including processing tools and other stuff. Are we trying to get more market shares, more qualifications here? And how is our progress in China like CoWoS-like 2.5D capacity build? David Wang: Yes. I mean if you look at our actually plating growth rate, 156% and also our packaging tool growth also, right? It really should indication a lot of our new demand for 3D packaging, right? And the 3D packaging become more and more important for all the devices, right? So we see that growth potential here. ACM is well positioned for that with our cleaning and with our coater developer with all this PR driver, right, and also a couple of lading, right? So it's really good, I want to say, growth for the 2.5D or 3D packaging, right? Also, I want to say panel also too, right? Panel level packaging is another big one. So it's very exciting for -- I see the 3D packaging going up, which is good for our... Jimmy Huang: Yes. I think it's quite exciting that we just announced that we have the first PLP ECP tool evaluation system shipped to a customer in Asia. And regarding the progress, when could the evaluation results come out, any probability that we could receive the first purchase order from the customers in the next maybe few quarters or the next 6 to 12 months? David Wang: Yes. Obviously, you mentioned that the panel now is very hard, right? In all Asia, looking at Mainland China, Taiwan, Korea and even Singapore, right? It's very, very hard. And everybody believes that will be the ultimate solution for the large AI chip or the cobot, HBM, whatever packaging in large chip size. So we do see that trend. Obviously, we're well positioned for 515 x 510 with more large size as Intel probably pioneer now. Also, we're also positioned for [ 310 x 310 ] with leading by TSMC approach, right? So there's a lot of exciting. I want to say we're prepared for both markets. Operator: [Operator Instructions] Our next question coming from the line of Christian Schwab with Craig-Hallum Capital. Unknown Analyst: It's [ Ben Taxel ] on for Christian here. Great quarter, exciting stuff going on at ACMR. My first question is, what is -- any commentary, any initial commentary? I know it's kind of early on 2027 visibility. I get new products and strong orders. But anything else? Or what exactly should we think about for '27? David Wang: Well, that's right... Mark McKechnie: '26 right... David Wang: Well, I still see that a lot of fab we see, right, in the local China is in real in a multiyear expansion, right? And clearly, this year, we see many fab open. And also, we see that there are some fab will definitely beyond 2027 and grow. As I said, probably market is here, strong, bigger, right? So we're very excited about it. Even I said this, [indiscernible] they give a report, right? By year 2029, they are in China market beyond $80 billion. Well, I mean that's really -- I'm like that number, but it's exciting, right? Anyway, I want to say it's growing in the next few years in the local market here. Mark McKechnie: And we have, obviously, some of our new platforms that could kick in. I would also say some of the orders we get this year, we're not going to be able to support all those this year. So that will kind of flow into next year as well. So '27 is starting to shape up pretty good growth year. David Wang: Also mentioned, we made the progress, right, with all the track system, PECVD. And we see that both products take off. And obviously, we're probably -- we will become a leading supplier -- local supplier and for the track system. I know the PECVD quite a bit competitive there. But our [indiscernible] is a unique platform, and we see the certain special big market requirement for this PECVD too. So anyway, we are both excited about this new product. Unknown Analyst: Great. Just one other question. Any update on the Shanghai listing? Mark McKechnie: Hong Kong, right? Unknown Analyst: Sorry, yes. Yes, sorry. David Wang: I say we really cannot comment too much on Hong Kong listing, right? I can only tell that the April time line we announced, we're going to do that. And that's only information I can tell you right now. Eventually, maybe sometime later in the future, we may see -- we may disclose more. Operator: And we have a follow-up question from Jim Huang with JPMorgan. Jimmy Huang: We talked about component shortage. There are also a lot of component price hikes. Will rising component costs impact [indiscernible] gross margin? If so, which potential quarters for? And what kind of options does your company have to pass the cost to your customers? David Wang: Well, I mean, this is a global point, right? Looking at our supply, probably either major supply are components from Japan, right, or some in Korea. Definitely, it's a lot of growing. So there's a shortage there. We see that happen. So something we still switching to local supplier. And here, it looks better. But anyway, I want to say this is still -- looking at this year, global component supply is still tight, right? Even some mechanical parts, some sliders, even robot, for example, the components, they are to get on time. We see that really booming, right? That's why we have managed well in the second half of the year, make sure our supply catch our demand. Mark McKechnie: Yes. There's -- really, you kind of take a look at it. I mean no change to our gross margin target, 42% to 48%. So we're comfortable where we are. We have a good amount of raw materials, right, that we have been purchasing. We stocked up on some raw materials. So what we have in stock and kind of our outlook, we don't see any significant impact on gross margin. David Wang: We prepare certain parts at the end of last year, right, because we are predicting this year is a very heavy year. So we are certain -- our vendor did something special for us. That will help us right now. Jimmy Huang: Yes. But the demand is very robust and the supply is quite tight. So is there any -- is it possible that we could pass through this incremental cost of rising component costs to our customers? -- it's not a key priority of your business? David Wang: Well, it's hard to tell right now, right? Probably -- I mean, we're not raised pricing right now at this moment, right? Also, our -- I won't say our vendor supply -- not many people raising price. Some are rising, but not much. The only say that is they probably delayed shipment, right? They cannot tell you -- maybe I used to be sent in 4 months, maybe they did 6 months, that's happened, but they didn't increase our price, our key supplier, no. Jimmy Huang: I see. And my second follow-up question is regarding our manufacturing capacity build outside of Mainland China. Are we going to build more capacity in the