Veeco Instruments is seeing artificial intelligence demand translate into stronger semiconductor equipment orders and deeper customer engagement, giving management increased visibility into 2027 as the company expands manufacturing capacity.
Veeco said the rapid expansion of AI is increasing demand across its portfolio of advanced semiconductor manufacturing technologies. The company specifically highlighted robust order activity and growing customer engagement as AI and high-performance computing drive investment in advanced devices.
Veeco’s equipment portfolio includes laser annealing, ion beam, MOCVD, single-wafer etch and clean, and lithography technologies used in semiconductor fabrication and advanced packaging.
Management said the stronger demand environment is supporting growing visibility into 2027 while Veeco executes its manufacturing expansion strategy.
Q2 revenue increased 16.5% to $193.5 million from $166.1 million a year earlier. GAAP net income was $11.9 million compared with $11.7 million, while non-GAAP net income reached $21.8 million compared with $21.5 million.
Veeco’s Q2 gross profit increased to $74.8 million from $68.7 million. Research and development spending increased to $33.3 million from $31.6 million as the company continues investing in semiconductor process technology.
The company expects Q3 revenue between $200 million and $220 million, which would represent another sequential increase at the midpoint. Non-GAAP diluted EPS is expected between $0.35 and $0.49.
Veeco also revised its full-year outlook and now expects 2026 revenue of $780 million to $810 million, GAAP diluted EPS of $0.78 to $1.02 and non-GAAP diluted EPS of $1.36 to $1.61.
The company’s outlook also includes the pending merger with Axcelis, although completion remains subject to regulatory approvals and other closing conditions.
KEY QUOTES:
“Veeco delivered strong quarterly results, exceeding market expectations while continuing to build momentum across our business. 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.”
Bill Miller, Ph.D., Chief Executive Officer Of Veeco Instruments
