VECO

Kulicke and Soffa Industries, Inc. KLIC delivered solid third-quarter fiscal 2026 results, reflecting accelerating demand across semiconductor assembly markets. The company is benefiting from AI-led data-center investments, rising adoption of advanced packaging, improving memory demand and a broader recovery in traditional semiconductor applications.KLIC reported non-GAAP earnings of $1.20 per share, beating the Zacks Consensus Estimate of $1 by 20%. Revenues surged 122.6% year over year to $330.4 million and surpassed the consensus mark by 6.6%. Revenues also increased 36.2% sequentially. The strong quarterly performance, along with improving order visibility, indicates that multiple growth engines could support Kulicke and Soffa beyond the current semiconductor recovery. Rapid expansion of AI infrastructure remains one of the most important catalysts for Kulicke and Soffa. Growing AI workloads require increasingly sophisticated logic, memory, networking, storage and power-management semiconductors, generating demand for both advanced packaging and established wire-bonding technologies.Data centers require substantial volumes of chips assembled with conventional wire bonding for networking, communications, storage and power-management applications. Management noted that AI-driven data-center expansion is increasing requirements for its thermal-compression and wire-bonding solutions. This allows KLIC to benefit from AI infrastructure spending through both its newer advanced solutions and its large installed base of traditional bonding equipment.The strength was evident in the General Semiconductor business, where revenues surged 52.6% sequentially to $227.2 million in the fiscal third quarter. Although AI and data centers remain major catalysts, management is also witnessing a broader recovery in traditional semiconductor markets, which should diversify the company's growth trajectory. Increasing semiconductor complexity represents another major opportunity. High-performance logic and memory devices are increasingly adopting heterogeneous integration architectures that combine multiple dies and technologies within sophisticated packages.This transition directly benefits Kulicke and Soffa's Fluxless Thermo-Compression Bonding (TCB) solutions. Advanced Solutions revenues increased roughly 20% sequentially in the fiscal third quarter, setting another quarterly record. Management continues to expect Advanced Solutions revenues to exceed $100 million in fiscal 2026.KLIC is expanding Advanced Solutions manufacturing capacity to support roughly $400 million in annual TCB system sales. The increased production footprint should allow the company to address rising demand as heterogeneous integration becomes more mainstream. Improving memory conditions provide another favorable catalyst. Fiscal third-quarter memory revenues increased 8.8% sequentially to $34 million, following strong growth in the preceding quarter.KLIC currently has significant exposure to NAND packaging requirements. Management believes data centers have become the largest end application for global NAND production, suggesting that AI infrastructure investment is also indirectly benefiting the company's traditional memory business.The combination of recovering NAND capacity spending and emerging stacked-DRAM architectures could provide a broader growth opportunity as memory manufacturers increase investment in advanced assembly technologies. KLIC has gained a stellar 122.1% in the past year compared with the industry’s growth of 107%. It has outperformed peers like Veeco Instruments Inc. VECO and Axcelis Technologies, Inc. ACLS. While Veeco has gained 88.8%, Axcelis surged 52.6% during this period. One-Year KLIC Stock Price Performance Image Source: Zacks Investment Research Management's near-term outlook reinforces the positive demand picture. For the fiscal fourth quarter, Kulicke and Soffa expects revenues of approximately $375 million, implying healthy sequential growth. Non-GAAP earnings are expected to be $1.42 per share, plus or minus 10%.Demand visibility has also extended further than is typical for the company, with purchase orders extending into the second quarter of fiscal 2027. Management expects above-average demand conditions to persist through at least the first half of fiscal 2027. Kulicke & Soffa remains well-positioned to capitalize on favorable long-term semiconductor industry trends. Expanding opportunities in advanced packaging, AI infrastructure, automotive electrification and high-performance computing are expected to remain key growth drivers for the company in the coming years. Consequently, investors are likely to profit if they bet on this Zacks Rank #1 (Strong Buy) company now. 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 Kulicke and Soffa Industries, Inc. (KLIC) : Free Stock Analysis Report Veeco Instruments Inc. (VECO) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Head of Investor Relations - Alex Delacroix Chief Executive Officer - Bill Miller Chief Financial Officer - John Kiernan Operator: Greetings, and welcome to the Veeco Second Quarter 2026 Earnings Call. [Operator Instructions] It is now my pleasure to introduce your host, Alex Delacroix, Head of Investor Relations. Thank you. You may begin. Alex Delacroix: Thank you, and good afternoon, everyone. Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and John Kiernan, our Chief Financial Officer. The earnings release and slide presentation to accompany today's webcast is available on the Veeco website. To the extent that this call discusses expectations for future revenues, future earnings, the timing and expected benefits of the proposed transaction with Axcelis, market conditions or otherwise make statements about the future. These forward-looking statements are based on management's current expectations and are subject to the risks and uncertainties that could cause actual results to differ materially from the statements made. These risks are discussed in detail in our Form 10-K, annual report and other SEC filings. Veeco does not undertake any obligation to update any forward-looking statements, including those made on this call to reflect future events or circumstances after the date of such statements. Unless otherwise noted, management will address non-GAAP financial results. We encourage you to refer to our reconciliation between GAAP and non-GAAP results, which you can find in our press release and at the end of the earnings presentation. Please note that we will not be addressing questions related to our pending merger with Axcelis. We urge you to read the joint proxy statement relating to the transaction with Axcelis. With that, I would now like to hand the call over to our CEO, Bill Miller. William Miller: Thank you, Alex, and thank you, everyone, for joining us today. We believe the industry is at an important inflection point where AI-driven investments are accelerating demand for enabling semiconductor technologies at an unprecedented pace. Veeco is uniquely positioned at the intersection of the fastest-growing segments of WFE, high-performance computing, advanced packaging and silicon photonics, creating a significant opportunity for accelerated multiyear growth. Let me review our top 4 key takeaways from the quarter. First, we had strong quarterly performance, exceeding our guidance ranges and Street's expectations. Revenue was $193 million. Non-GAAP operating income was $23 million and non-GAAP diluted EPS was $0.33. Second, order momentum accelerated across all major end markets. During the second quarter, we secured $200 million in advanced packaging orders for wet processing and lithography systems, strengthening our visibility into 2027. Third, we're focused on executing our growth opportunities through a manufacturing expansion