Veeco Reports Second Quarter 2026 Financial Results

Veeco Reports Second Quarter 2026 Financial Results August 5, 2026 Second Quarter 2026 Highlights: Revenue of $193.5 million, compared with $166.1 million in the same period last yearGAAP 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 yearNon-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. U.S. Dollars in millions, except per share data GAAP Results Q2 '26 Q2 '25 Revenue $193.5 $166.1 Net income $11.9 $11.7 Diluted earnings per share $0.18 $0.20 Non-GAAP Results Q2 '26 Q2 '25Operating income $23.1 $23.1 Net income $21.8 $21.5 Diluted earnings per share $0.33 $0.36 “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 millionGAAP diluted earnings per share are expected in the range of $0.20 to $0.34Non-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 millionGAAP diluted earnings per share are expected in the range of $0.78 to $1.02Non-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: Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Net sales $193,481 $166,104 $351,822 $333,396 Cost of sales 118,649 97,377 221,162 196,202 Gross profit 74,832 68,727 130,660 137,194 Operating expenses, net: Research and development 33,343 31,560 63,218 60,074 Selling, general, and administrative 27,629 23,927 53,645 48,955 Amortization of intangible assets 607 821 1,312 1,642 Merger costs 1,464 — 3,476 — Other operating expense (income), net (64) 49 (186) 5 Total operating expenses, net 62,979 56,357 121,465 110,676 Operating income 11,853 12,370 9,195 26,518 Interest income (expense), net 1,171 905 2,346 1,741 Other income (expense), net — (653) — (653)Income before income taxes 13,024 12,622 11,541 27,606 Income tax expense 1,167 889 8 3,926 Net income $11,857 $11,733 $11,533 $23,680 Income per common share: Basic $0.19 $0.20 $0.19 $0.41 Diluted $0.18 $0.20 $0.18 $0.40 Weighted average number of shares: Basic 61,064 59,076 60,777 58,434 Diluted 66,782 60,237 64,936 60,072 Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) June 30, December 31, 2026 2025 (unaudited) Assets Current assets: Cash and cash equivalents $214,458 $163,466 Short-term investments 214,940 226,763 Accounts receivable, net 148,369 110,685 Contract assets 23,430 34,838 Inventories 292,495 275,298 Prepaid expenses and other current assets 36,582 34,286 Total current assets 930,274 845,336 Property, plant and equipment, net 110,265 108,646 Operating lease right-of-use assets 23,634 24,606 Intangible assets, net 4,384 5,696 Goodwill 214,964 214,964 Deferred income taxes 124,045 122,935 Other assets 6,899 3,612 Total assets $1,414,465 $1,325,795 Liabilities and stockholders’ equity Current liabilities: Accounts payable $57,480 $55,345 Accrued expenses and other current liabilities 54,087 45,503 Contract liabilities 123,682 74,161 Income taxes payable 1,720 3,048 Total current liabilities 236,969 178,057 Deferred income taxes 492 532 Long-term debt 226,543 226,009 Long-term operating lease liabilities 30,470 31,837 Other liabilities 17,209 3,852 Total liabilities 511,683 440,287 Total stockholders’ equity 902,782 885,508 Total liabilities and stockholders’ equity $1,414,465 $1,325,795 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. Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2026) (in thousands) (unaudited) Non-GAAP Adjustments Share-Based Three months ended June 30, 2026 GAAP Compensation Amortization Other Non-GAAP Net sales $193,481 $193,481 Gross profit 74,832 1,600 76,432 Gross margin 38.7% 39.5%Operating expenses 62,979 (7,615) (607) (1,464) 53,293 Operating income 11,853 9,215 607 1,464^ 23,139 Net income 11,857 9,215 607 71^ 21,750 ____________________________ ^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2026) (in thousands) (unaudited)Three months ended June 30, 2026 Merger related expenses $1,464 Subtotal 1,464 Non-cash interest expense 290 Non-GAAP tax adjustment * (1,683)Total Other $71 ____________________________ * - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2026) (in thousands, except per share amounts) (unaudited) Three months ended June 30, 2026 GAAP Non-GAAP Numerator: Net income available to common shareholders $11,857 $21,750 Denominator: Basic weighted average shares outstanding 61,064 61,064 Effect of potentially dilutive share-based awards 1,972 1,972 Dilutive effect of 2029 Convertible Senior Notes 3,746 3,746 Diluted weighted average shares outstanding 66,782 66,782 Net income per common share: Basic $0.19 $0.36 Diluted $0.18 $0.33 Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025) (in thousands) (unaudited) Non-GAAP Adjustments Share-based Three months