Veeco Reports Second Quarter 2026 Financial Results

About this update from Veeco Instruments Inc.

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. 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 '25 Operating 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 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: Investor Relations: Alex Delacroix Media: Brenden Wright (516) 528-1020 (410) 984-2610 [email protected] [email protected] 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, 2025 GAAP 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-GAAP Net sales   $ 200   -   $ 220               $ 200   -   $ 220 Gross profit     80   -     92   1   —   —     82   -     93 Gross margin     40%   -     42%                 41%   -     42% Operating expenses     66   -     67   (8)   —   (1)     57   -     58 Operating income     14   -     25   9   —   1     25   -     35 Net income   $ 14   -   $ 23   9   —   —   $ 23   -   $ 33                                               Income per diluted common share   $ 0.20   -   $ 0.34               $ 0.35   -   $ 0.49 Income 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-GAAP Net sales   $ 780   -   $ 810               $ 780   -   $ 810 Gross profit     306   -     334   6   —   —     312   -     340 Gross margin     39%   -     41%                 40%   -     42% Operating expenses     253   -     263   (30)   (2)   (6)     215   -     225 Operating income     53   -     71   36   2   6     97   -     115 Net income   $ 52   -   $ 68   36   2   1   $ 91   -   $ 107                                               Income per diluted common share   $ 0.78   -   $ 1.02               $ 1.36   -   $ 1.61 Income 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  

View stock analysis, news, and events for Veeco Instruments Inc.