South or in other Asia regions if we see more international orders? David Wang: Yes. You know that we do have our manufacture, I want to say, facility and capability in Korea, right? So that's really start to pay. And some tool we ship to the U.S. will be made actually now is made in Korea right now. And also some future tool will we ship into Taiwan and Singapore will be also made probably in Korea, too, right? As also I said, it's really more of a revenue growing in the U.S. or in other region, we can also probably propel secondary manufacturing site too. So we're really in other, I want to say, consideration and the direction. Jimmy Huang: I see. And regarding your further funding for this kind of capacity -- manufacturing capacity expansion, would you need to dispose some stake in Shanghai or you don't consider that option? Mark McKechnie: Yes. So I mean we're pretty comfortable with our balance sheet, right? David mentioned we have $300 million on our U.S. balance sheet. So part of that was kind of a war chest to show our customers that when we get the production orders, we can support that. And so we don't have any near-term plans to scale out of our -- any more of our Shanghai shares. Operator: Our next question coming from the line of [indiscernible] Capital Markets. Unknown Analyst: Congratulations on your new orders, 100% -- it's very impressive. Can I ask in terms of by segment, can you rank which one is the strongest for DRAM, HBM and logic? Mark McKechnie: In terms of our order strength, David, you're asking. Yes, I don't -- we didn't break it out, but David, in the prepared remarks mentioned that they were across all of our customer base and across our products, a little bit stronger in some of our newer products, but we didn't break it out by end markets. David Wang: Yes. Well, obviously, we see the strong in memory and also strong in logic, right, both. Unknown Analyst: Okay. David. And next question is about our cash flows. It looks like we have a very strong tailwind from the industry-wise and also our new product launches going ahead. So in terms of operating cash flows and CapEx, how should we think about that? Mark McKechnie: Yes. I think this year, on the cash flow side, we're still obviously heavily in growth mode. We're spending on our CapEx and what have you. But the whole -- the plan is in growth mode, you make these investments and then you -- we harvest those over the next several years. So this year, we'll probably burn some cash, obviously, putting capital to work on our new production facilities on our facilities outside in Oregon and what have you. But longer term, we see it, obviously, it's a positive cash flow operation. Operator: Seeing there are no more questions in the queue. I will now turn the call back over to Steven Pelayo for closing remarks. Steven C. Pelayo: Okay. Great. Before we conclude, I just want to give everyone a quick reminder of our upcoming investor conferences. On August 20, we will participate in the Needham Seventh Annual Virtual Semiconductor and SemiCap One-on-One Conference. On August 25, we'll present at the 2026 Jefferies Semiconductor IT Hardware and Communications Technology Conference at the Four Seasons Hotel in Chicago. On October 13, we will present at the 18th Annual CEO Summit Conference in conjunction with SEMICON West in San Francisco. Attendance at these conferences are by invitation only. For interested investors, please contact your respective sales representatives to register and schedule one-on-one meetings with the management team. With that, this concludes the call, and you may now disconnect. Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ACM Research (ACMR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. ACM Research stock has delivered a very strong run over the past few years, yet its current valuation checks point to a company that now looks closer to fairly priced than clearly cheap. ACM Research has returned roughly 4.9x over the past 3 years, which puts extra focus on whether the current share price already reflects much of the good news. Recent contract wins for advanced packaging and wet processing tools can support expectations for future revenue, while execution risks around expanding capacity and technology adoption may still affect how much of that growth turns into shareholder value. The stock scores 3 of 6 on Simply Wall St's broader valuation checks. This is a mixed picture rather than a clear bargain or clear overvaluation. The score details are available at 3/6. The issue now is whether ACM Research's recent gains leave enough upside for new investors at today's valuation. ACM Research delivered 220.6% returns over the last year. See how this stacks up to the rest of the Semiconductor industry. P/E is usually the cleanest quick check for ACM Research because it links directly to the earnings that support the current share price. ACM Research trades on a P/E of about 37.1x, which sits below the broader semiconductor industry average of 51.6x and well under the peer group average of 92.6x. That means the stock is not priced at the very top end of the sector on earnings, despite the attention it has attracted. A tailored "fair" P/E for ACM Research, which adjusts for factors such as growth, margins and risk, comes out at roughly 39.6x. The current 37.1x level is only slightly under that mark, which points to a market view that feels broadly aligned with the company’s profile. Despite the recent revenue guidance upgrade and contract wins, the P/E still sits close to this model fair value rather than at an obvious discount or premium. Overall, ACM Research appears roughly fairly valued on its P/E multiple at current levels. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for ACM Research aim to close the gap between the current P/E based valuation puzzle and the underlying story that would need to play out for ACM Research's stock to be worth materially more or less than it is today. They sit on the company’s Community page. Each narrative links its conclusion to a specific view on how ACM Research's growth, margins and risks could evolve, which you can revisit as fresh information emerges. Community views on ACM Research are wide apart, with one camp focused on upside from China and new tools and the other highlighting concentration risk and execution hurdles. Bull case: 22% undervalued Read the full Bull Case to see why ACM Research could be undervalued Bear case: 14% overvalued Read the full Bear Case to see why ACM Research could be overvalued Do you think there's more to the story for ACM Research? Head over to our Community to see what others are saying! ACM Research now screens as about right on its P/E based checks rather than clearly undervalued. After such a strong three year move, the valuation no longer bakes in low expectations, so fresh upside depends more on how well the company turns its contract pipeline and capacity plans into durable earnings. The key question from here is whether growth and margins can justify holding this richer multiple, or whether execution and concentration risks keep a lid on how much the market is willing to pay for the stock. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACMR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ACM Research, Inc. ACMR used its Q2 2026 call to emphasize stronger orders, new-product commercialization and firmer full-year visibility. First-half orders rose 105% year over year, with greater weight from newer products, while management raised the low end of the 2026 revenue guidance. Revenues rose 36% to $292.9 million, which topped the Zacks Consensus Estimate of $268.2 million. Non-GAAP EPS came in at $0.61, ahead of the Zacks Consensus Estimate of $0.3. ACM Research, Inc. price-consensus-eps-surprise-chart | ACM Research, Inc. Quote Chief executive officer and president David Wang said 2026 revenues are now expected at $1.13 billion to $1.18 billion versus the prior $1.08 billion to $1.18 billion, implying 25% to 30% year-over-year growth. Wang cited first-half execution and improved visibility, while customer spending, supply constraints and first-tool acceptances remain variables. Shipments are expected to outgrow revenues this year. In Q&A, a Needham & Company analyst asked about second-half timing. Wang said Q3 and Q4 revenues depend on manufacturing execution and deferred-revenue conversion, with some orders extending later. Wang placed panel-level packaging at the center of ACM's advanced-packaging strategy. The company received a production order for a 510 x 515 mm system in Mainland China and an evaluation order for a 310 x 310 mm system from a new Asian customer. The production system is scheduled for delivery in the first half of 2027, while the evaluation unit is scheduled for the fourth quarter of 2026. Wang said the horizontal plating platform addresses next-generation AI packaging requirements. Chief financial officer Mark McKechnie said ECP, furnace and other technologies produced $128.5 million of revenues, up 167.7%. Advanced packaging excluding ECP, services and spares rose 153.3% to $31.4 million. Wang said Track, PECVD and horizontal panel-level plating should move from evaluation toward commercialization beyond 2026. He also expects SPM and furnace product cycles to support growth this year. The SPM ramp remains early. Wang said ACMR shipped a handful of single-wafer SPM tools in the first half and remains on track to ship more than 20 by year-end, with revenues following qualifications. In Q&A, a Craig-Hallum analyst asked about 2027. Mark McKechnie said some 2026 orders should flow into next year, while Wang said Track and PECVD qualifications are anticipated by year-end. A JPMorgan analyst asked about component shortages and costs. Wang said some lead times have stretched, creating more delivery pressure than pricing pressure from key suppliers. McKechnie said ACMR stocked raw materials in advance and does not see a significant gross-margin impact. He maintained the 42% to 48% long-term gross-margin target range. Wang said ACMR has not raised customer pricing at this point. Second-quarter non-GAAP gross margin was 46.0%. Wang said ACMR expects more than 20 tools installed outside Mainland China by year-end across about 10 customers in five countries. Singapore received nearly a dozen tools in the first half. The Oregon demo center remains on track to begin operating later in 2026. Wang said Korea already provides manufacturing capability for some systems shipped to the United States. A ROTH Capital analyst asked about use of U.S. cash. Wang said funding will support expansion in the United States, Taiwan, Singapore and Europe, while McKechnie said ACMR has no near-term plan to sell additional ACM Shanghai shares. McKechnie said ACMR remains in growth mode and expects about $175 million of capital expenditures in 2026, with some cash use this year for production facilities and Oregon. Wang emphasized capacity expansion, product qualifications and geographic diversification. McKechnie said the investments are intended to be harvested over several years, with longer-term operations expected to generate positive cash flow. ACMR currently has a Zacks Rank #3 (Hold). Its Value, Growth, Momentum and VGM Score are all F, the lowest grade in the A-to-F Style Score scale. Zacks describes Style Scores as complementary to the Rank, with A or B scores preferred alongside Zacks Rank #1 (Strong Buy) and 2 (Buy) stocks. ACMR's current combination lacks that favorable alignment. The Zacks Rank can change as estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACM Research, Inc. (ACMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ACM Research, Inc. ACMR came out with second-quarter 2026 earnings of 61 cents per share, beating the Zacks Consensus Estimate of 30 cents. This compares with earnings of 55 cents per share a year ago. ACM Research reported revenues of $292.92 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.24%. Revenues increased 36% year over year from $215.37 million. ACM Research's quarterly performance was led by strong growth across its ECP and advanced packaging businesses. Revenues from ECP, furnace and other technologies surged 167.7% year over year to $128.5 million, accounting for 43.9% of total sales. Advanced packaging revenues, excluding ECP but including services and spares, increased 153.3% to $31.4 million, representing 10.7% of sales. ACM Research, Inc. price-consensus-eps-surprise-chart | ACM Research, Inc. Quote The company's cleaning business generated $133 million of revenues, which declined 14.2% year over year and accounted for 45.4% of sales. Management noted that newer SPM products contributed little revenue during the quarter, as shipments typically precede revenue recognition following customer acceptance. ACM Research shipped its 2,000th electroplating chamber during the quarter, following its 500th chamber milestone in 2022 and 1,500th in 2025. Management said the milestone reflects growing adoption of its ECP technology in high-volume logic, memory and 3D packaging applications. ACM Research's non-GAAP gross margin was also 46% versus 48.7% a year ago. Despite the year-over-year decline, gross margin remained above the midpoint of the company's long-term 42-48% target range. ACMR’s non-GAAP operating income rose 35.8% to $56.3 million, with non-GAAP operating margin at 19.2%. ACM Research's order activity