plan to meet customers' requirements. We're making deliberate investments ahead of revenue in the second half of 2026 to meet the demands of 2027. Lastly, Veeco is achieving meaningful commercial validation with our next-generation nanosecond annealing system, hitting major milestones in our evaluation program and securing a follow-on order. We're excited about the compelling long-term growth runway supported by AI infrastructure and high-performance computing. We remain focused on executing our strategy and delivering sustained value for our shareholders. Before moving on, I'll briefly note that the merger with Axcelis continues to progress as planned with shareholder approval from both companies and all regulatory clearances secured other than China antitrust approval. We continue to target a second half 2026 closing. Interaction among integration teams remains on schedule and further supports our conviction in the compelling strategic fit and potential long-term value creation of the combination. As we move to the next slide, I'll highlight Veeco's role in our largest market, semiconductor manufacturing and share our served available market opportunity through 2030. The accelerating investment in AI infrastructure and high-performance computing is driving a fundamental shift in leading-edge enabling technologies. This trend aligns well with Veeco's differentiated portfolio and positions us to benefit from the industry's evolving growth opportunities. I'll begin with advanced packaging, which is rapidly becoming a larger and increasingly important part of our business through our wet processing and lithography portfolio. The demand remains robust as AI-driven investments accelerate the adoption of heterogeneous integration and increasingly complex 2.5 and 3D architectures. -- building on the strong momentum we experienced in the first quarter, activity among leading customers continues to strengthen and provides us with a unique level of visibility into customer expansion plans. As a result, we have significant backlog for 2027 and our customers' forecasted road maps reinforce our confidence in the long-term growth trajectory of the business. As one example, we are actively engaged with a Tier 1 foundry on a panel processing opportunity, and we're encouraged by the progress. Looking longer term, we expect advanced packaging to become an increasingly meaningful contributor to Veeco's growth as we gain share in a growing market that we project will approach $1 billion by 2030. To support this growth, we're expanding our manufacturing footprint in-house and with our outsourced partners in Southeast Asia. In the front-end wafer manufacturing process, we serve both advanced logic and foundry as well as memory customers. In logic and foundry, we have long-standing and trusted customer relationships and remain the production tool of record at all 3 Tier 1 customers for our laser spike annealing system, driving repeat business. We're also pleased with our progress for our next-generation nanosecond annealing system and recently announced that a Tier 1 customer successfully completed their evaluation and placed a follow-on order for a second system to ship in the second half of 2026. We also announced that the third Tier 1 logic customer received an NSA evaluation tool. Veeco has now successfully engaged all 3 Tier 1 logic customers with our NSA technology, and we continue working closely with them to support future road maps. Now I'll discuss the memory semiconductor market, which represents a significant long-term growth opportunity as AI-driven compute architecture accelerates demand for DRAM and NAND technologies. These technology transitions are creating new thermal processing and material requirements that align well with Veeco's differentiated annealing capabilities. The memory industry is at the early stages of adopting laser-based technologies for annealing applications. We continue to make solid progress with leading memory customers, including serving as the production tool of record at a Tier 1 high-bandwidth memory manufacturer that is accelerating their investments in 2026. We're also advancing an LSA evaluation at a second Tier 1 DRAM customer and are excited about the potential for additional follow-on orders in the 2027, '28 time frame. Customer engagement continues to expand with a third DRAM customer with potential to enter an evaluation agreement over the coming quarters. Furthermore, we're encouraged by strong engagement with several NAND customers who are exploring applications for our LSA and NSA platforms, which are continuing to advance well. Overall, our annealing platform continues to perform exceptionally well. And in the second quarter, we delivered record revenue across our LSA and NSA product lines. Looking ahead, we project an annealing SAM of approximately $1.3 billion by 2030 as advanced logic and memory devices become increasingly complex and require more precise thermal processing solutions. Our memory market opportunity continues to advance through our ion beam deposition technology with multiple IBD300 systems under evaluation for advanced DRAM applications, such as bit line metallization. These evaluations continue to progress with high customer engagement. Collectively, these engagements strengthen our position in the memory market and provide additional avenues for future growth. Lastly, Veeco continues to be a leader in ion beam deposition for EUV mask blanks and is well positioned as the industry advances towards high-NA lithography. We have expanded the use of our ion beam technology for EUV pellicles, which protect defect-free masks and improve productivity as EUV utilization scales. We continue to win production business at a Tier 1 foundry and engage new customers for EUV pellicles. More broadly, we see an ion beam deposition SAM opportunity of approximately $500 million by 2030, driven by adoption of our IBD300 platform for low-resistance metals and our leadership position in deposition for EUV applications. On the next slide, I'll discuss our compound semiconductor market and the projected served available market opportunity through 2030. Our outlook remains supported by the secular growth of AI infrastructure and silicon photonics, optical connectivity and power efficiency. We believe these trends are driving a significant inflection in compound semiconductors, where adoption is accelerating across both optical networking and power applications, which continues to create an increasingly attractive opportunity for Veeco. In silicon photonics, we project a $700 million SAM by 2030 for our role in the manufacturing of indium phosphide lasers. The rapidly evolving landscape of AI data centers is driving demand across our SPECTOR IBD system, WaferStorm and etch for wet processing solutions and Lumina MOCVD platform. We continue to see engagement with these customers as they move toward large-scale deployments. I'll provide greater detail in our role in silicon photonics on the next slide. In the other photonics category, we project $550 million in SAM by 2030. This includes opportunities for red MicroLEDs, low earth orbit satellites and AR/VR applications. In GaN Power, we project $250 million in SAM by 2030, supported by long-term trends tied to AI data center power efficiency, electrification and high-power density applications. We remain encouraged by our progress with a leading power IDM customer, where our Propel®300 platform continues to advance towards production. Following the previously announced pilot line order, we believe we're well positioned to participate in future capacity expansions. Veeco is also a critical member in the imec 300-millimeter GaN Power Consortium program to advance power electronics manufacturing alongside other industry leaders. On the next slide, I'll