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Nexperia reported revenue of $355.6 million for the second quarter of 2026, an increase of 18.4% compared with Q1, as the semiconductor manufacturer continued its operational recovery and capacity expansion efforts.
The sequential improvement reflected operational progress, capacity ramp-up initiatives and strengthening demand across several of Nexperia’s key end markets. The company highlighted particularly strong demand from Computing and Data Storage applications, supported by continued investment in AI infrastructure and data centers.
Nexperia also reported encouraging developments across the broader automotive and industrial markets during the quarter.
Higher revenue contributed to improved profitability and cash generation. Nexperia said its operations outside China achieved positive net income and positive operating cash flow during Q2. The company also ended the quarter with what it described as a healthy cash position, although specific figures for profitability, operating cash flow and cash balances were not disclosed.
Interim CEO Stefan Tilger said the company continued to make progress in stabilizing its supply chain, increasing capacity and improving customer deliveries while maintaining investment in future operations.
Nexperia plans to continue focusing on supply-chain stabilization, capacity expansion, product development and delivery reliability as its recovery progresses.
The reported results exclude several former Chinese subsidiaries. Nexperia deconsolidated Nexperia (China) Ltd., Nexperia (Shanghai) Ltd., Nexperia Technology (Shanghai) Ltd., Nexperia (Wuxi) Ltd. and ITEC Technology (Wuxi) Ltd. effective October 1, 2025, following the loss of actual control over those entities. The Q2 statement therefore does not cover their operations or financial performance.
Nexperia also said publication of its full-year 2025 financial results remains pending and will be announced separately.
Original – Nexperia
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Wolfspeed reported approximately $150 million in consolidated revenue for the fourth quarter of fiscal 2026, in line with the midpoint of its guidance, while continued growth in AI data center applications provided a bright spot against still-challenging profitability.
AI data center revenue more than doubled year-over-year during fiscal 2026 and increased approximately 20% sequentially in the fourth quarter. Wolfspeed characterized AI data centers as a moderate but growing opportunity and has established a dedicated data center solutions team in Silicon Valley to accelerate penetration of the market.
The company is also expanding its engagement with AI power infrastructure customers. During the quarter, Wolfspeed highlighted its strategic collaboration with LITEON Technology, where its SiC technology has been qualified for 800VDC power sidecar and compute-rack power supply platforms targeting next-generation AI data centers.
Technology development remained another major focus. Wolfspeed launched its fifth-generation SiC MOSFET platform, representing the latest step in its device roadmap. Its 10kV SiC MOSFET was also named a “Top Innovation” at the 2026 Power Conversion and Intelligent Motion conference, while the company announced a memorandum of understanding with GE Aerospace.
Financial performance, however, remains under significant pressure. GAAP gross margin was negative 25% in Q4, while non-GAAP gross margin was negative 20%. Wolfspeed recorded a GAAP net loss of $145 million and adjusted EBITDA of negative $62 million, with operating cash flow of negative $54 million.
Liquidity remained substantial at the end of the quarter, with $1.1 billion in cash, cash equivalents and short-term investments as of June 28, 2026. Management continues to focus on reducing debt and its cost of capital. During Q4, holders of $46 million of convertible notes voluntarily converted their debt into equity, further modifying the company’s capital structure.
For the first quarter of fiscal 2027, Wolfspeed expects revenue between $140 million and $160 million, putting the midpoint at approximately $150 million and implying broadly flat sequential revenue. Non-GAAP gross margin is expected to remain negative, while non-GAAP operating expenses are forecast between $62 million and $66 million.
Original – Wolfspeed
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Analog Devices (ADI) reported fiscal third-quarter 2026 revenue of $4.02 billion, with year-over-year growth led by its Data Center and Industrial businesses as strengthening demand across products and regions supported the company’s performance.
Management said results exceeded the midpoint of ADI’s revenue, margin and earnings outlook. CEO Vincent Roche attributed the performance to broad-based demand as well as the company’s combination of product innovation, customer relationships and manufacturing flexibility, with AI-related opportunities becoming an increasingly important part of its growth strategy.