provides additional support for its growth outlook. Management said first-half 2026 orders increased 105% year over year, with growth spanning all product categories and a heavier emphasis on newer products. The company also received a production order for a 510 × 515 mm Ultra ECP ap-p tool from an existing advanced packaging customer in mainland China and an evaluation order for a 310 × 310 mm tool from a new leading panel-manufacturer customer in Asia. Management expects newer platforms, including Track, PECVD and horizontal panel-level plating, to progress from evaluation toward commercialization, potentially supporting production orders and growth over the coming years. ACM Research also expanded its Ultra C Tahoe wet-processing platform by adding wet etch and monitor-wafer reclaim applications. The company said the expanded platform has been adopted by leading semiconductor manufacturers, with the Tahoe Recycle application already running in volume production at customer facilities. ACM Research ended the quarter with $1.36 billion in cash, cash equivalents, restricted cash and short-term time deposits compared with $1.25 billion as of March 31, 2026. ACM Research raised its fiscal 2026 revenue guidance to $1.125-$1.175 billion compared with its previous range of $1.08-$1.175 billion. The new range implies 25-30% year-over-year revenue growth. Management also expects shipment growth to outpace revenue growth in 2026. Management described 2026 as a “Big Year” for new products, with customer evaluations and product ramps underway across SPM cleaning, Track, PECVD and horizontal panel-level plating. The company is also expanding its engagement with global customers and expects its Oregon facility to open in the fourth quarter of 2026. At present, ACMR carries Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 141.5% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year. Shares of Applied Materials have jumped 109.8% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past seven days, indicating a rise of 29.2% year over year. Analog Devices shares have surged 43.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 33.9% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACM Research, Inc. (ACMR) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ACM Research, Inc. (ACMR) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +103.33%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.34, delivering a surprise of +112.5%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. ACM Research, which belongs to the Zacks Semiconductor Equipment - Material Services industry, posted revenues of $292.92 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.24%. This compares to year-ago revenues of $215.37 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ACM Research shares have added about 100.2% since the beginning of the year versus the S&P 500's gain of 12.6%. While ACM Research has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ACM Research was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $320.37 million in revenues for the coming quarter and $1.37 on $1.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor Equipment - Material Services is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Quantum Computing Inc. (QUBT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quantum Computing Inc.'s revenues are expected to be $4.7 million, up 7733.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACM Research, Inc. (ACMR) : Free Stock Analysis Report Quantum Computing Inc. (QUBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FREMONT, Calif., Aug. 07, 2026 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced wafer-level packaging applications, today reported financial results for its second quarter ended June 30, 2026. “We delivered a strong second quarter, with revenue and shipments both increasing 36% year over year,” said Dr. David Wang, President and Chief Executive Officer of ACM. “Revenue growth was led by the ECP and advanced packaging categories, which grew 168% and 153%, respectively, reflecting the growing contribution of our broader product portfolio. During the quarter, we shipped our 2,000th ECP chamber, an important milestone that demonstrates the increasing adoption of our ECP technology in high-volume manufacturing of logic, memory and 3D packaging. We also delivered good profitability, and ended the quarter with $1.0 billion in net cash, providing significant financial strength to support our long-term growth strategy.” Dr. Wang continued, “Customer demand as demonstrated by increased order activity provides us with good visibility for the remainder of 2026. We see 2026 as a ‘Big Year’ for new products as we proceed with customer evaluations and product ramps across multiple platforms, including SPM Cleaning, Track, PECVD and horizontal panel-level plating for advanced packaging. At the same time, we are expanding engagement with global customers and making solid progress at our Oregon facility. We are raising our full-year 2026 revenue outlook for 25% to 30% growth. We remain confident in our ability to outgrow the market through new product cycles, market share gains and increasing contributions from global markets as we execute toward our long-term revenue target of $4 billion.” (1) Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized gain on short-term investments and its impact to net income attributable to non-controlling interests. Outlook ACM has raised its revenue guidance range to $1.125 billion to $1.175 billion for fiscal year 2026, from the prior range of $1.08 billion to $1.175 billion. This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors. Operating Highlights and Recent Announcements Shipments. Total shipments in the second quarter of 2026 were $281.5 million, up 36.4% when compared to the second quarter of 2025. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters. Shipment of the 2,000th Electroplating Chamber. ACM shipped its 2,000th electroplating chamber, following shipment milestones of 500 chambers in 2022 and 1,500 chambers in 2025. The achievement underscores the continued commercial expansion and growing market recognition of ACM's electroplating solutions. Presented Proprietary High-Temperature SPM Cleaning Technology at SPCC 2026. ACM presented its proprietary high-temperature SPM cleaning technology at the Surface Preparation and Cleaning Conference (SPCC) 2026, showcasing particle performance of fewer than 15 particles at 15nm without requiring periodic DI water chamber cleaning. The technology is designed to improve yield and lower maintenance requirements for advanced GAA logic, DRAM and HBM applications. Expansion of the Ultra C Tahoe Wet Processing Platform. ACM has expanded its Ultra C Tahoe system into a multi-process wet processing platform, by adding advanced wet etch and monitor wafer reclaim applications for logic and memory manufacturing. The expanded platform has been adopted by leading semiconductor manufacturers, and the Tahoe Recycle application is running in volume production at customer facilities. This expanded Tahoe platform demonstrates the versatility of our hybrid architecture and its scalability for advanced semiconductor manufacturing. ACM will continue to drive world-class process performance and integrating environmental benefits into product development to help make advanced semiconductor manufacturing more efficient and sustainable. Received Orders for the Ultra ECP ap-p Tool. ACM received the first production order for one 510 × 515 mm Ultra ECP ap-p tool from an existing advanced packaging customer in mainland China, with delivery scheduled for the first half of 2027. ACM also received an evaluation order for one 310 × 310 mm tool from a new leading panel-manufacturer customer based in Asia, with delivery scheduled for the fourth quarter of 2026. Second Quarter 2026 Financial Summary Unless otherwise noted, the following figures refer to the second quarter of 2026 and comparisons are with the second quarter of 2025. Revenue was $292.9 million, up 36.0%, primarily driven by higher sales of ECP (front-end and packaging), furnace and other technologies, and advanced packaging (excluding ECP), services & spares, partially offset by lower sales of single-wafer cleaning, Tahoe and semi-critical cleaning tools. Gross margin was 46.0% versus 48.5%. Non-GAAP gross margin, which excludes stock-based compensation, was 46.0% versus 48.7%. Gross margin was above the mid-point of ACM’s long-term business model target range of 42% to 48%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume. Operating expenses were $84.9 million, an increase of 16.6%. Operating expenses as a percentage of revenue decreased to 29.0% from 33.8%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $78.5 million, up 23.9%. Non-GAAP operating expenses as a percentage of revenue decreased to 26.8% from 29.4%. Operating income was $49.7 million, compared to $31.7 million. Operating margin was 17.0% compared to 14.7%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $56.3 million, compared to $41.5 million. Non-GAAP operating margin, which excludes stock-based compensation, was 19.2% compared to 19.3%. Unrealized gain on short-term investments was $69.6 million, compared to an unrealized gain of $2.7 million. Unrealized gain reflects the change in market value of the investments by ACM’s principal operating subsidiary, ACM Research (Shanghai), Inc. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics. Income tax expense was $13.5 million, compared to $1.9 million. The change in tax expense primarily resulted from the tax effect of an increase in operating profit for the period. Net income attributable to ACM Research, Inc. was $89.0 million, compared to $29.8 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized gain on short-term investments, was $44.5 million, compared to $37.3 million. Net income per diluted share attributable to ACM Research, Inc. was $1.23, compared to $0.44. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized gain on short-term investments, was $0.61, compared to $0.55. Cash and cash equivalents, plus restricted cash and short-term time deposits were $1.36 billion at June 30, 2026, compared to $1.25 billion at March 31, 2026. Net cash, which excludes short-term and long-term borrowings, was $1.0 billion at June 30, 2026, compared to $924.2 million at March 31, 2026. Conference Call Details A conference call to discuss results will be held on Friday, August 7, 2026, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call. Online Registration: https://register-conf.media-server.com/register/BIc282607074af4b0895b2ed37fb7d0eb9 Participants who have not pre-registered may join the webcast by accessing the link at ir.acmr.com/news-events/events. A live and archived webcast will be available on the Investors section of the ACM website at www.acmr.com. Use of Non-GAAP Financial Measures ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc. and basic and diluted earnings per share as supplemental measures to GAAP financial measures regarding ACM’s operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM does not believe is indicative of its core operating results. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted earnings per share exclude the effect of stock-based compensation and unrealized gain (loss) on short-term investments, which ACM also believes are not indicative of its core operating results. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided below under “Reconciliation of GAAP to non-GAAP Financial Measures.” ACM believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM uses these financial measures internally to evaluate its operating performance and for planning and forecasting of future periods. Financial analysts may focus on and publish both historical results and future projections based on the non-GAAP financial measures. ACM also believes it is in the best interests of investors for ACM to provide this non-GAAP information. While ACM believes these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with ACM’s consolidated financial statements prepared in accordance with GAAP. Forward-Looking Statements Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events. About ACM Research, Inc. ACM develops, manufactures and sells semiconductor process equipment spanning cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools, enabling advanced and semi-critical semiconductor device manufacturing. ACM is committed to delivering customized, high-performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit www.acmr.com. © ACM Research, Inc. Ultra C and the ACM Research logo are trademarks of ACM Research, Inc. For convenience, these trademarks appear in this press release without ™ symbols, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to the trademarks. For investor and media inquiries, please contact: As described under “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income attributable to ACM Research, Inc., and basic and diluted earnings per share exclude unrealized gain (loss) on short-term investments. The following tables reconcile gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

