Axcelis Technologies reported second-quarter 2026 revenue of $215.2 million, up 10.6% from $194.5 million a year earlier and above the company’s expectations. The stronger performance was driven by higher semiconductor equipment system shipments and increased customer service and installed base (CS&I) volume.

Demand in the memory semiconductor market remained robust, while Axcelis also reported positive momentum in power semiconductors. The company is seeing improving customer engagement and utilization trends in its General Mature market as customers respond to strengthening demand from data center, industrial and automotive applications.

GAAP gross margin was 42.4%, down from 44.9% in Q2 2025, while non-GAAP gross margin was 42.7%, compared with 45.2% a year earlier. GAAP operating margin declined to 9.4% from 14.9%, while non-GAAP operating margin was 14.7%, compared with 17.7% in the prior-year quarter.

GAAP net income was $23.3 million, or $0.75 per diluted share, compared with $31.4 million, or $0.98 per share, in Q2 2025. Non-GAAP net income was $33.0 million, equivalent to $1.06 per diluted share, compared with $36.0 million and $1.13 per share a year earlier. Adjusted EBITDA totaled $36.0 million versus $38.9 million in Q2 2025.

Despite lower year-over-year margins and earnings, management highlighted improving operating leverage as equipment demand strengthens. Axcelis expects its financial performance to improve through the remainder of 2026, supported by stronger systems demand and continued strength in its CS&I aftermarket business.

The improving power semiconductor environment is particularly important for Axcelis. Management specifically highlighted positive momentum in the Power market, alongside stronger utilization and customer activity in mature-node applications. The company recently completed a successful evaluation of its Purion XEmax high-energy ion implanter at a leading foundry for production of power management ICs, highlighting increasing implantation requirements for advanced power devices.

Axcelis now expects to deliver year-over-year revenue growth in 2026, with the improving market momentum expected to continue into 2027. The revised outlook reflects continued strength in memory alongside improving conditions across power, data center, industrial and automotive semiconductor markets.

For Q3 2026, Axcelis expects revenue of approximately $230 million, representing sequential growth of about 6.9%. GAAP diluted EPS is expected to be approximately $0.76, while non-GAAP diluted EPS is forecast at approximately $1.11.

Axcelis is also progressing toward completion of its pending merger with Veeco. The company said it is focused on satisfying the remaining closing conditions and continues to expect the transaction to close during the second half of 2026.

Original – Axcelis Technologies