dive deeper into the role we play in silicon photonics. Within the compound semiconductor market, we continue to benefit from the growing demand tied to AI, particularly through our exposure to silicon photonics and the indium phosphide lasers used for optical connectivity applications. Industry investment remains focused on the hyperscalers need for higher bandwidth and optical connectivity across increasingly large AI data clusters. As bandwidth requirements continue to accelerate, the industry is increasingly focused on overcoming the copper wall, where traditional electrical interconnects become less efficient at supporting higher speed data transmission. At the same time, hyperscalers continue to advance optical networking architectures, including evolution of EML pluggables, silicon photonics pluggables as well as the longer-term solutions of near package and co-packaged optics. Collectively, these trends are driving broader adoption of optical connectivity throughout the AI infrastructure ecosystem. These architectures increasingly rely on indium phosphide laser technologies. Our portfolio spans multiple steps of the laser manufacturing process, including epitaxy, wet processing and laser facet coating. Given our engagement with our customers, we continue to believe this opportunity represents at least $2 billion over the coming years. Let me briefly touch on each of our products in the laser manufacturing space. First, the MOCVD epitaxy steps play a crucial role, and we're continuing to penetrate the market with our Lumina MOCVD indium phosphide platform as leading photonics customers expand capacity. As announced in today's press release, a global leader in optical and photonics technologies has selected our Lumina+ MOCVD System, to fabricate indium phosphide lasers in the datacom industry. This system offers the largest batch size in the MOCVD industry, best-in-class throughput and lowest cost per wafer. Lumina+ also has the ability to deposit high-quality epitaxial layers on indium phosphide wafers of any size, bringing much needed scale to the optical transceiver industry. Additionally, we're a market leader with our WaferEtch and WaferStorm wet processing technologies for advanced etching and surface preparation. Lastly, we're a market leader with our SPECTOR ion beam deposition tool for the critical laser facet coating step. From ongoing customer engagements, we believe our IBD technology remains differentiated from traditional approaches as the industry transitions to higher powered lasers, which demand stricter film specifications. In order to capture this opportunity in silicon photonics, we're executing our product road maps to meet our customers' needs and are spending ahead of revenue. With that, I'll turn the call over to John to review the financial results. John Kiernan: Thank you, Bill. Revenue came in at $193 million, above the midpoint of our guidance in previous quarter. For the second quarter, our semiconductor revenue was $131 million, an increase of 20% from the prior quarter and comprising 68% of revenue. It was largely driven by laser annealing systems to leading edge foundry logic and memory customers and wet processing systems for advanced packaging. For full year 2026, we expect semiconductor revenue to grow by more than 10% compared to the prior full year. This performance is driven primarily by additional sales to leading memory, foundry logic and EUV customers serving AI and high-performance computing applications. In 2027, building on this momentum, we expect revenue growth to meaningfully accelerate, particularly in advanced packaging. Compound semiconductor revenue for the second quarter totaled $21 million, a 9% increase from the prior quarter, totaling 11% of revenue. For full year 2026, we expect compound semiconductor revenue to approximately double versus full year 2025. Growth is primarily driven by our Lumina® MOCVD and SPECTOR IBD systems for silicon photonics. Looking ahead in 2027, we expect revenue growth to accelerate driven by backlog for these tools. Turning to data storage. Revenue for the second quarter was $22 million, a 117% increase from the prior quarter, representing 11% of revenue. We expect revenue to double year-over-year in 2026. Demand remains robust, supported by customer investments in next-generation storage technologies and capacity expansion initiatives. We are booked well into 2027 and continue to engage closely with customers on future technology inflections, particularly HAMR-based production road maps. The combination of strong backlog, favorable industry dynamics and deep customer collaboration provides us with confidence in growth in this market as we move into 2027. Lastly, scientific and other quarterly revenue remained flat at $20 million, comprising 10% of revenue. Turning to quarterly revenue by region. Revenue from the U.S. accounted for 31% of revenue, an increase from the prior quarter, primarily from advanced semiconductor customers. The Asia Pacific region, excluding China, was 36%, a decrease from the previous quarter. Our China portion was 25% of revenue, an increase from the prior quarter. EMEA and the rest of the world accounted for 8% of revenue. Turning to the second quarter non-GAAP operating results. We had strong performance with our bottom line exceeding our previously provided guidance ranges and Street expectations. Second quarter gross margin came in at 39.5% and operating expenses totaled $53.3 million. Income tax expense was approximately $3 million, resulting in an effective tax rate of approximately 12%. Net income was approximately $22 million and diluted EPS was $0.33 on 67 million shares. Now moving to the balance sheet and cash flow highlights. We ended the quarter with cash and short-term investments of $429 million, an increase of $46 million. From a working capital perspective, our accounts receivable decreased by $3 million to $148 million. Inventory increased by $10 million to $292 million and accounts payable decreased by $3 million to $57 million. Customer deposits increased by $45 million to $114 million. Cash flow from operations totaled $51 million and CapEx totaled $4 million during the quarter. Next, I'll turn to our third quarter and full year 2026 non-GAAP outlook. Third quarter revenue is expected to be between $200 million and $220 million. Gross margin is expected to be between 41% and 42%. We expect OpEx between $57 million and $58 million, net income between $23 million and $33 million and diluted EPS between $0.35 and $0.49 on 67 million shares. As discussed earlier, demand across our key markets remains exceptionally strong with many customers providing forecasts that extend well into the future. This increasing visibility is translating into robust order momentum. And today, a significant portion of our anticipated 2027 revenue is already represented in backlog. To capitalize on these opportunities, we remain intensely focused on executing our manufacturing ramp and investing ahead of expected revenue. During 2027, we plan to more than double capacity in advanced packaging and silicon photonics. These investments include expanding manufacturing capacity through a combination of internal production and strategic outsourcing partnerships, adding and training personnel and expanding our supply chain to support customer demand. While we view these investments as critical to capturing significant long-term growth opportunity, they will have a near-term impact. On a full year 2026 basis, we expect approximately $10 million of incremental operating expenses and a gross margin impact of roughly 75 basis points associated with these growth initiatives. Given the strength of our order momentum, improved customer visibility and actions we are taking to support future growth, we are updating our