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Veeco Instruments Inc.
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$2.9B
Market Cap
48.4
P/E
0.68
PEG
5.2%
ROCE
4.3%
ROE
0.30
D/E
6.6%
OPM
-44.8%
% from 52W High
79
α RS
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Currency-adjusted total returns for VECO including FX impact
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Ratio Health
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About

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices in the United States, Europe, the Middle East, and Africa, China, Rest of the Asia-Pacific, and internationally. It offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, atomic layer deposition, and other deposition systems. The company’s process equipment systems are used in the production of a range of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices. In addition, it markets and sells its products to integrated device manufacturers and foundries; outsourced semiconductor assembly and test companies; and hard disk drive and photonics manufacturers, as well as research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.

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📊 MIXED Veeco reports Q1 2026 revenue $158M, secures $250M+ orders for AI-driven indium phosphide lasers.
Revenue & Profitability
Q1 2026 revenue was $158 million, non-GAAP operating income was $9 million, net income $9 million, and diluted EPS $0.14. Gross margin was 36%. For Q2 2026, guidance is revenue $170-190M, gross margin 38-40%, EPS $0.20-0.32. Full year 2026 guidance is revenue $740-800M and EPS $1.50-1.85. Cash and short-term investments ended Q1 at $383 million.
Outlook
Management sees a significant industry inflection driven by AI and high-performance computing, with increasing demand for optical interconnects in data centers, expanding EUV adoption, and growth in HBM memory. Compound semiconductor SAM is projected to reach $700M in 2030 for indium phosphide lasers. Headwinds include declining mature-node China business, partially offset by AI-driven growth.
Growth Drivers
Key growth levers include: 1) AI infrastructure driving orders for MOCVD, wet processing, and IBD tools for indium phosphide lasers ($250M+ orders, delivery into 2027). 2) Advanced packaging (wet processing and lithography) with major OSAT volume orders. 3) Memory opportunities via LSA evaluations at a second DRAM manufacturer and IBD for low-resistance films. 4) Data storage HDD business doubling in 2026. 5) GaN power with pilot line order for 300mm system.
Balance Sheet & CapEx
Q1 2026 CapEx was $5 million. The company is expanding manufacturing capacity: Spector IBD capacity is planned to increase 10X from current levels by early 2027, with potential to double again. Wet processing capacity is being expanded through facility enhancements and an outsourced contract manufacturer in Southeast Asia. Advanced packaging capacity is also being increased to meet sustained customer demand.
Margins
Q1 2026 gross margin was 36%, below prior quarter due to mix and an $8 million revenue impact from a China license delay. Q2 guidance implies gross margin improvement to 38-40%. Management expects operating leverage from higher revenue, with OpEx guided to $52-55M in Q2. Full year margins are implied within the $1.50-1.85 EPS guidance on $740-800M revenue.
Key Risks
Risks flagged include: 1) China regulatory licensing issue for LSA shipments (customer required license from BIS, causing $8M revenue impact in Q1). 2) Declining mature-node China business as a headwind for 2026. 3) Delays in evaluation cycles for new products (e.g., IBD for memory extended evals through end of 2026). 4) Execution risks in ramping capacity 10X for Spector IBD. 5) Pending merger with Axcelis still awaiting China antitrust approval.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Revenue and earnings exceeded expectations, driven by strong demand in Advanced Packaging, Silicon Photonics, and data storage. Robust order momentum and customer visibility support raised 2026 guidance, with significant investments planned to double capacity by 2027.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw strong order momentum, $158M revenue, and major $250M+ orders for indium phosphide laser tools, with shipments ramping in 2027. Guidance for 2026 is reiterated, with growth driven by AI, advanced packaging, and silicon photonics.
Q4 2025 Q4 2025 2026-02-25
Record semiconductor revenue in 2025 was driven by laser annealing and advanced packaging, with strong order growth in compound semiconductors and data storage. 2026 guidance calls for 16% revenue growth at midpoint, margin improvement, and robust demand from AI and high-performance computing.
Q3 2025 Q3 2025 2025-11-05
Q3 revenue and EPS exceeded guidance, driven by strong demand in AI and advanced packaging. The pending Accellis merger is expected to expand market reach and product offerings, while Q4 guidance anticipates lower gross margins due to product mix.
Q2 2025 Q2 2025 2025-08-06
Q2 2025 results exceeded guidance with $166M revenue and strong semiconductor growth, especially in advanced packaging for AI. Gross margin was 43%, and China revenue declined as expected. Q3 outlook projects $150M-$170M revenue and continued focus on AI-driven demand.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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