Sprout Social (SPT) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +62.50%. A quarter ago, it was expected that this developer of cloud software would post earnings of $0.16 per share when it actually produced earnings of $0.23, delivering a surprise of +43.75%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sprout Social, which belongs to the Zacks Internet - Services industry, posted revenues of $123.85 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $111.78 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sprout Social shares have lost about 23.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Sprout Social has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sprout Social was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $123.66 million in revenues for the coming quarter and $0.92 on $494.13 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ACM Research, Inc. (ACMR), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -44.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ACM Research, Inc.'s revenues are expected to be $268.15 million, up 24.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprout Social, Inc. (SPT) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ACM Research, Inc.? Here are five stocks we like better. Strong Q2 growth: Revenue rose 36% year over year to $292.9 million, driven by 168% growth in electroplating, furnace and related technologies and 153% growth in advanced packaging. Non-GAAP operating income increased to $56.3 million, while diluted EPS rose to $0.61. Outlook raised: ACM Research increased its 2026 revenue guidance midpoint, now expecting $1.125 billion to $1.175 billion in revenue, representing 25% to 30% annual growth. First-half orders more than doubled year over year, potentially supporting growth into 2027. Product mix and expansion are shifting toward plating and packaging: Cleaning revenue declined 14.2%, while the company won panel-level plating orders and continued expanding production capacity and international installations. Management also cited customer diversification, with only one customer accounting for more than 10% of first-half revenue. 3 Small Caps Hitting 52-Week Highs: Take Profits or Let Ride? ACM Research (NASDAQ:ACMR) reported second-quarter revenue of $292.9 million, up 36% from a year earlier, as growth in electroplating, furnace and advanced-packaging products offset a decline in cleaning-related revenue. The semiconductor equipment supplier also raised the midpoint of its full-year revenue outlook and said orders rose 105% in the first half of 2026. Chief Executive Officer Dr. David Wang said revenue and shipments both increased 36% year over year in the June quarter. Revenue from the company’s electrochemical plating, furnace and other technology category rose 168%, while revenue from advanced packaging, excluding ECP but including services and spares, increased 153%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth ACM Research: Why This Chinese Chip Stock Is Just Getting Started “The June quarter marked another period of strong execution for ACM Research,” Wang said, adding that ECP and advanced-packaging product categories each grew more than 150% year over year. ACM reported non-GAAP gross margin of 46.0%, compared with 48.7% a year earlier, and operating margin of 19.2%, essentially flat with 19.3% in the prior-year period. Non-GAAP operating income increased to $56.3 million from $41.5 million. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Small Cap, Big Potential: 3 Tech Disruptors You Should Know About Net income attributable to ACM Research was $44.5 million, compared with $37.3 million a year earlier. Diluted earnings per share were $0.61, up from $0.55. The company increased its 2026 revenue guidance to a range of $1.125 billion to $1.175 billion, from its prior range of $1.08 billion to $1.175 billion. The new forecast implies annual revenue growth of 25% to 30%. Management continues to expect shipment growth to exceed revenue growth this year. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer Mark McKechnie said the company expects full-year research and development spending to represent 16% to 18% of revenue, sales and marketing spending to be around 8%, and general and administrative spending to be 5% to 6% of revenue. ACM maintained its long-term gross-margin target range of 42% to 48%. Cash, cash equivalents, restricted cash and time deposits totaled $1.36 billion at quarter-end, while net cash was $1.0 billion. The company said approximately $300 million of net cash was held on its U.S. balance sheet, following a $150 million direct offering completed in May. ACM used $6.4 million in operating cash flow during the quarter and spent $65.4 million on capital expenditures. McKechnie reiterated expected capital expenditures of about $175 million for the full year, reflecting continued investment in production and global operations. Revenue from single-wafer cleaning, Tahoe and semi-critical cleaning products totaled $133 million, down 14.2% from a year earlier and representing 45.4% of total sales. Wang said the category included little contribution from newer products, particularly its single-wafer hot sulfuric peroxide mixture, or SPM, tools. The company said it shipped a handful of single-wafer SPM systems during the first half and expects to ship more in the second half, targeting more than 20 systems by year-end. Wang said ACM expects its broader cleaning revenue to recover as customers qualify initial tools and repeat shipments increase. ACM also expanded capabilities on its Ultra C Tahoe platform, adding wet etching and monitor-wafer reclaim applications. The company said the expanded platform has been adopted by multiple leading semiconductor manufacturers. Meanwhile, revenue from ECP, front-end and packaging, furnace and other technologies reached $128.5 million, accounting for 43.9% of sales. Wang said demand was supported by both front-end and back-end plating applications, including increased copper-processing requirements tied to larger logic dies, more interconnect layers and higher-bandwidth memory packaging. During the quarter, ACM shipped its 2,000th electroplating chamber. The company had shipped its 1,500th chamber in 2025 and its 500th chamber in 2022. Wang announced that ACM received orders from two advanced-packaging customers for horizontal panel-level plating systems. One was a production order from an existing customer in mainland China for a 510-by-515 millimeter panel format, while the other was an evaluation system for a new customer in Asia using a 310-by-310 millimeter format. Management said it believes ACM will be among the first companies to deliver horizontal panel-level plating systems to multiple customers across regions. Wang described panel-level packaging as a potential long-term growth opportunity as artificial intelligence-related chip designs increase in complexity and size. The company also said its PECVD and track platforms are progressing through customer evaluations. ACM expects production qualification for a PECVD tool shipped to a new customer in the first quarter, as well as its high-throughput KrF track tool, by the end of 2026. Outside mainland China, ACM said it expects to have more than 20 tools installed at customer sites by year-end, spanning roughly 10 customers in five countries. Wang cited activity in Singapore and North America, while highlighting the planned opening later this year of a U.S.