full year 2026 non-GAAP outlook. We now expect full year revenue to be between $780 million and $810 million. Gross margin is expected to be between 40% and 42%. Operating expenses are expected to range from $215 million to $225 million. We expect non-GAAP diluted earnings per share of $1.36 to $1.61 based on approximately 67 million shares. Overall, we are entering this next phase of growth from a position of strength. The combination of increasing customer visibility, strong order momentum and expanding opportunities tied to AI infrastructure gives us confidence in our long-term outlook. We believe Veeco is uniquely positioned to capitalize on these opportunities, deliver sustainable profitable growth and create substantial value for shareholders. I would now like to turn the call over to the operator for Q&A. Operator: [Operator Instructions] Given the pending merger with Axcelis, Veeco management will be addressing questions related to the traction. [Operator Instructions] Our first question is from Denis Pyatchanin with Needham & Company, LLC. Denis Pyatchanin: So it looks like your 2026 annual revenue guidance was lifted by about $25 million, but the non-GAAP EPS outlook was lowered. And from what looks like gross margin mix and higher OpEx. Could we assume that the gross margin impact is from the $200 million order for the advanced packaging? And in terms of the OpEx increase, can you tell us more about what kind of investments you'll be making there? John Kiernan: Yes, sure, Dennis. So the $200 million order in advanced packaging is principally for delivery in 2027. So that's not having an impact on the gross margins for this year and the gross margin going forward for the rest of this year. So what we did highlight in our prepared remarks here is that we are investing ahead of that increased business that we're expecting in advanced packaging as well as increased business in the silicon photonics that we highlighted those orders earlier in the year. So we're adding cost and we're adding costs to be able to increase our manufacturing capacity that we highlighted in our prepared remarks is more than doubling the capacity. And that's both by increasing our internal manufacturing capability here on the East Coast, where we manufacture some of those products as well as expanding partnerships with contract manufacturers in Southeast Asia. So the one-time setup costs to get the capacity in place and to bring the contract manufacturers on board, the hiring of additional and training of additional employees to meet those customer demands to build the tools, install the tools and the like there. So that's on the one end. On the other end, we're also increasing our OpEx. We said it's about a $10 million increase over our planned OpEx in the second half of the year to support those activities and about a 75 basis points impact on the full year gross margin. So that's really what the impact was to bringing down the gross margin percentage for the balance of the year compared to what was previously forecasted and increased our operating expenses compared to what was previously forecasted. Denis Pyatchanin: That's really helpful. And then for my second question, with the industry in an up cycle, you have both these optical networking orders shipping, the data storage-related revenue coming in and now the advanced packaging systems as well. Could you maybe give us like a recap or an update on when these will begin shipping, like how the revenue ramp profile will look? And if there were any changes from prior expectations for some of these programs? William Miller: Yes, Dennis. I would say most of this is really hitting -- really starting to ramp beginning a little bit in the end of the fourth quarter of '26, but hitting in -- starting in Q1 and then probably getting more up to speed in Q2 of '27. So it's really ramping. The majority of it is in '27. John Kiernan: For both -- for all of those for. William Miller: Silicon photonics ramp as well as advanced packaging coming online in that time frame. Denis Pyatchanin: Great. And one more, if I may. I think you mentioned that customers are providing outputs well into the future. How far would you say on average, they're giving you visibility right now? And has this visibility increased over the last 3 months? John Kiernan: I would say our visibility has been increasing. We have very strong -- much stronger visibility, I would say, than historically we've had into 2027 at this point, midway through 2026. And customers are actually sharing forecasts out beyond '27, kind of some long-range forecasts that they wouldn't normally be sharing. Operator: At this time, we have no further questions, and I would like to turn the call over to Bill Miller for closing remarks. William Miller: Thank you. Veeco delivered another strong quarter, exceeding expectations and continuing to build momentum across the business. We remain well positioned to capitalize on AI investments, which are driving strong customer engagement and increased visibility into 2027. At the same time, we continue to make steady progress toward completing our merger with Axcelis, reinforcing our confidence in the significant potential value creation. We remain focused on our execution, and we're excited about the opportunities ahead. Thank you for our shareholders and our Veeco United team for continued support and commitment. Have a great evening. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Veeco Instruments, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Veeco Instruments wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. 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. Veeco (VECO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Veeco Instruments Inc. VECO used its second-quarter 2026 earnings call to frame 2027 as the payoff period for accelerating orders in advanced packaging, silicon photonics and other AI-linked markets. Management focused on the spending required to more than double capacity and convert backlog into growth next year. CEO William Miller said that order momentum accelerated across every major end market. Veeco secured $200 million of advanced packaging orders for wet processing and lithography systems, strengthening its backlog and visibility into 2027. Miller said that AI infrastructure and high-performance computing are increasing demand for complex packaging and optical connectivity. CFO John Kiernan added that customers are sharing forecasts beyond 2027, providing stronger visibility than Veeco has historically received. Non-GAAP earnings of $0.33 per share topped the Zacks Consensus Estimate of $0.26. Revenues of $193.5 million exceeded the consensus mark of $180 million. Veeco Instruments Inc. price-consensus-eps-surprise-chart | Veeco Instruments Inc. Quote Kiernan said that Veeco plans to more than double capacity in advanced packaging and silicon photonics during 2027. The expansion combines internal manufacturing, outsourced production in Southeast Asia, employee training and supply-chain development. Those actions will weigh on near-term profitability. Veeco expects about $10 million of incremental operating expenses in 2026 and roughly 75 basis points of full-year gross-margin pressure tied to the program. Third-quarter guidance calls for revenues of $200-$220 million and non-GAAP earnings of $0.35-$0.49 per share. Revised full-year guidance is $780-$810 million in revenues and $1.36-$1.61 in non-GAAP earnings. Semiconductor revenues reached $131 million, up 20% sequentially and representing 68% of sales. Kiernan said that laser annealing demand and wet processing for advanced packaging drove the increase. Compound semiconductor revenues rose 9% sequentially to $21 million. Management expects it to approximately double in 2026, supported by Lumina MOCVD and SPECTOR