Veeco Instruments Inc.

Veeco Instruments (Nasdaq: VECO) supplies equipment used to manufacture and package semiconductors. Its products include laser annealing tools, which heat chip materials precisely, and systems for depositing, etching and cleaning thin layers.

More sales, limited profit growth

Revenue rose 16.5% in the second quarter of 2026. Operating income edged lower and net income was nearly flat. A larger diluted share count helped reduce GAAP earnings per share to $0.18 from $0.20 a year earlier.

Both quarters ended June 30. Operating cash flow for the first six months of 2026 was $59.4 million, up from $29.0 million a year earlier. At June 30, cash was $214.5 million and short-term investments were $214.9 million. Long-term debt had a carrying amount of $226.5 million.

The revenue forecast rose while the earnings forecast fell

Veeco’s May forecast put second-quarter revenue at $170 million to $190 million. Actual revenue of $193.5 million exceeded the top of that range.

In August, Veeco raised its full-year 2026 revenue forecast to $780 million to $810 million, from $740 million to $800 million. It lowered the expected GAAP diluted earnings range to $0.78 to $1.02 a share, from $0.83 to $1.17. These remain the August forecasts; third-quarter results had not been reported when this profile was updated.

Waiting for the Axcelis merger

The proposed all-stock merger would exchange each Veeco share for 0.3575 Axcelis shares. Shareholders of both companies approved it in February 2026.

On November 2, the companies said they now expected to close by the end of the first quarter of 2027, rather than in the second half of 2026. China’s competition review remains pending, and the companies plan to renew their U.S. antitrust filing as the existing clearance approaches expiry.

Veeco remains a separate company until closing.