Veeco Issues Fourth-Quarter Sales Guidance

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue reached $209.4 million as the company guided the fourth quarter to $230 million–$260 million and said it is positioned to exceed $1 billion in 2027.

Veeco Instruments Inc. (VECO), a manufacturer of semiconductor process equipment, reported third-quarter revenue of $209.4 million, following a year-over-year increase in the second quarter and a decline in the first quarter.

A year earlier, sales were $165.9 million. In the second quarter, revenue of $193.5 million had been above $166.1 million a year earlier. In the first quarter, sales of $158.3 million had been below $167.3 million a year earlier. Sequentially, the third quarter was up from $193.5 million in the second quarter.

GAAP net income was $13.6 million, or $0.21 a share, compared with $10.6 million, or $0.17 a share, a year earlier. Non-GAAP net income was $24.1 million, or $0.36 a share, matching the year-ago non-GAAP per-share result. GAAP operating income was $14.1 million. Non-GAAP operating income was $25.2 million.

Gross margin compressed. GAAP gross margin was 38.4%, down from 40.8% a year earlier. Non-GAAP gross margin was 39.1%, versus 41.9% a year earlier. Cost of sales was $129.0 million. Research and development expense was $35.1 million. Merger-related costs were $2.3 million.

Chief Executive Officer Bill Miller said the quarter reflected execution and opportunities across the business, citing AI infrastructure investment in leading-edge logic and memory, advanced packaging, and high-speed optical connectivity, and said that was driving customer engagement and order activity. He said Veeco is well positioned to exceed one billion dollars in revenue for the full year 2027.

The company issued fourth-quarter 2026 revenue guidance of $230 million to $260 million. GAAP diluted earnings per share are expected at $0.34 to $0.53; non-GAAP diluted earnings per share at $0.50 to $0.70.

Fiscal 2026 revenue guidance was revised to $790 million to $820 million, from $780 million to $810 million in August. GAAP diluted earnings per share guidance is $0.72 to $0.92, versus $0.78 to $1.02 previously. Non-GAAP diluted earnings per share guidance is $1.32 to $1.52, versus $1.36 to $1.61.

Contract liabilities were $132.4 million at September 30, 2026, up from $74.2 million at year-end 2025. Inventories were $308.3 million. Cash and cash equivalents were $205.3 million, with short-term investments of $277.2 million. Long-term debt was $226.8 million.

The company said a merger with Axcelis remains pending. Forward-looking statements in the release referenced shipments currently being held by U.S. Customs and risks tied to the proposed transaction, including regulatory approval in China.

Nine months ended September 30, 2026, net sales were $561.2 million, versus $499.3 million a year earlier. GAAP net income for the nine months was $25.2 million, or $0.39 a share, versus $34.3 million, or $0.57 a share, a year earlier.