ion beam deposition systems for silicon photonics. Data storage revenues increased 117% sequentially to $22 million. Kiernan said that the business is booked well into 2027, supported by next-generation storage investment and HAMR production road maps. Miller said that Veeco delivered record quarterly revenues across its laser spike and nanosecond annealing product lines. A Tier 1 logic customer completed an NSA evaluation and ordered a second system for shipment in the second half of 2026. Veeco is now engaged with all three Tier 1 logic customers on NSA technology. It also remains the production tool of record for laser spike annealing at all three, while expanding DRAM and NAND evaluations. In silicon photonics, Miller highlighted a Lumina+ system selection by a global optical technology leader. Management continues to size Veeco’s opportunity across epitaxy, wet processing and laser facet coating at least $2 billion over the coming years. A Needham analyst asked whether the advanced packaging order caused the weaker margin outlook. Kiernan said that the $200 million order is principally for 2027 delivery and is not driving current-year product margin pressure. Instead, the pressure reflects setup costs for capacity, contract manufacturing, hiring, training and installation resources. The spending is intended to prepare manufacturing for the larger 2027 revenue base. When asked about timing, Miller said that silicon photonics and advanced packaging should begin ramping late in the fourth quarter of 2026, build in the first quarter of 2027 and approach full speed in the second quarter. Management remained confident on demand but disciplined on the work required to serve it. The priority is converting backlog and customer forecasts into manufacturing readiness without losing execution control. Miller also said that the Axcelis merger remained targeted for a second-half 2026 close, with shareholder approvals secured and China antitrust clearance still outstanding. VECO carries a Zacks Rank #3 (Hold) at present, indicating a neutral near-term earnings-estimate revision signal. It has a Value Score of F, a Growth Score of F, a Momentum Score of F and a VGM Score of F, the weakest grade in the A-to-F Style Scores framework. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The current mix does not provide favorable Style Score confirmation. However, the Zacks Rank can change as analysts revise estimates after the just-reported results, so the signal should be monitored rather than treated as fixed. 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 Veeco Instruments Inc. (VECO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Veeco Instruments VECO reported non-GAAP earnings of 33 cents per share for the second quarter of 2026, beating the Zacks Consensus Estimate of 26 cents by 26.9%. However, earnings declined 8.3% year over year from 36 cents per share.Net sales for the second quarter of 2026 totaled $193.48 million, surpassing the Zacks Consensus Estimate by 7.49% and increasing 16.48% year over year from $166.1 million.Robust AI-driven demand, strong order activity, deeper customer engagement and continued execution of its manufacturing expansion strategy supported revenue growth.Over the last four quarters, VECO has surpassed the consensus estimate for EPS two times, while beating twice, with an average surprise of 14.55%. Veeco Instruments Inc. price-consensus-eps-surprise-chart | Veeco Instruments Inc. Quote GAAP gross profit increased to $74.8 million from $68.7 million in the year-ago quarter. However, GAAP gross margin contracted 270 basis points year over year to 38.7%, while non-GAAP gross margin declined 310 basis points to 39.5%. Research and development expenses increased 5.6% year over year to $33.3 million, while selling, general and administrative expenses rose 15.4% to $27.6 million. As a result, GAAP operating income slipped to $11.9 million from $12.4 million, whereas non-GAAP operating income remained flat at $23.1 million. Veeco ended the quarter with cash and cash equivalents of $214.5 million compared with $163.5 million at the end of 2025. Short-term investments declined sequentially to $214.9 million from $226.8 million. Accounts receivable increased sequentially to $148.4 million from $110.7 million, inventories rose to $292.5 million from $275.3 million and contract liabilities increased to $123.7 million from $74.2 million. Long-term debt edged up sequentially to $226.5 million from $226 million. For the third quarter of 2026, Veeco expects revenues between $200 million and $220 million. It projects GAAP earnings in the range of 20-34 cents per share and non-GAAP earnings between 35 cents and 49 cents per share. For 2026, the company expects revenues between $780 million and $810 million. It forecasts GAAP earnings in the range of 78 cents to $1.02 per share and non-GAAP earnings between $1.36 and $1.61 per share. VECO currently carries a 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 123% 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 107.9% 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 30 days, indicating a rise of 28.9% year over year. Analog Devices shares have surged 39.2% 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 Veeco Instruments Inc. (VECO) : 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

This article first appeared on GuruFocus. Revenue: $193 million, exceeding guidance and Street expectations. Non-GAAP Operating Income: $23 million. Non-GAAP Diluted EPS: $0.33. Gross Margin: 39.5%. Operating Expenses: $53.3 million. Net Income: Approximately $22 million. Cash and Short-Term Investments: $429 million, an increase of $46 million. Cash Flow from Operations: $51 million. CapEx: $4 million. Semiconductor Revenue: $131 million, up 20% from the prior quarter, comprising 68% of revenue. Compound Semiconductor Revenue: $21 million, up 9% from the prior quarter, comprising 11% of revenue. Data Storage Revenue: $22 million, up 117% from the prior quarter, comprising 11% of revenue. Scientific and Other Revenue: $20 million, flat, comprising 10% of revenue. Advanced Packaging Orders: $200 million secured during the quarter. Third-Quarter 2026 Revenue Guidance: Expected between $200 million and $220 million. Third-Quarter 2026 Gross Margin Guidance: Expected between 41% and 42%. Third-Quarter 2026 Diluted EPS Guidance: Expected between $0.35 and $0.49. Full-Year 2026 Revenue Guidance: Updated to between $780 million and $810 million. Full-Year 2026 Gross Margin Guidance: Expected between 40% and 42%. Full-Year 2026 Diluted EPS Guidance: Expected between $1.36 and $1.61. Warning! GuruFocus has detected 5 Warning Sign with VECO. Is VECO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veeco Instruments Inc (NASDAQ:VECO) delivered strong Q2 2026 results, with revenue of $193 million, non-GAAP operating income of $23 million, and non-GAAP diluted EPS of $0.33, all exceeding guidance and Street expectations. Order momentum accelerated across all major end markets, including securing $200 million in advanced packaging orders for wet processing and lithography systems, strengthening visibility into 2027. The next-generation nanosecond annealing (NSA) system achieved major milestones, with a Tier 1 customer completing evaluation and placing a follow-on order, and all three Tier 1 logic customers now engaged with the technology. The company is well-positioned in high-growth markets tied to AI infrastructure, including advanced packaging, silicon photonics, and memory, with a projected served available market (SAM) of approximately $1.3 billion for annealing and $700 million for silicon photonics by 2030. Full-year 2026 revenue guidance was raised to $780-$810 million, reflecting strong demand and improved customer visibility, with expectations for