Data Center was one of the principal growth drivers during the quarter, highlighting ADI’s exposure to expanding AI and high-performance computing infrastructure. While ADI is primarily associated with analog and mixed-signal semiconductors rather than discrete power devices, its portfolio plays an important role in power management, monitoring, signal processing and connectivity across increasingly power-intensive data-center architectures.
Cash generation remained particularly strong. On a trailing 12-month basis, ADI generated $5.5 billion in operating cash flow and $4.9 billion in free cash flow, equivalent to approximately 40% and 36% of revenue, respectively. During the third quarter alone, the company returned $1.7 billion to shareholders through dividends and share repurchases.
Management indicated that demand strengthened across both the product portfolio and geographic regions during Q3. CFO Richard Puccio said this momentum is reflected in what the company described as a record fourth-quarter outlook and is expected to provide momentum entering fiscal 2027.
For fiscal Q4 2026, ADI forecasts revenue of $4.3 billion, plus or minus $100 million. At the midpoint, this would represent sequential growth of approximately 7% from Q3. Reported operating margin is expected to be approximately 42.6%, plus or minus 150 basis points, while adjusted operating margin is forecast at approximately 52.0%, plus or minus 100 basis points.
Original – Analog Devices
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CVD Equipment reported second-quarter 2026 revenue from continuing operations of $2.0 million, down 42.6% year-over-year, as weak system bookings during 2025 and early 2026 continued to weigh on equipment shipments. Orders totaled $1.2 million, compared with $1.5 million a year earlier, while backlog declined sequentially to $3.9 million from $4.6 million at the end of March.
Despite lower revenue, gross margin improved to 16.8% from 14.1% in the prior-year quarter, primarily because of a higher proportion of non-system revenue. The company nevertheless recorded a $1.4 million net loss from continuing operations, or $0.20 per share, compared with a $1.3 million loss, or $0.19 per share, a year earlier.
The quarter was dominated financially by the April 1 divestiture of CVD Equipment’s SDC division for $17.4 million. The transaction generated approximately $15.0 million in net cash proceeds after transaction costs and estimated tax payments, and produced a $13.9 million gain from discontinued operations during Q2. Including transaction costs recognized in the first quarter, the total net gain from the divestiture was $13.5 million.
As a result, reported Q2 net income reached $12.6 million despite the loss in continuing operations. The transaction also significantly strengthened CVD Equipment’s balance sheet, with cash and cash equivalents rising to $23.5 million from $8.7 million at the end of 2025. Stockholders’ equity increased to $36.0 million from $24.7 million, while the company ended the quarter with no long-term debt.
Management described the SDC sale as a transformational step that provides greater financial flexibility while CVD evaluates strategic alternatives and pursues opportunities in its remaining target markets. The company has also completed a major operational restructuring intended to substantially reduce its fixed-cost base.
For the semiconductor equipment business, however, near-term demand remains challenging. Management said customer orders continue to be affected by broader economic and geopolitical uncertainty. One positive development was a $0.8 million order for a PowderCoat 450 system, representing roughly two-thirds of total Q2 bookings.
That order also introduces additional uncertainty. Following quarter-end, the customer responsible for the $0.8 million system order entered a prepackaged Chapter 11 bankruptcy process. Although unsecured trade creditors are expected to remain unimpaired under the proposed restructuring, CVD Equipment is assessing whether the situation could affect the order, backlog, financial results or cash flows.
Original – CVD Equipment
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Semiconductor Manufacturing International Corporation (SMIC) reported second-quarter 2026 revenue of $3.006 billion, up 20% sequentially from $2.506 billion in Q1 and approximately 36% from $2.209 billion in the year-ago quarter. The results indicate a significant acceleration in foundry demand during the quarter.
Gross profit increased to $760.6 million, compared with $503.6 million in Q1 2026 and $449.8 million in Q2 2025. Gross margin expanded sharply to 25.3%, up 5.2 percentage points sequentially from 20.1% and 4.9 percentage points from 20.4% a year earlier.
Management attributed the improving industry environment partly to continued momentum and spillover effects from artificial intelligence. SMIC expects these trends to persist during the second half of 2026 and drive broader demand for integrated-circuit manufacturing rather than remaining concentrated solely in processors directly associated with AI.
