Veeco Reports Third Quarter 2026 Financial Results

Third Quarter 2026 Highlights:

• Revenue of $209.4 million, compared with $165.9 million in the same period last year
• GAAP net income of $13.6 million, or $0.21 per diluted share, compared with $10.6 million, or $0.17 earnings per diluted share in the same period last year
• Non-GAAP net income of $24.1 million, or $0.36 per diluted share, compared with $21.8 million, or $0.36 per diluted share in the same period last year
  

PLAINVIEW, N.Y., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its third quarter ended September 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		Q3 '26			Q3 '25
Revenue		$	209.4		$	165.9
Net income		$	13.6		$	10.6
Diluted earnings per share		$	0.21		$	0.17

Non-GAAP Results		Q3 '26			Q3 '25
Operating income		$	25.2		$	23.1
Net income		$	24.1		$	21.8
Diluted earnings per share		$	0.36		$	0.36

“Veeco’s third-quarter performance reflects solid execution and significant opportunities across our business,” said Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “AI infrastructure investment is accelerating technology transitions across leading-edge logic and memory, advanced packaging, and high-speed optical connectivity. This is driving unprecedented customer engagement and order activity across our differentiated portfolio. With greater visibility and strategic investments to expand our manufacturing capacity, we believe Veeco is well positioned to exceed one billion dollars in revenue for the full year 2027.”

Guidance and Outlook

The following guidance is provided for Veeco’s fourth quarter 2026:

• Revenue is expected in the range of $230 million to $260 million
• GAAP diluted earnings per share are expected in the range of $0.34 to $0.53
• Non-GAAP diluted earnings per share are expected in the range of $0.50 to $0.70
  

The following revised guidance is provided for Veeco’s fiscal year 2026:

• Revenue is expected in the range of $790 million to $820 million
• GAAP diluted earnings per share are expected in the range of $0.72 to $0.92
• Non-GAAP diluted earnings per share are expected in the range of $1.32 to $1.52
  
  

Conference Call Information

A conference call reviewing these results has been scheduled for today, November 4, 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 September 30,						Nine months ended September 30,
		2026			2025			2026				2025
Net sales		$	209,384		$	165,881		$	561,206			$	499,277
Cost of sales			128,995			98,178			350,157				294,380
Gross profit			80,389			67,703			211,049				204,897
Operating expenses, net:
Research and development			35,059			28,988			98,277				89,062
Selling, general, and administrative			28,534			24,654			82,179				73,609
Amortization of intangible assets			411			771			1,723				2,413
Merger costs			2,260			2,609			5,736				2,609
Other operating expense (income), net			26			127			(160	)			132
Total operating expenses, net			66,290			57,149			187,755				167,825
Operating income			14,099			10,554			23,294				37,072
Interest income (expense), net			1,785			1,321			4,131				3,062
Other income (expense), net			—			—			—				(653	)
Income before income taxes			15,884			11,875			27,425				39,481
Income tax expense			2,249			1,279			2,257				5,205
Net income		$	13,635		$	10,596		$	25,168			$	34,276
Income per common share:
Basic		$	0.22		$	0.18		$	0.41			$	0.58
Diluted		$	0.21		$	0.17		$	0.39			$	0.57
Weighted average number of shares:
Basic			61,109			60,077			60,889				58,993
Diluted			66,154			60,950			65,207				60,436

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
		September 30,			December 31,
		2026			2025
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	205,321		$	163,466
Short-term investments			277,184			226,763
Accounts receivable, net			154,064			110,685
Contract assets			26,884			34,838
Inventories			308,265			275,298
Prepaid expenses and other current assets			43,875			34,286
Total current assets			1,015,593			845,336
Property, plant and equipment, net			116,163			108,646
Operating lease right-of-use assets			24,715			24,606
Intangible assets, net			3,973			5,696
Goodwill			214,964			214,964
Deferred income taxes			123,538			122,935
Other assets			6,714			3,612
Total assets		$	1,505,660		$	1,325,795
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	68,474		$	55,345
Accrued expenses and other current liabilities			60,628			45,503
Contract liabilities			132,351			74,161
Income taxes payable			1,041			3,048
Total current liabilities			262,494			178,057
Deferred income taxes			458			532
Long-term debt			226,835			226,009
Long-term operating lease liabilities			31,480			31,837
Other liabilities			60,471			3,852
Total liabilities			581,738			440,287
Total stockholders’ equity			923,922			885,508
Total liabilities and stockholders’ equity		$	1,505,660		$	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 (Q3 2026) (in thousands) (unaudited)
					Non-GAAP Adjustments
					Share-Based
Three months ended September 30, 2026		GAAP			Compensation			Amortization			Other			Non-GAAP
Net sales		$	209,384											$	209,384
Gross profit			80,389		1,411										81,800
Gross margin			38.4	%											39.1	%
Operating expenses			66,290		(7,003	)		(411	)		(2,260	)			56,616
Operating income			14,099		8,414			411			2,260		^		25,184
Net income			13,635		8,414			411			1,643		^		24,103

^ - See table below for additional details.

