Veeco Reports First Quarter 2026 Financial Results

First Quarter 2026 Highlights:

• Revenue of $158.3 million, compared with $167.3 million in the same period last year
• GAAP net loss of $(0.3) million, or $(0.01) loss per diluted share, compared with net income of $11.9 million, or $0.20 earnings per diluted share in the same period last year
• Non-GAAP net income of $8.9 million, or $0.14 per diluted share, compared with $22.2 million, or $0.37 per diluted share in the same period last year
  
  

PLAINVIEW, N.Y., May 05, 2026 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (NASDAQ:VECO) today announced financial results for its first quarter ended March 31, 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		Q1 '26				Q1 '25
Revenue		$	158.3			$	167.3
Net income (loss)		$	(0.3	)		$	11.9
Diluted earnings (loss) per share		$	(0.01	)		$	0.20

Non-GAAP Results		Q1 '26			Q1 '25
Operating income		$	8.6		$	24.3
Net income		$	8.9		$	22.2
Diluted earnings per share		$	0.14		$	0.37

"Veeco executed well in the first quarter as the industry enters a transformational period driven by rapid expansion of AI data centers and high-performance computing," said Bill Miller, Ph.D., Veeco's Chief Executive Officer. "This inflection is driving significant order activity across our portfolio, with particularly strong momentum in silicon photonics as customers scale optical connectivity and power-efficient technologies. Veeco's differentiated process equipment is increasingly critical to this landscape, positioning us well for sustained, multi-year revenue growth."

Guidance and Outlook

The following guidance is provided for Veeco's second quarter 2026:

• Revenue is expected in the range of $170 million to $190 million
• GAAP diluted earnings per share are expected in the range of $0.02 to $0.15
• Non-GAAP diluted earnings per share are expected in the range of $0.20 to $0.32
  
  

The following guidance for Veeco's fiscal year 2026 was previously provided and remains unchanged:

• Revenue is expected in the range of $740 million to $800 million
• GAAP diluted earnings per share are expected in the range of $0.83 to $1.17
• Non-GAAP diluted earnings per share are expected in the range of $1.50 to $1.85
  
  

Conference Call Information

A conference call reviewing these results has been scheduled for today, May 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	(516) 528-1020	adelacroix@veeco.com
Media: Brenden Wright	(410) 984-2610	bwright@veeco.com

                                                      

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
		Three months ended March 31,
		2026				2025
Net sales		$	158,341			$	167,292
Cost of sales			102,513				98,825
Gross profit			55,828				68,467
Operating expenses, net:
Research and development			29,875				28,514
Selling, general, and administrative			26,016				25,028
Amortization of intangible assets			705				821
Merger costs			2,012				—
Other operating expense (income), net			(122	)			(44	)
Total operating expenses, net			58,486				54,319
Operating income (loss)			(2,658	)			14,148
Interest income (expense), net			1,175				836
Income (loss) before income taxes			(1,483	)			14,984
Income tax expense (benefit)			(1,159	)			3,037
Net income (loss)		$	(324	)		$	11,947
Income per common share:
Basic		$	(0.01	)		$	0.21
Diluted		$	(0.01	)		$	0.20
Weighted average number of shares:
Basic			60,414				57,753
Diluted			60,414				60,234

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
		March 31,			December 31,
		2026			2025
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	179,535		$	163,466
Short-term investments			203,796			226,763
Accounts receivable, net			150,521			110,685
Contract assets			21,723			34,838
Inventories			282,231			275,298
Prepaid expenses and other current assets			35,613			34,286
Total current assets			873,419			845,336
Property, plant and equipment, net			107,817			108,646
Operating lease right-of-use assets			24,084			24,606
Intangible assets, net			4,991			5,696
Goodwill			214,964			214,964
Deferred income taxes			124,141			122,935
Other assets			3,553			3,612
Total assets		$	1,352,969		$	1,325,795
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	60,153		$	55,345
Accrued expenses and other current liabilities			52,038			45,503
Contract liabilities			92,731			74,161
Income taxes payable			1,763			3,048
Total current liabilities			206,685			178,057
Deferred income taxes			513			532
Long-term debt			226,253			226,009
Long-term operating lease liabilities			31,140			31,837
Other liabilities			4,716			3,852
Total liabilities			469,307			440,287
Total stockholders' equity			883,662			885,508
Total liabilities and stockholders' equity		$	1,352,969		$	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 (Q1 2026) (in thousands) (unaudited)
						Non-GAAP Adjustments
						Share-Based
Three months ended March 31, 2026		GAAP				Compensation			Amortization			Other			Non-GAAP
Net sales		$	158,341												$	158,341
Gross profit			55,828			1,511										57,339
Gross margin			35.3		%											36.2	%
Operating expenses			58,486			(7,000	)		(705	)		(2,012	)			48,769
Operating income (loss)			(2,658	)		8,511			705			2,012		^		8,570
Net income (loss)			(324	)		8,511			705			(16	)	^		8,876

_________________________

^   - See table below for additional details.

