Veeco Instruments Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for Q3 2026 was $209.4 million, up from $165.9 million in Q3 2025.
• GAAP net income was $13.6 million ($0.21 per diluted share), compared to $10.6 million ($0.17 per diluted share) in Q3 2025.
• Non-GAAP net income was $24.1 million ($0.36 per diluted share), compared to $21.8 million ($0.36 per diluted share) in Q3 2025.
• GAAP operating income was $14.1 million, compared to $10.6 million in Q3 2025.
• Non-GAAP operating income was $25.2 million, compared to $23.1 million in Q3 2025.
• Gross profit was $80.4 million (38.4% margin) in Q3 2026, compared to $67.7 million (40.8% margin) in Q3 2025.
• Non-GAAP gross profit was $81.8 million (39.1% margin) in Q3 2026, compared to $69.5 million (41.9% margin) in Q3 2025.
• Total assets were $1.51 billion as of September 30, 2026, compared to $1.33 billion as of December 31, 2025.
• Cash and cash equivalents were $205.3 million as of September 30, 2026, compared to $163.5 million as of December 31, 2025.
• Long-term debt was $226.8 million as of September 30, 2026, compared to $226.0 million as of December 31, 2025.
• Contract liabilities (deferred revenue) were $132.4 million as of September 30, 2026, compared to $74.2 million as of December 31, 2025.
• Accounts receivable was $154.1 million as of September 30, 2026, compared to $110.7 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 revenue is expected to be between $230 million and $260 million.
• Q4 2026 GAAP diluted EPS is expected to be between $0.34 and $0.53.
• Q4 2026 Non-GAAP diluted EPS is expected to be between $0.50 and $0.70.
• Full-year 2026 revenue is expected to be between $790 million and $820 million.
• Full-year 2026 GAAP diluted EPS is expected to be between $0.72 and $0.92.
• Full-year 2026 Non-GAAP diluted EPS is expected to be between $1.32 and $1.52.
• Management targets exceeding $1 billion in revenue for the full year 2027.

Business Segments and Product Lines:

• The press release does not provide specific financial performance breakdowns by business segment or product line.
• Management noted that AI infrastructure investment is driving technology transitions across leading-edge logic, memory, advanced packaging, and high-speed optical connectivity.
• Veeco holds leading technology positions in laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean, and lithography technologies.

Market and Competitive Landscape:

• Management reported unprecedented customer engagement and order activity across its differentiated portfolio.
• The company cited accelerating AI infrastructure investment as a key driver for technology transitions.
• No specific market share data or direct competitor comparisons were provided in the release.

Risks and Challenges:

• Risks include global economic and industry conditions, global trade issues, tariffs, and ongoing trade disputes between the U.S. and China.
• Dependency on third-party suppliers and outsourcing partners is a noted risk.
• Risks related to the pending merger with Axcelis, including the inability to obtain regulatory approval in China, are highlighted.
• Potential impacts from cybersecurity attacks, health epidemics, and the variability of results among products and end-markets are identified.
• The impact of indebtedness, including convertible senior notes and capped call transactions, is mentioned as a risk factor.

Management Commentary and Tone:

• CEO Bill Miller, Ph.D., stated that third-quarter performance reflects "solid execution and significant opportunities."
• Management expressed confidence that Veeco is "well positioned to exceed one billion dollars in revenue for the full year 2027" due to greater visibility and strategic investments in manufacturing capacity.
• The tone indicates optimism regarding the impact of AI infrastructure investment on customer engagement and order activity.

Other Key Points:

• The press release mentions a pending merger with Axcelis.
• The company has 2029 Convertible Senior Notes and capped call transactions outstanding.
• A conference call was scheduled for November 4, 2026, at 5:00 pm ET.
• A slide presentation will be posted to the investor relations website prior to the call.
• Non-GAAP financial measures exclude share-based compensation, restructuring charges, non-cash asset impairments, and acquisition-related items.