ended June 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $166,104 $166,104 Gross profit 68,727 1,991 70,718 Gross margin 41.4% 42.6%Operating expenses 56,357 (7,660) (821) (255) 47,621 Operating income 12,370 9,651 821 255^ 23,097 Net income 11,733 9,651 821 (670)^ 21,535 ____________________________ ^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2025) (in thousands) (unaudited)Three months ended June 30, 2025 Other $255 Subtotal 255 Non-cash interest expense 292 Other (income) expense, net 653 Non-GAAP tax adjustment * (1,870)Total Other $(670)____________________________ * - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2025) (in thousands, except per share amounts) (unaudited) Three months ended June 30, 2025 GAAP Non-GAAP Numerator: Net income $11,733 $21,535 Interest expense associated with 2025 and 2027 Convertible Senior Notes 125 113 Net income available to common shareholders $11,858 $21,648 Denominator: Basic weighted average shares outstanding 59,076 59,076 Effect of potentially dilutive share-based awards 257 257 Dilutive effect of 2027 Convertible Senior Notes(1) 904 685 Diluted weighted average shares outstanding 60,237 60,018 Net income per common share: Basic $0.20 $0.36 Diluted $0.20 $0.36 ____________________________ (1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2026 and 2025) (in thousands) (unaudited) Three months ended Three months ended June 30, 2026 June 30, 2025GAAP Net income $11,857 $11,733 Share-based compensation 9,215 9,651 Amortization 607 821 Merger related expenses 1,464 — Interest (income) expense, net (1,171) (905)Other — 908 Income tax expense (benefit) 1,167 889 Non-GAAP Operating income $23,139 $23,097 Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2026) (in millions, except per share amounts) (unaudited) Non-GAAP Adjustments Guidance for the three months Share-based ending September 30, 2026 GAAP Compensation Amortization Other Non-GAAPNet sales $200 - $220 $200 - $220Gross profit 80 - 92 1 — — 82 - 93Gross margin 40% - 42% 41% - 42%Operating expenses 66 - 67 (8) — (1) 57 - 58Operating income 14 - 25 9 — 1 25 - 35Net income $14 - $23 9 — — $23 - $33 Income per diluted common share $0.20 - $0.34 $0.35 - $0.49Income per Diluted Common Share (Q3 2026) (in millions, except per share amounts) (unaudited)Guidance for the three months ending September 30, 2026 GAAP Non-GAAP Numerator: Net income available to common shareholders $14 -$23 $23 -$33 Denominator: Basic weighted average shares outstanding 61 - 61 61 - 61 Effect of potentially dilutive share-based awards 2 - 2 2 - 2 Dilutive effect of 2029 Convertible Senior Notes 4 - 4 4 - 4 Diluted weighted average shares outstanding 67 - 67 67 - 67 Net income per common share: Income per diluted common share $0.20 -$0.34 $0.35 -$0.49 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2026) (in millions) (unaudited)Guidance for the three months ending September 30, 2026 GAAP Net income $14 -$23 Share-based compensation 9 - 9 Merger related expense 1 - 1 Interest expense (income) (1)- (1)Income tax expense 2 - 3 Non-GAAP Operating income $25 -$35 Note: Amounts may not calculate precisely due to rounding.Reconciliation of GAAP to Non-GAAP Financial Data (FY 2026) (in millions, except per share amounts) (unaudited) Non-GAAP Adjustments Guidance for the year ending Share-based December 31, 2026 GAAP Compensation Amortization Other Non-GAAPNet sales $780 - $810 $780 - $810Gross profit 306 - 334 6 — — 312 - 340Gross margin 39% - 41% 40% - 42%Operating expenses 253 - 263 (30) (2) (6) 215 - 225Operating income 53 - 71 36 2 6 97 - 115Net income $52 - $68 36 2 1 $91 - $107 Income per diluted common share $0.78 - $1.02 $1.36 - $1.61Income per Diluted Common Share (FY 2026) (in millions, except per share amounts) (unaudited)Guidance for the year ending December 31, 2026 GAAP Non-GAAP Numerator: Net income available to common shareholders $52 -$68 $91 -$107 Denominator: Basic weighted average shares outstanding 62 - 62 62 - 62 Effect of potentially dilutive share-based awards 1 - 1 1 - 1 Dilutive effect of 2029 Convertible Senior Notes 4 - 4 4 - 4 Diluted weighted average shares outstanding 67 - 67 67 - 67 Net income per common share: Income per diluted common share $0.78 -$1.02 $1.36 -$1.61 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (FY 2026) (in millions) (unaudited)Guidance for the year ending December 31, 2026 GAAP Net income $52 -$68 Share-based compensation 36 - 36 Amortization 2 - 2 Merger related expense 6 - 6 Interest expense (income) (4)- (4)Income tax expense 5 - 7 Non-GAAP Operating income $97 -$115 Source: Veeco Instruments Inc.