Other Non-GAAP Adjustments (Q1 2026)

(in thousands)

(unaudited)

Three months ended March 31, 2026
Merger related expenses	$	2,012
Subtotal		2,012
Non-cash interest expense		244
Non-GAAP tax adjustment *		(2,272	)
Total Other	$	(16	)

_________________________

*   - The ‘with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2026) (in thousands, except per share amounts) (unaudited)
		Three months ended March 31, 2026
		GAAP				Non-GAAP
Numerator:
Net income (loss) available to common shareholders		$	(324	)		$	8,876
Denominator:
Basic weighted average shares outstanding			60,414				60,414
Effect of potentially dilutive share-based awards			—				808
Dilutive effect of 2029 Convertible Senior Notes			—				642
Diluted weighted average shares outstanding			60,414				61,864
Net income (loss) per common share:
Basic		$	(0.01	)		$	0.15
Diluted		$	(0.01	)		$	0.14

_________________________

Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025) (in thousands) (unaudited)
					Non-GAAP Adjustments
					Share-based
Three months ended March 31, 2025			GAAP		Compensation			Amortization			Other			Non-GAAP
Net sales		$	167,292											$	167,292
Gross profit			68,467		1,343										69,810
Gross margin			40.9	%											41.7	%
Operating expenses			54,319		(7,865	)		(821	)		(99	)			45,534
Operating income			14,148		9,208			821			99		^		24,276
Net income			11,947		9,208			821			231		^		22,207

_________________________

^   - See table below for additional details.

Other Non-GAAP Adjustments (Q1 2025)

(in thousands)

(unaudited)

Three months ended March 31, 2025
Other	$	99
Subtotal		99
Non-cash interest expense		257
Non-GAAP tax adjustment *		(125	)
Total Other	$	231

_________________________

*   - The ‘with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2025) (in thousands, except per share amounts) (unaudited)
		Three months ended March 31, 2025
		GAAP			Non-GAAP
Numerator:
Net income		$	11,947		$	22,207
Interest expense associated with 2025 and 2027 Convertible Senior Notes			253			273
Net income available to common shareholders		$	12,200		$	22,480
Denominator:
Basic weighted average shares outstanding			57,753			57,753
Effect of potentially dilutive share-based awards			693			693
Dilutive effect of 2025 Convertible Senior Notes			—			174
Dilutive effect of 2027 Convertible Senior Notes(1)			1,788			1,354
Diluted weighted average shares outstanding			60,234			59,974
Net income per common share:
Basic		$	0.21		$	0.38
Diluted		$	0.20		$	0.37

_________________________

(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 (Q1 2026 and 2025) (in thousands) (unaudited)
		Three months ended				Three months ended
		March 31, 2026				March 31, 2025
GAAP Net income (loss)		$	(324	)		$	11,947
Share-based compensation			8,511				9,208
Amortization			705				821
Merger related expenses			2,012				—
Interest (income) expense, net			(1,175	)			(836	)
Other			—				99
Income tax expense (benefit)			(1,159	)			3,037
Non-GAAP Operating income		$	8,570			$	24,276

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2026) (in millions, except per share amounts) (unaudited)
												Non-GAAP Adjustments
Guidance for the three months ending												Share-based
June 30, 2026		GAAP										Compensation			Amortization			Other			Non-GAAP
Net sales		$	170			-		$	190												$	170			-		$	190
Gross profit			63			-			74			2			—			—				65			-			76
Gross margin			37%			-			39%													38%			-			40%
Operating expenses			62			-			65			(7)			(1)			(2)				52			-			55
Operating income			1			-			10			9			1			2				13			-			22
Net income		$	2			-		$	10			9			1			1			$	12			-		$	21
Income per diluted common share		$	0.02			-		$	0.15												$	0.20			-		$	0.32

Income per Diluted Common Share (Q2 2026) (in millions, except per share amounts) (unaudited)
Guidance for the three months ending June 30, 2026		GAAP								Non-GAAP
Numerator:
Net income available to common shareholders		$	2		-		$	10		$	12		-		$	21
Denominator:
Basic weighted average shares outstanding			61		-			61			61		-			61
Effect of potentially dilutive share-based awards			1		-			1			1		-			1
Dilutive effect of 2029 Convertible Senior Notes			2		-			2			2		-			2
Diluted weighted average shares outstanding			64		-			64			64		-			64
Net income per common share:
Income per diluted common share		$	0.02		-		$	0.15		$	0.20		-		$	0.32

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2026) (in millions) (unaudited)
Guidance for the three months ending June 30, 2026
GAAP Net income		$	2			-		$	10
Share-based compensation			9			-			9
Amortization			1			-			1
Merger related expense			2			-			2
Interest expense (income)			(1	)		-			(1	)
Income tax expense			1			-			1
Non-GAAP Operating income		$	13			-		$	22

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		$	740			-		$	800												$	740			-		$	800
Gross profit			298			-			338			8			—			—				306			-			346
Gross margin			40%			-			42%													41%			-			43%
Operating expenses			244			-			259			(31)			(2)			(6)				205			-			220
Operating income			54			-			79			39			2			6				101			-			126
Net income		$	52			-		$	73			39			2			1			$	94			-		$	115
Income per diluted common share		$	0.83			-		$	1.17												$	1.50			-		$	1.85

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		-		$	73		$	94		-		$	115
Denominator:
Basic weighted average shares outstanding			61		-			61			61		-			61
Effect of potentially dilutive share-based awards			1		-			1			1		-			1
Dilutive effect of 2029 Convertible Senior Notes			1		-			1			1		-			1
Diluted weighted average shares outstanding			63		-			63			63		-			63
Net income per common share:
Income per diluted common share		$	0.83		-		$	1.17		$	1.50		-		$	1.85

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			-		$	73
Share-based compensation			39			-			39
Amortization			2			-			2
Merger related expense			6			-			6
Interest expense (income)			(4	)		-			(4	)
Income tax expense			7			-			10
Non-GAAP Operating income		$	101			-		$	126