-based demo center in Oregon. ACM’s first Lingang production building is already in volume production, and the company expects to open a second building later this year. Together, the two facilities can support up to $3 billion in annual output, according to management. Management said first-half orders rose 105% year over year across product categories, with relatively greater emphasis on newer products. McKechnie said some orders received in 2026 may not be fulfilled this year, potentially supporting growth into 2027. The company acknowledged that component availability remains tight, with longer lead times for certain parts. However, McKechnie said ACM does not anticipate a significant impact on gross margin, citing inventory purchased in advance and the company’s existing supply arrangements. Customer concentration also declined. During the first half, ACM had one customer representing more than 10% of revenue, accounting for 12.7% of the mix. In the first half of 2025, three customers represented 49.9% of revenue. ACM Research, Inc (NASDAQ:ACMR) designs, develops and markets wet processing equipment for the semiconductor industry. The company focuses on advanced wafer cleaning technologies that address critical contamination-control requirements for logic, memory and advanced packaging applications. Since its founding in 2003, ACM Research has engineered modular platform tools that can be configured for a range of spin, scrub and batch cleaning processes. Its product portfolio encompasses single-wafer spin cleaning systems featuring high-purity megasonic capabilities, dynamic chemical scrubbing modules for post-CMP residue removal and batch-process cleaning equipment designed for high-throughput production environments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ACM Research Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue and shipments increased 36% year-over-year, with ECP and advanced packaging growing over 150%. Received orders for panel-level horizontal plating tools from two advanced packaging customers, marking a significant milestone in a potentially large growth area. Order book for the first half of 2026 increased over 100% year-over-year, indicating strong demand. Customer concentration improved significantly, with only one 10% customer (12.7% of revenue) compared to three customers (49.9%) in the prior year. Raised full-year 2026 revenue guidance to $1.125-$1.175 billion, implying 25-30% growth, and expects shipment growth to outpace revenue growth. Revenue from single-wafer cleaning, Tahoe, and semi-critical cleaning declined 14% year-over-year, though expected to rebound with new SPM product cycle. Gross margin decreased to 46.0% from 48.7% year-over-year, though still above the midpoint of the long-term target range. Global component shortages and longer lead times could impact shipment timing and revenue recognition in the second half of 2026. Operating expenses increased 23.9% year-over-year, with R&D expected to rise to 16-18% of sales in 2026. Cash used by operations was $6.4 million in the quarter, and the company expects to burn cash this year due to heavy capital expenditures. Warning! GuruFocus has detected 6 Warning Signs with ACMR. Is ACMR fairly valued? Test your thesis with our free DCF calculator. Q: What geographies are seeing the largest tool shipments today, and where do you expect the best growth opportunity as you scale up beyond China? A: CEO Dr. David Wang highlighted that in the first half of the year, they shipped close to 10 tools to Singapore, including to a packaging house and a foundry. He sees Singapore as a key opportunity for both front-end and packaging tools. The company is also building a demo lab in Oregon to attract more interest from US customers and showcase their differentiated technology globally. Q: Given the significant cash balance in the US ($300 million), what are the plans for using those proceeds? A: CEO Dr. David Wang stated that the cash demonstrates their determination and confidence in expanding sales activity outside mainland China, supporting their long-term goal of $1.5 billion in revenue from outside China. The funding will support activities in the US, Taiwan, Singapore, and Europe, where they see significant demand for their differentiated cleaning, plating, and new PCVD and furnace technologies. Q: Can you provide any guidance or expectations for advanced packaging equipment shipment growth for this year and next year? A: CEO Dr. David Wang noted that while they don't provide a specific number, the strong backlog and orders will ensure shipment growth outpaces revenue growth. He acknowledged a global component shortage that could impact the timing of shipments but remains confident in a strong year. He also highlighted the significant growth potential in cleaning and copper plating, driven by advanced packaging and HBM demand, and noted ACM's pioneering position in panel-level electroplating. Q: How should we think about the revenue timing for Q3 and Q4, given the strong first half and potential changes in shipment timing? A: CEO Dr. David Wang explained that orders in the first half increased more than 100% year-over-year, indicating real demand and a large backlog. While they are trying to increase capacity to deliver tools in Q3 and Q4, some deliveries may slip due to component supply constraints. He remains confident in the full-year guidance of 25-30% growth, which is why they raised the low end of the range. Q: What is the potential impact of rising component costs on gross margins, and can you pass these costs to customers? A: CEO Dr. David Wang acknowledged a global component shortage, particularly from Japan and Korea, but noted that they are switching to local suppliers where possible. CFO Mark McKechnie added that there is no change to their gross margin target of 42-48%, as they had stocked up on raw materials in anticipation of a heavy year. While some suppliers are delaying shipments, they are not significantly raising prices, so they are not currently at risk of pricing pressure. Q: Can you provide any initial commentary on 2027 visibility and what we should think about for