For the third quarter, SMIC expects revenue to increase another 2% to 4% sequentially. Based on Q2 revenue, this implies approximately $3.07 billion to $3.13 billion in Q3 sales. Gross margin is forecast at 26% to 28%, representing further improvement from the second quarter.
SMIC said it plans to flexibly allocate its existing manufacturing capacity while accelerating qualification of newly added capacity. The objective is to help address supply constraints emerging across the semiconductor industry chain as demand strengthens.
Original – Semiconductor Manufacturing International Corporation
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Toshiba reported a strong start to FY2026, with first-quarter net sales rising 27% year-over-year to ¥937.1 billion from ¥737.9 billion. Operating income increased to ¥111.9 billion from ¥40.1 billion, nearly tripling, while return on sales (ROS) expanded sharply to a record Q1 level of 11.9% from 5.4%. EBITDA reached ¥136.5 billion, more than doubling from ¥65.2 billion, with the EBITDA margin improving to 14.6%.
Growth was broad-based across Toshiba’s Energy, Digital Infrastructure, and Devices & Technology businesses, as well as Retail & Printing. Of particular relevance to the semiconductor market, Devices & Technology recorded higher sales in both HDDs and semiconductors. Toshiba said these businesses benefited from robust data-center demand associated with the rapid adoption of generative AI. Transmission & Distribution, Thermal Power and Industrial Systems were also identified as areas benefiting from the data-center investment cycle.
The results suggest Toshiba is gaining exposure to AI infrastructure through several layers of the value chain rather than through semiconductors alone. Rising data-center electricity requirements are supporting its power and grid infrastructure businesses, while AI storage requirements are benefiting HDD operations and semiconductor demand. This combination gives Toshiba exposure to both computing infrastructure and the electrical systems required to support expanding data-center capacity.
Operating performance also benefited from management reforms, including pricing measures, improvements in marginal profit and reductions in fixed costs. Toshiba said these measures, together with higher sales, contributed to increased operating income across all business areas. The company is targeting a group-wide ROS of 10% for FY2026 under its Toshiba Revitalization Plan.
Net income surged to ¥4.467 trillion from ¥146.9 billion a year earlier. However, this extraordinary increase was predominantly driven by non-operating income associated with the valuation of Toshiba’s Kioxia shares rather than underlying operating performance. Income related to Kioxia reached ¥6.329 trillion during the quarter, compared with just ¥6.1 billion in Q1 FY2025. This distinction is important when assessing the underlying improvement in Toshiba’s core businesses.
Free cash flow increased to ¥617.3 billion from ¥262.7 billion, supported by improved operating cash flow and investing cash flow, including proceeds associated with Kioxia shares. Meanwhile, orders remained strong, particularly in the Energy business, and Toshiba’s order backlog reached its highest level since the company began the current disclosure format in FY2018.
For the power semiconductor industry, the most important takeaway is Toshiba’s explicit identification of data centers and generative AI as drivers of strength across semiconductors, industrial systems, transmission and distribution, and power-generation equipment. The results reinforce the broader trend in which AI infrastructure investment is propagating beyond processors and memory into power semiconductors, power conversion, grid equipment and supporting electrical infrastructure. Toshiba plans to accelerate investment and commercial activity around Energy, Data Center, Physical AI and Defense as it seeks further growth from FY2027.
Original – Toshiba
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Power Integrations reported second-quarter 2026 revenue of $118.9 million, up 10% sequentially and 3% year-over-year, supported by continued growth in industrial markets. The company also reported improving profitability and lower inventories both in the distribution channel and on its balance sheet.
GAAP net income reached $9.8 million, or $0.17 per diluted share, improving substantially from $0.06 per share in Q1 2026 and $0.02 in Q2 2025. Non-GAAP net income was $20.9 million, or $0.37 per diluted share, compared with $0.25 in the previous quarter and $0.35 a year earlier. Operating cash flow totaled $22.0 million during the quarter.
