Axcelis Forecasts Fourth-Quarter Revenue of About $275 Million

The Tip Desk · November 6, 2026 · 2 min read

Ion-implant maker Axcelis posted $237.8 million of third-quarter revenue and said it expects about $275 million in the fourth quarter.

Axcelis Technologies (ACLS), the Beverly, Massachusetts designer of ion implantation systems, reported third-quarter revenue of $237.8 million, up from $215.2 million in the second quarter, and said it expects fourth-quarter revenue of approximately $275 million.

The sequential sales increase followed an 8.2% rise from $199.0 million in the first quarter. President and CEO Russell Low said improving demand drove sequential growth in systems revenue, complemented by another quarterly record in CS&I. He said the company was particularly encouraged by a strong increase in bookings, reflecting a broadening recovery across end markets, with continued momentum in Memory and increasing activity in Power and General Mature.

GAAP diluted earnings were $1.21 a share, compared with $0.75 in the second quarter. Non-GAAP diluted earnings were $1.26 a share. Net income was $37.8 million.

GAAP operating margin expanded to 11.5% from 9.4% in the second quarter. Non-GAAP operating margin was 16.6%. Adjusted EBITDA was $44.0 million.

GAAP gross margin compressed to 41.0% from 42.4% in the second quarter. Non-GAAP gross margin was 41.2%. Senior Vice President and Interim CFO David Ryzhik said third-quarter results exceeded the company’s expectations, supported by stronger shipments and record CS&I revenue, despite foreign-exchange headwinds on gross margin.

The company said it expects fourth-quarter GAAP earnings of approximately $1.15 a share and non-GAAP earnings of approximately $1.50 a share. Those figures compare with third-quarter outlooks of $0.76 and $1.11, respectively, issued in August.

Low said the company expects to finish 2026 with positive momentum and anticipates further growth in 2027. Ryzhik said the combination of improving demand, a growing installed base and continued strength in CS&I provides a solid foundation as the company enters 2027.

Cash and cash equivalents were $190.8 million at September 30, 2026. Inventories were $376.3 million. Cash, cash equivalents and restricted cash were $201.4 million. Net cash provided by operating activities was $40.2 million in the three months ended September 30.

Non-GAAP results reflect adjustments for share-based compensation, certain restructuring and severance items, and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025. Transaction and integration costs in the third quarter were $5.0 million.

Beginning in the third quarter of 2026, Axcelis stopped separately presenting revenue and cost of revenue attributable to Services, which the company said represents a small percentage of the business.

Low said the company’s strategy of investing in next-generation technologies is beginning to yield tangible results and positions it to capitalize on expanding market opportunities as customer investment recovers.