next year? A: CEO Dr. David Wang stated that the China market is in a multi-year expansion, with many fabs opening this year and beyond. He cited Frost & Sullivan's projection that the China market will exceed $80 billion by 2029. He also noted that some orders received this year will flow into next year, and new platforms like track and PCVD will start contributing, making 2027 shape up to be a good growth year. Q: In terms of order strength by segment, which is the strongest: DRAM, HBM, or Logic? A: CFO Mark McKechnie noted that they did not break out orders by end market, but CEO Dr. David Wang added that they see strong demand in both memory and logic. The order strength is across all product categories, with a heavier emphasis on some of their newer products. Q: Regarding the new panel-level plating orders, when could the evaluation results come out, and what is the probability of receiving the first purchase order in the next 6-12 months? A: CEO Dr. David Wang expressed excitement about the panel-level packaging trend across Asia, including mainland China, Taiwan, Korea, and Singapore. He noted that ACM is prepared for both the 515x510mm and 310x310mm panel sizes, which are being led by Intel and TSMC approaches, respectively. He believes the market is validating their early investments and that they are well-positioned for this significant long-term growth opportunity. Q: Are you planning to build more manufacturing capacity outside of mainland China to support international orders? A: CEO Dr. David Wang confirmed that they have manufacturing capability in Korea, which is currently producing tools for the US market and will also support shipments to Taiwan and Singapore. He added that if revenue grows in the US or other regions, they would consider preparing a secondary manufacturing site. Q: How should we think about operating cash flows and capex for the year? A: CFO Mark McKechnie explained that the company is in a heavy growth mode, spending on capex for new production facilities and the Oregon demo center. While they will likely burn some cash this year, the long-term plan is to harvest the benefits of these investments over the next several years, resulting in a positive cash flow operation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 36% was primarily driven by the ECP and advanced packaging categories, which both increased more than 150% year-over-year, reflecting a successful transition into a broader multi-product company. Management attributes recent success in advanced packaging to a strategic decision made five years ago to invest in horizontal panel-level plating, anticipating a shift from wafer-level to panel-level packaging for AI applications. The company achieved a significant milestone by receiving orders for its panel-level horizontal plating tools from two customers, including a production order in China and an evaluation system for a new customer in Asia. Cleaning revenue experienced a 14% decline as the portfolio shifts toward newer SPM (Sulphuric Acid Peroxide Mixture) technologies, which are currently in the shipment phase rather than the revenue recognition phase. Customer concentration improved significantly, with only one customer representing more than 10% of revenue in the first half of 2026, compared to three such customers in the prior year period. The company is leveraging its proprietary horizontal plating architecture to address superior uniformity requirements for next-generation AI packaging, positioning itself as a first-mover in multiple regions. Operational execution remains focused on scaling capacity, with the first building at the Lingang facility in volume production and a second building expected to open later this year to support up to $3 billion in annual output. Full-year 2026 revenue guidance was narrowed to $1.125 billion to $1.175 billion, implying 25% to 30% growth, supported by a 105% year-over-year increase in first-half orders. Management expects shipment growth to outpace revenue growth in 2026, driven by the timing of tool qualifications and a heavy emphasis on new product cycles like SPM and furnace tools. The company anticipates its newer platforms, including Track and PECVD, will transition from evaluation to commercialization phases by year-end, driving production orders in 2027 and beyond. Global expansion strategy targets $1.5 billion in long-term revenue from outside Mainland China, supported by a $300 million U.S. cash balance and a new demo center in Oregon scheduled for late 2026. Guidance assumes a healthy backdrop for China Wafer Fab Equipment (WFE) spending, with management citing third-party estimates of the China market reaching $80 billion by 2029. Supply chain constraints for certain components, such as robots and sliders, are causing some delivery delays, though management noted that key suppliers have generally not increased prices. The company strengthened its global balance sheet to over $1 billion in net cash, providing a 'war chest' to demonstrate to global customers that ACM can support large-scale production orders. Inventory levels reached $783.1 million, largely consisting of raw materials and finished goods under evaluation, as the company stocks up to mitigate supply chain risks and support high growth. Management declined to provide specific details regarding the potential Hong Kong listing beyond the initial announcement made in April. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified Singapore as a key near-term growth hub, with nearly a dozen tools shipped to packaging houses and foundries there in the first half of the year. The Oregon demo lab is viewed as a critical tool for attracting interest from North American and European customers by providing a world-class cleanroom environment for testing. While declining to comment on specific customers, management noted that HBM packaging is driving significant demand for copper process steps and DRAM stacking. The company expects its new product cycles in furnace and PECVD to help it outgrow the general China WFE market as these tools gain traction in advanced logic and memory. Management stated they do not see a significant impact on gross margins from component price hikes, as they pre-purchased key parts at the end of last year. The company is not currently raising prices for its tools but is focused on managing supplier delivery timelines, which have extended from 4 months to 6 months in some cases. Tools for the U.S. and other international markets are currently being manufactured in Korea to support global deployment. Management is considering establishing secondary manufacturing sites in other regions if revenue growth outside China continues to scale as expected.