meaningful acceleration in 2027. The company is investing ahead of revenue, with approximately $10 million in incremental operating expenses and a 75 basis point gross margin impact in 2026, which will pressure near-term profitability. Full-year 2026 non-GAAP EPS guidance was lowered to $1.36-$1.61, reflecting the impact of higher operating expenses and gross margin dilution from growth initiatives. The pending merger with Axcelis remains subject to China antitrust approval, creating uncertainty around the closing timeline and potential integration risks. Gross margin in Q2 2026 was 39.5%, below the company's long-term target, and is expected to remain in the 40%-42% range for the full year, indicating ongoing margin pressure. The company faces execution risks in ramping manufacturing capacity, including expanding internal production and outsourcing partnerships in Southeast Asia, which could lead to operational challenges or delays. Q: The 2026 annual revenue guidance was lifted by about $25 million, but the non-GAAP EPS outlook was lowered. Can we assume the gross margin impact is from the $200 million advanced packaging order, and what kind of investments are driving the OpEx increase?A: John Kiernan (CFO) clarified that the $200 million advanced packaging order is principally for delivery in 2027, so it does not impact this year's gross margins. The lowered EPS outlook is due to deliberate investments ahead of revenue to support growth in advanced packaging and silicon photonics. This includes expanding internal manufacturing capacity on the East Coast, bringing on contract manufacturers in Southeast Asia, and hiring/training personnel. The company expects approximately $10 million in incremental operating expenses and a 75 basis point impact on full-year gross margin associated with these growth initiatives. Q: With the industry in an upcycle, can you provide an update on when the optical networking orders, data storage revenue, and advanced packaging systems will begin shipping and how the revenue ramp profile will look?A: William Miller (CEO) stated that the revenue ramp will begin slightly in the fourth quarter of 2026, but will primarily hit in Q1 2027 and gain momentum in Q2 2027. The majority of the revenue from silicon photonics and advanced packaging is expected to come online in 2027. Q: How far on average are customers providing visibility, and has this visibility increased over the last three months?A: William Miller (CEO) noted that visibility has been increasing and is much stronger than historically into 2027 at this point midway through 2026. Customers are sharing forecasts beyond 2027, including long-range forecasts they wouldn't normally share, reflecting the strong demand environment. Q: Can you provide more detail on the $200 million in advanced packaging orders secured during the quarter?A: William Miller (CEO) highlighted that the company secured $200 million in advanced packaging orders for wet processing and lithography systems during Q2, strengthening visibility into 2027. The demand is driven by AI-driven investments accelerating the adoption of heterogeneous integration and increasingly complex 2.5D and 3D architectures. The company is actively engaged with a Tier 1 foundry on a panel processing opportunity and expects advanced packaging to approach a $1 billion market by 2030. Q: What is the status of the next-generation nanosecond annealing (NSA) system and its commercial validation?A: William Miller (CEO) reported that a Tier 1 customer successfully completed their evaluation and placed a follow-on order for a second NSA system to ship in the second half of 2026. Additionally, the third Tier 1 Logic customer received an NSA evaluation tool, meaning Veeco has now successfully engaged all three Tier 1 Logic customers with NSA technology. The company also delivered record revenue across its LSA and NSA product lines in Q2. Q: What is the progress in the memory market, particularly with DRAM and NAND customers?A: William Miller (CEO) stated that Veeco is the production tool of record at a Tier 1 high-bandwidth memory manufacturer that is accelerating investments in 2026. The company is advancing an LSA evaluation at a second Tier 1 DRAM customer with potential for follow-on orders in 2027-2028, and a third DRAM customer may enter an evaluation agreement in coming quarters. There is also strong engagement with several NAND customers exploring LSA and NSA applications. The projected annealing SAM is approximately $1.3 billion by 2030. Q: Can you elaborate on the silicon photonics opportunity and the recent Lumina Plus MOCVD order?A: William Miller (CEO) announced that a global leader in optical and photonics technologies selected the Lumina Plus MOCVD system to fabricate Indium Phosphide lasers for the datacom industry. The system offers the largest batch size in the MOCVD industry, best-in-class throughput, and lowest cost per wafer. The company projects a $700 million SAM by 2030 for its role in manufacturing Indium Phosphide lasers, with the overall opportunity representing at least $2 billion over the coming years. Q: What is the outlook for the data storage segment, and what is driving the growth?A: John Kiernan (CFO) reported that data storage revenue was $22 million in Q2, a 117% increase from the prior quarter, and expects revenue to double year-over-year in 2026. The company is booked well into 2027, supported by customer investments in next-generation storage technologies and capacity expansion initiatives, particularly around HAMR-based production roadmaps. Q: What is the status of the merger with Axcelis and the expected closing timeline?A: William Miller (CEO) noted that the merger continues to progress as planned, with shareholder approval from both companies and all regulatory clearance secured other than China antitrust approval. The company continues to target a second-half 2026 closing, and integration teams remain on schedule, reinforcing confidence in the strategic fit and potential long-term value creation. Q: Can you provide more details on the full-year 2026 guidance and the expected impact of growth investments?A: John Kiernan (CFO) provided updated full-year 2026 non-GAAP guidance: revenue between $780 million and $810 million, gross margin between 40% and 42%, operating expenses between $215 million and $225 million, and diluted EPS between $1.36 and $1.61. The company expects approximately $10 million of incremental operating expenses and a 75 basis point gross margin impact associated with growth initiatives, including more than doubling capacity in advanced packaging and silicon photonics during 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Veeco Instruments Inc.? Here are five stocks we like better. Veeco exceeded second-quarter guidance with $193 million in revenue and non-GAAP EPS of $0.33, prompting the company to raise its full-year 2026 revenue outlook to $780 million–$810 million. Advanced-packaging demand is strengthening: Veeco booked $200 million in orders that improve visibility into 2027 and plans to more than double related manufacturing capacity, though the expansion will add about $10 million in second-half 2026 expenses and reduce full-year gross margin by roughly 75 basis points. Growth is broadening across AI-related markets, with semiconductor revenue up 20% sequentially, compound-semiconductor revenue expected to double in 2026, and data-storage revenue up 117% sequentially. Veeco also continues targeting the Axcelis merger’s closing in the second half of 2026, pending China antitrust approval. Veeco Instruments (NASDAQ:VECO) reported second-quarter results above its guidance range, citing accelerating demand across semiconductor, advanced-packaging and silicon-photonics markets tied to AI infrastructure and high-performance computing. Revenue for the quarter was $193 million, while non-GAAP operating income totaled $23 million and non-GAAP diluted earnings per share were $0.33, Chief Executive Officer Bill Miller said. Chief Financial Officer John Kiernan said revenue exceeded the midpoint of the company’s prior guidance. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Management also raised its full-year 2026 revenue outlook to a range of $780 million to $810 million. However, the company said planned investments to expand manufacturing capacity would affect near-term operating expenses and gross margin. Veeco secured $200 million in advanced-packaging orders during the second quarter for wet-processing and lithography systems, Miller said. The orders strengthen the company’s visibility into 2027, though Kiernan said they are principally scheduled for delivery next year and will not affect 2026 gross margins. → 3 Drone Stocks That Should Soar After the Summer Slump The company is investing in manufacturing capacity ahead of anticipated growth in advanced packaging and silicon photonics. Kiernan said Veeco plans to more than double capacity in those areas during 2027 through internal production expansion, outsourcing partnerships in Southeast Asia, personnel additions and supply-chain expansion. These efforts are expected to add approximately $10 million in operating expenses during the second half of 2026 and reduce full-year gross margin by roughly 75 basis points, according to Kiernan. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Miller said shipments related to the growth programs are expected to begin ramping modestly late in the fourth quarter of 2026, with a larger ramp beginning in the first quarter and gaining momentum in the second quarter of 2027. Veeco projects its advanced-packaging served available market could approach $1 billion by 2030. The company said it is also working with a Tier 1 foundry on a panel-processing opportunity. Second-quarter semiconductor revenue totaled $131 million, up 20% from the prior quarter and representing 68% of company revenue. Kiernan attributed the growth largely to laser annealing systems sold to leading-edge foundry, logic and memory customers, as well as wet-processing systems for advanced packaging. Veeco expects semiconductor revenue to increase by more than 10% in full-year 2026 compared with 2025. Management expects growth to accelerate in 2027, particularly in advanced packaging. The company said it recorded record quarterly revenue across its Laser Spike Annealing and Nanosecond Annealing product lines. Veeco remains the production tool of record for its Laser Spike Annealing systems at all three Tier 1 logic customers, Miller said. For its next-generation Nanosecond Annealing platform, a Tier 1 customer completed an evaluation and placed a follow-on order for a second system scheduled to ship in the second half of 2026. A third Tier 1 logic customer also received an evaluation tool, meaning Veeco has now engaged all three Tier 1 logic customers with the technology. In memory, Veeco said it is the production tool of record at a Tier 1 high-bandwidth-memory manufacturer that is accelerating investment in 2026. The company is also advancing a Laser Spike Annealing evaluation at a second Tier 1 DRAM customer, with potential follow-on orders in 2027 and 2028. Compound-semiconductor revenue was $21 million, up 9% sequentially and accounting for 11% of total revenue. Veeco expects full-year 2026 compound-semiconductor revenue to approximately double from 2025, driven by its Lumina MOCVD and Spector ion-beam deposition systems for silicon photonics. The company announced that a global optical and photonics technology company selected its Lumina+ MOCVD system for fabrication of indium phosphide lasers used in datacom applications. Miller said Veeco sees a silicon-photonics opportunity of at least $2 billion over the coming years, based on customer engagements. Data-storage revenue rose 117% from the prior quarter to $22 million, representing 11% of revenue. Veeco expects revenue in the market to double year over year in 2026 and said it is booked well into 2027. The company cited customer investments in next-generation storage technology and capacity expansion, including engagement around heat-assisted magnetic recording production roadmaps. U.S. revenue represented 31% of second-quarter revenue. Asia-Pacific revenue excluding China represented 36%. China accounted for 25% of revenue. EMEA and the rest of the world represented 8%. For the third quarter, Veeco forecast revenue of $200 million to $220 million, non-GAAP gross margin of 41% to 42%, and non-GAAP diluted earnings per share of $0.35 to $0.49 on approximately 67 million shares. For full-year 2026, the company forecast non-GAAP gross margin of 40% to 42%, operating expenses of $215 million to $225 million, and non-GAAP diluted earnings per share of $1.36 to $1.61. Veeco ended the quarter with $429 million in cash and short-term investments, up $46 million from the prior quarter. Operating cash flow was $51 million, while capital expenditures totaled $4 million. Regarding Veeco’s pending merger with Axcelis, Miller said both companies’ shareholders have approved the transaction and all regulatory clearances have been obtained except for China antitrust approval. Veeco continues to target a closing in the second half of 2026. Veeco Instruments Inc (NASDAQ: VECO) is a leading supplier of process equipment for the semiconductor, data storage, wireless communications, power electronics and advanced packaging industries. The company designs, manufactures and services precision tools used to grow, deposit and etch thin films on substrates, enabling the fabrication of chips, light-emitting diodes (LEDs), micro-electromechanical systems (MEMS) and high-density storage devices. Veeco's platforms are deployed across fabrication facilities worldwide, where they support key processes in materials science and device manufacturing. Veeco's product portfolio spans molecular beam epitaxy (MBE), metal organic chemical vapor deposition (MOCVD), atomic layer deposition (ALD), ion beam etch and deposition, and high-precision wet and dry etch systems. 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 "Veeco Instruments Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second Quarter 2026 Highlights: Revenue of $193.5 million, compared with $166.1 million in the same period last year GAAP net income of $11.9 million, or $0.18 per diluted share, compared with $11.7 million, or $0.20 earnings per diluted share in the same period last year Non-GAAP net income of $21.8 million, or $0.33 per diluted share, compared with $21.5 million, or $0.36 per diluted share in the same period last year PLAINVIEW, N.Y., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 2026. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. “Veeco delivered strong quarterly results, exceeding market expectations while continuing to build momentum across our business,” said Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “The rapid expansion of AI is driving increased demand across our broad portfolio of advanced technologies, resulting in robust order activity and deeper customer engagement throughout our markets. Supported by growing visibility into 2027 and the execution of our manufacturing expansion strategy, we remain confident in our long-term growth outlook.” Guidance and Outlook The following guidance is provided for Veeco’s third quarter 2026: Revenue is expected in the range of $200 million to $220 million GAAP diluted earnings per share are expected in the range of $0.20 to $0.34 Non-GAAP diluted earnings per share are expected in the range of $0.35 to $0.49 The following revised guidance is provided for Veeco’s fiscal year 2026: Revenue is expected in the range of $780 million to $810 million GAAP diluted earnings per share are expected in the range of $0.78 to $1.02 Non-GAAP diluted earnings per share are expected in the range of $1.36 to $1.61 Conference Call Information A conference call reviewing these results has been scheduled for today, August 5, 2026 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call. About Veeco Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com. No Offer or Solicitation This communication is not intended to and shall not constitute an offer to purchase or the solicitation of an offer to buy or sell any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Forward-looking Statements This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, including trends related to artificial intelligence and high-performance computing, industry outlooks and demand drivers, statements regarding the pending merger with Axcelis, the timing of shipments, deliveries and revenue recognition, statements regarding shipments currently being held by U.S. Customs, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results, the timing, completion and expected benefits of the proposed transaction and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the effects of foreign and domestic tariffs and the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; cybersecurity attacks and our ability to safeguard sensitive information and protect our intellectual property rights in key technologies; the effects of regional or global health epidemics; delays in or failure to complete the proposed transaction, whether due to an inability by either party to satisfy one or more conditions to closing, including an inability to obtain regulatory approval in China, the occurrence of events or changes in circumstances that give rise to the termination of the applicable merger agreement by either party, or otherwise; risks related to the pendency of the proposed transaction and its effect on our business, financial condition, results of operations, cash flows and stock price; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees, including as a result of the proposed transaction; diversion of management time and attention from ordinary course business operations to the proposed transaction and other potential disruptions to our business relating thereto; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. -financial tables attached- Veeco Contacts: Note on Reconciliation Tables The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with GAAP. These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Veeco Instruments (VECO) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +26.92%. A quarter ago, it was expected that this precision manufacturing equipment maker would post earnings of $0.2 per share when it actually produced earnings of $0.14, delivering a surprise of -30%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Veeco, which belongs to the Zacks Electronics - Manufacturing Machinery industry, posted revenues of $193.48 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.49%. This compares to year-ago revenues of $166.1 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. Veeco shares have added about 88.2% since the beginning of the year versus the S&P 500's gain of 13%. While Veeco 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 Veeco 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 $0.58 on $220 million in revenues for the coming quarter and $1.65 on $798.3 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, Electronics - Manufacturing Machinery is currently in the top 8% 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. One other stock from the same industry, Axcelis Technologies (ACLS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This semiconductor services company is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -20.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Axcelis Technologies' revenues are expected to be $205.1 million, up 5.4% 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 Veeco Instruments Inc. (VECO) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Veeco Instruments VECO is scheduled to release second-quarter 2026 results on Aug. 5.The company expects second-quarter 2026 revenues between $170 million and $190 million. Non-GAAP earnings are expected in the 20-32 cents per share range.The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $180 million, indicating growth of 8.37% from the figure reported in the year-ago quarter. The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. The figure indicates a 27.78% decline from the year-ago quarter’s reported figure. Veeco Instruments Inc. price-eps-surprise | Veeco Instruments Inc. Quote VECO beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missing the other two, delivering an average surprise of 14.55%. Let us see how things have shaped up for the upcoming announcement. Veeco Instruments’s second-quarter 2026 results are expected to have benefited from sustained investments in artificial intelligence (AI) and high-performance computing (HPC), which continue to drive demand for advanced semiconductor manufacturing equipment. Strong AI-driven demand from leading-edge semiconductor customers is expected to have supported top-line growth in the to-be-reported quarter. Continued investments in advanced logic, DRAM, high-bandwidth memory (HBM), advanced packaging and compound semiconductors are likely to have contributed to growth. Top-line growth is expected to have benefited from robust demand for VECO’s LSA systems used in advanced logic and memory manufacturing. The company continues to strengthen its position with Tier 1 logic and DRAM customers while expanding opportunities in HBM. AI-driven investments are expected to have supported demand for VECO’s advanced packaging wet processing systems. Momentum in silicon photonics is expected to have supported top-line growth in the to-be-reported quarter. Rising adoption of optical interconnects in AI data centers is driving demand for indium phosphide laser manufacturing equipment. Ongoing manufacturing capacity expansion across its advanced packaging and Ion Beam Deposition platforms is expected to have enhanced VECO’s ability to support growing customer demand and future deliveries.However, the second-quarter 2026 results are likely to suffered from weaker demand in China’s mature-node semiconductor market, where investments in legacy 28-nanometer and 40-nanometer fabs continue to decline. U.S. export controls are expected to have remained a headwind in the to-be-reported quarter. During the first quarter, VECO was unable to ship a laser spike annealing system worth roughly $8 million after the Bureau of Industry and Security informed the company that the customer required an export license. Any continued licensing delays could have weighed on second-quarter shipments and profitability. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.VECO currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.NVIDIA NVDA has an Earnings ESP of +0.52% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. NVIDIA shares have gained 7.6% in the year-to-date period. NVDA is set to report second-quarter fiscal 2027 results on Aug. 26. Analog Devices ADI has an Earnings ESP of +2.37% and a Zacks Rank #2 at present. Analog Devices shares have gained 35.5% in the year-to-date period. ADI is scheduled to report its third-quarter fiscal 2026 results on Aug. 19.Applied Materials AMAT has an Earnings ESP of +1.52% and a Zacks Rank #2.Applied Materials shares have gained 97.5% in the year-to-date period. AMAT is set to report its third-quarter fiscal 2026 results on Aug. 13. 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 Veeco Instruments Inc. (VECO) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research