Veeco Instruments Reports 16% Net Sales Increase in Q2 2026, Advances Merger with Axcelis Technologies

Veeco Instruments Inc. reported a net sales increase of 16% for the second quarter of 2026, reaching $193.5 million compared to $166.1 million in the same period last year. The company's gross profit also rose to $74.8 million, up from $68.7 million, although gross margins decreased slightly due to a less favorable product mix and increased logistics costs. Operating income for the quarter was $11.9 million, a decrease from $12.4 million in the prior year, while net income was $11.9 million, reflecting a marginal increase from $11.7 million.

For the first half of 2026, Veeco's total revenue was $351.8 million, a 6% increase from $333.4 million in the first half of 2025. However, the company experienced a decline in operating income, which fell to $9.2 million from $26.5 million in the previous year, primarily due to increased operating expenses, including $3.5 million in merger-related costs. The net income for the first half was $11.5 million, down from $23.7 million in the same period last year.

Strategically, Veeco is advancing its merger with Axcelis Technologies, which was approved by both companies' boards and stockholders. The merger is expected to close in the second half of 2026, pending regulatory approvals. This merger is anticipated to enhance Veeco's market position and operational capabilities. Additionally, the company has been focusing on expanding its product offerings, particularly in semiconductor technologies, which accounted for 68% of its second-quarter revenue. Notable advancements include the successful evaluation and follow-on orders for its Nanosecond Annealing system from Tier 1 customers.

Operationally, Veeco's customer base has shown growth, particularly in the United States and China, where sales increased significantly. The company reported a 170% increase in U.S. sales and a 75% increase in sales to China for the second quarter. However, sales in the Rest of APAC and EMEA regions declined. The company continues to invest in research and development, with R&D expenses rising to $33.3 million in the second quarter, reflecting its commitment to innovation in semiconductor manufacturing technologies.

Looking ahead, Veeco anticipates continued growth driven by investments in artificial intelligence and advanced semiconductor technologies. The company expects to benefit from the increasing demand for high-performance computing and advanced connectivity solutions, which are projected to drive long-term growth in the semiconductor equipment market. Veeco's management remains optimistic about its strategic initiatives and market positioning as it navigates the evolving landscape of the semiconductor industry.