Other Non-GAAP Adjustments (Q3 2026) (in thousands) (unaudited)
Three months ended September 30, 2026
Merger related expenses	$	2,260
Subtotal		2,260
Non-cash interest expense		292
Non-GAAP tax adjustment *		(909	)
Total Other	$	1,643

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

Net Income per Common Share (Q3 2026) (in thousands, except per share amounts) (unaudited)
		Three months ended September 30, 2026
		GAAP			Non-GAAP
Numerator:
Net income available to common shareholders		$	13,635		$	24,103
Denominator:
Basic weighted average shares outstanding			61,109			61,109
Effect of potentially dilutive share-based awards			1,756			1,756
Dilutive effect of 2029 Convertible Senior Notes			3,289			3,289
Diluted weighted average shares outstanding			66,154			66,154
Net income per common share:
Basic		$	0.22		$	0.39
Diluted		$	0.21		$	0.36

Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2025) (in thousands) (unaudited)
					Non-GAAP Adjustments
					Share-based
Three months ended September 30, 2025			GAAP		Compensation			Amortization			Other			Non-GAAP
Net sales		$	165,881											$	165,881
Gross profit			67,703		1,771										69,474
Gross margin			40.8	%											41.9	%
Operating expenses			57,149		(7,374	)		(771	)		(2,663	)			46,341
Operating income			10,554		9,145			771			2,663		^		23,133
Net income			10,596		9,145			771			1,261		^		21,773

^ - See table below for additional details.

Other Non-GAAP Adjustments (Q3 2025) (in thousands) (unaudited)
Three months ended September 30, 2025
Merger related expenses		2,609
Other	$	54
Subtotal		2,663
Non-cash interest expense		283
Non-GAAP tax adjustment *		(1,685	)
Total Other	$	1,261

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

Net Income per Common Share (Q3 2025) (in thousands, except per share amounts) (unaudited)
		Three months ended September 30, 2025
		GAAP			Non-GAAP
Numerator:
Net income available to common shareholders		$	10,596		$	21,773
Denominator:
Basic weighted average shares outstanding			60,077			60,077
Effect of potentially dilutive share-based awards			873			873
Diluted weighted average shares outstanding			60,950			60,950
Net income per common share:
Basic		$	0.18		$	0.36
Diluted		$	0.17		$	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 (Q3 2026 and 2025) (in thousands) (unaudited)
		Three months ended				Three months ended
		September 30, 2026				September 30, 2025
GAAP Net income		$	13,635			$	10,596
Share-based compensation			8,414				9,145
Amortization			411				771
Merger related expenses			2,260				2,609
Interest (income) expense, net			(1,785	)			(1,321	)
Other			—				54
Income tax expense (benefit)			2,249				1,279
Non-GAAP Operating income		$	25,184			$	23,133

Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2026)
(in millions, except per share amounts)
(unaudited)

												Non-GAAP Adjustments
Guidance for the three months ending												Share-based
December 31, 2026		GAAP										Compensation			Amortization		Other			Non-GAAP
Net sales		$	230			-		$	260											$	230			-		$	260
Gross profit			97			-			114			2			—		—				99			-			116
Gross margin			42	%		-			44	%											43	%		-			44	%
Operating expenses			73			-			75			(8	)		—		(1	)			64			-			66
Operating income			24			-			39			10					1				35			-			50
Net income		$	23			-		$	36			10			—		1			$	34			-		$	47
Income per diluted common share		$	0.34			-		$	0.53											$	0.50			-		$	0.70

Income per Diluted Common Share (Q4 2026) (in millions, except per share amounts) (unaudited)
Guidance for the three months ending December 31, 2026		GAAP								Non-GAAP
Numerator:
Net income available to common shareholders		$	23		-		$	36		$	34		-		$	47
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			3		-			3			3		-			3
Diluted weighted average shares outstanding			66		-			66			66		-			66
Net income per common share:
Income per diluted common share		$	0.34		-		$	0.53		$	0.50		-		$	0.70

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q4 2026) (in millions) (unaudited)
Guidance for the three months ending December 31, 2026
GAAP Net income		$	23			-		$	36
Share-based compensation			10			-			10
Merger related expense			1			-			1
Interest expense (income)			(2	)		-			(2	)
Income tax expense			3			-			5
Non-GAAP Operating income		$	35			-		$	50

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		$	790			-		$	820												$	790			-		$	820
Gross profit			309			-			325			6			—			—				315			-			331
Gross margin			39	%		-			40	%												40	%		-			40	%
Operating expenses			261			-			262			(30	)		(2	)		(7	)			222			-			224
Operating income			48			-			63			36			2			7				93			-			108
Net income		$	48			-		$	62			36			2			2			$	89			-		$	102
Income per diluted common share		$	0.72			-		$	0.92												$	1.32			-		$	1.52

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		$	48		-		$	62		$	89		-		$	102
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			3		-			3			3		-			3
Diluted weighted average shares outstanding			66		-			66			66		-			66
Net income per common share:
Income per diluted common share		$	0.72		-		$	0.92		$	1.32		-		$	1.52

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		$	48			-		$	62
Share-based compensation			36			-			36
Amortization			2			-			2
Merger related expense			7			-			7
Interest expense (income)			(6	)		-			(6	)
Income tax expense			6			-			7
Non-GAAP Operating income		$	93			-		$	108