Veeco Instruments reported second-quarter 2026 revenue of $193.5 million, up 16.5% from $166.1 million in Q2 2025, as strengthening demand associated with AI infrastructure supported the company’s portfolio of advanced semiconductor manufacturing technologies.

GAAP net income reached $11.9 million, compared with $11.7 million a year earlier, while diluted EPS was $0.18 versus $0.20 in Q2 2025. On a non-GAAP basis, net income increased slightly to $21.8 million from $21.5 million, with diluted EPS of $0.33 compared with $0.36 a year earlier. Non-GAAP operating income remained unchanged year-over-year at $23.1 million.

CEO Bill Miller said the rapid expansion of AI is generating increased demand across Veeco’s technology portfolio, resulting in robust order activity and deeper customer engagement. The company is also seeing improved visibility into 2027 and is executing a manufacturing expansion strategy to support its longer-term growth expectations.

The combination of double-digit revenue growth and strong order activity indicates improving demand for semiconductor capital equipment exposed to AI-related investment. Veeco’s comments on deeper customer engagement and greater 2027 visibility are particularly significant, suggesting that current demand is translating into a broader and potentially more durable equipment investment cycle rather than only near-term shipment growth.

For Q3 2026, Veeco expects revenue of $200 million to $220 million. At the $210 million midpoint, revenue would increase approximately 8.5% sequentially from Q2. GAAP diluted EPS is expected between $0.20 and $0.34, while non-GAAP diluted EPS is forecast at $0.35 to $0.49.

Veeco also revised its full-year 2026 outlook, forecasting revenue of $780 million to $810 million. At the midpoint, this implies approximately $795 million in annual revenue. GAAP diluted EPS is expected at $0.78 to $1.02, with non-GAAP diluted EPS of $1.36 to $1.61.

The results reinforce the improving outlook for semiconductor equipment demand tied to AI infrastructure. For the broader power semiconductor supply chain, Veeco’s strengthening orders and manufacturing expansion are also noteworthy given the company’s exposure to advanced materials and compound-semiconductor processing. Combined with management’s improving visibility into 2027, the Q2 results point toward continued equipment investment as customers expand capacity to address AI-driven semiconductor demand.

Original – Veeco Instruments