CEO Jen Lloyd highlighted renewable energy, grid infrastructure and AI data centers as important demand drivers, with customers increasingly requiring higher efficiency, reliability and power density. The improving industrial environment is particularly relevant for Power Integrations given its exposure to high-voltage power conversion across these applications.
Management also highlighted the company’s newly announced 2200 V PowiGaN technology as an important component of its longer-term growth strategy. The technology significantly extends Power Integrations’ high-voltage GaN capabilities and is intended to support customer roadmaps in markets including AI data centers, renewable energy and grid infrastructure.
The 2200 V development could become strategically important as higher-voltage power architectures create opportunities for GaN in applications historically dominated by silicon and SiC. Combined with Power Integrations’ existing high-voltage integrated power products, the technology gives the company an avenue to participate in emerging higher-voltage conversion architectures while benefiting from GaN’s high switching-frequency capabilities.
For Q3 2026, Power Integrations expects revenue between $122 million and $130 million. At the $126 million midpoint, this represents approximately 6% sequential growth, indicating that the recovery is expected to continue into the September quarter.
GAAP gross margin is forecast between 53.3% and 54.4%, while non-GAAP gross margin is expected between 54% and 55%. GAAP operating margin is projected at 8.3% to 10.9%, with non-GAAP operating margin of 17% to 19%. The outlook therefore points to continued revenue growth accompanied by relatively strong profitability.
Power Integrations also continues returning cash to shareholders, paying a $0.215-per-share dividend in June and declaring another $0.215 dividend payable at the end of September.
For the power semiconductor market, the quarter provides two positive signals: near-term demand conditions are improving, particularly in industrial applications, while longer-term investment in AI data centers, renewable energy and grid infrastructure is creating new opportunities for high-voltage power conversion. The combination of sequential revenue growth, improving channel inventories and the expansion of PowiGaN to 2200 V positions Power Integrations to participate in both the cyclical recovery and structural shift toward higher-voltage, higher-power-density architectures.
Original – Power Integrations
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Infineon Technologies reported record revenue of €4.172 billion for the third quarter of fiscal 2026, continuing its growth trajectory as demand strengthens across AI data centers, grid infrastructure and automotive markets.
Segment Result reached €797 million, corresponding to a Segment Result Margin of 19.1%. CEO Jochen Hanebeck said an increasing number of Infineon’s target markets are showing positive trends, with power supply solutions for AI data centers remaining the company’s most important growth driver.
AI infrastructure is emerging as an increasingly significant source of long-term demand for Infineon’s power semiconductor portfolio. The company has concluded, or is negotiating, multi-year capacity reservation agreements with leading AI customers representing a cumulative revenue volume in the high single-digit billions of euros. These agreements provide increased visibility into demand as AI data centers transition toward higher-power and more efficient power architectures.
Infineon is also benefiting from rising global investment in electricity grid infrastructure, creating additional demand for power semiconductor technologies. Meanwhile, automotive orders are picking up noticeably, indicating improving conditions in another of the company’s core power semiconductor markets.
For Q4 FY2026, Infineon expects revenue to increase by a good 13% sequentially to approximately €4.7 billion, based on an assumed EUR/USD exchange rate of 1.15. The Segment Result Margin is expected to rise significantly to around 23%, implying stronger operating leverage alongside the anticipated revenue increase.
For the full fiscal year, Infineon now expects revenue of approximately €16.3 billion. The adjusted gross margin is expected to remain in the low-to-mid-40% range, while the Segment Result Margin is forecast at around 20%.
Infineon raised its adjusted free cash flow outlook to approximately €1.85 billion from €1.65 billion previously. However, its reported free cash flow forecast was reduced to approximately €0.9 billion from €1.25 billion, now reflecting the acquisition of the sensor portfolio from ams OSRAM completed in July 2026.
The combination of record quarterly revenue, accelerating AI-related demand, grid infrastructure investment and improving automotive orders points to a broadening recovery for Infineon. Most notably, the high single-digit billion-euro volume represented by AI customer capacity agreements indicates that data center power is evolving from a near-term growth driver into a potentially significant multi-year business for the company.
Original – Infineon Technologies
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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
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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
