Axcelis Technologies, Inc. reported financial results for the fourth quarter and full year ended December 31, 2025, highlighting quarterly performance that exceeded the company’s outlook and another record quarter in Customer Support, Installations & Services (CS&I).
For the fourth quarter, Axcelis reported revenue of $238 million. GAAP gross margin was 47.0%, while non-GAAP gross margin was 47.3%. GAAP operating margin came in at 15.2%, with non-GAAP operating margin at 21.1%. GAAP diluted earnings per share were $1.10, and non-GAAP diluted EPS were $1.49.
President and CEO Russell Low said Axcelis “exited 2025 on a strong note,” pointing to fourth-quarter results that exceeded expectations and a record quarter of CS&I revenue. He attributed CS&I performance to the company’s expanding installed base and its focus on upgrades and service contracts. Low added that Axcelis continues to operate with discipline as customers navigate mixed demand conditions in Power and General Mature markets, while demand trends in the Memory market are showing improvement, which the company expects to continue into 2026.
Low also said the company remains focused on completing its pending merger with Veeco Instruments and reiterated confidence in the strategic rationale for the combination. He noted that the combined company is expected to be better positioned to benefit from long-term growth drivers including AI, electrification and next-generation device architectures, leveraging complementary portfolios and teams.
Executive Vice President and CFO Jamie Coogan said the company’s fourth-quarter execution included record CS&I performance and gross margins that came in above expectations, supported by operational discipline, favorable mix and the strength of Axcelis’ aftermarket strategy. For the full year, Coogan highlighted double-digit CS&I growth, gross margin expansion and more than $100 million of free cash flow, while continuing investment in innovation and returning more than $120 million of capital to shareholders.
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