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Axcelis Technologies reported first-quarter 2026 financial results slightly above expectations, supported by continued strength in memory-related demand and growth in its customer support and installed base business.
Revenue for Q1 2026 reached $199.0 million, up modestly from $192.6 million in the prior-year period. However, profitability declined, with GAAP net income falling to $9.2 million from $28.6 million a year earlier, reflecting lower margins and continued market softness in certain end segments. Gross margin declined to 40.5% from 46.1%, while operating margin dropped to 4.0%.
The company highlighted DRAM and high-bandwidth memory (HBM) demand as key growth drivers, benefiting from accelerating AI infrastructure deployment. Customer support and installed-base services (CS&I) also remained a strategic strength, becoming increasingly important as Axcelis expands its global installed equipment footprint.
At the same time, management noted that continued digestion of excess capacity in power semiconductor and mature-node markets is offsetting growth in memory. This reflects ongoing cyclical weakness in portions of the power semiconductor ecosystem following significant investment expansion over the past several years.
Despite the softer margin environment, Axcelis maintained a strong balance sheet with approximately $570 million in cash and continued positive free cash flow generation, providing flexibility to support future growth initiatives and ongoing R&D investments.
Looking ahead, the company expects second-quarter 2026 revenue of approximately $205 million and anticipates a stronger second half of the year supported by improving order trends. Axcelis also reaffirmed expectations for its planned merger with Veeco Instruments to close in the second half of 2026.
From a market perspective, Axcelis’ results reinforce the divergence currently shaping semiconductor capital equipment markets: strong AI-driven memory investment, particularly in HBM, contrasted with slower recovery in mature-node and power semiconductor capacity additions. The company’s growing services business also highlights a broader industry trend toward recurring revenue streams and lifecycle support as installed tool bases expand globally.
Original – Axcelis Technologies
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Axcelis Technologies announced that David Ryzhik, Senior Vice President of Investor Relations and Corporate Strategy, has been appointed Interim Chief Financial Officer effective March 12. The appointment follows the departure of James Coogan, who is leaving the company to pursue a CFO role at another public company in a different industry. Coogan will remain with Axcelis through April 24 to support the transition. The company has initiated a search for a permanent CFO with the help of an executive search firm.
President and CEO Russell Low said the company is confident in Ryzhik’s ability to lead the finance organization during the transition, noting his deep knowledge of Axcelis’ business strategy, financial operations and investor relations activities. Low also highlighted Ryzhik’s involvement in the company’s pending merger with Veeco Instruments and his relationships with financial stakeholders.
Ryzhik said he is honored to assume the interim CFO position and will continue working with the leadership team to execute the company’s strategy, advance integration planning related to the Veeco merger and focus on long-term shareholder value creation.
Low also thanked outgoing CFO James Coogan for his contributions to the company, noting that during his tenure he helped strengthen the finance organization and support the company’s operational discipline and strategic positioning.
Ryzhik has more than 20 years of experience in finance and investor relations. He joined Axcelis in July 2024 as Senior Vice President of Investor Relations and Corporate Strategy. Previously, he served as Vice President of Investor Relations at MKS Instruments and earlier worked as a senior equity research analyst at Susquehanna International Group and as a senior research associate at Brean Capital. Earlier in his career he held financial roles with the New York City Mayor’s Office of Management and Budget and the New York City Fire Department.
Ryzhik holds an MBA in Financial Management and a Bachelor of Business Administration in Finance and Accounting from Pace University Lubin School of Business and serves as a board member of the Boston chapter of the National Investor Relations Institute.
Original – Axcelis Technologies
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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.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced that its stockholders approved all proposals related to the company’s pending merger with Veeco Instruments Inc. at Axcelis’ Special Meeting of Stockholders. The final voting results will be disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission.
Completion of the merger remains subject to customary closing conditions, including final outstanding regulatory approval from the State Administration for Market Regulation of the People’s Republic of China. Axcelis and Veeco continue to expect the transaction to close in the second half of 2026.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. has announced financial results for the third quarter ended September 30, 2025, reporting better-than-expected sales and earnings, along with record revenue in its Customer Support and Innovation (CS&I) segment.
Third quarter revenue was $213.6 million. GAAP gross margin was 41.6 percent, while non-GAAP gross margin came in at 41.8 percent. GAAP operating margin was 11.7 percent and non-GAAP operating margin reached 18.2 percent. GAAP diluted earnings per share were $0.83, and non-GAAP diluted earnings per share were $1.21.
President and CEO Russell Low stated, “We delivered another solid quarter, with sales and earnings both exceeding our expectations. We are also pleased to report record CS&I revenue in the quarter, reflecting the success of our aftermarket strategy and the continued expansion of our installed base. We are executing on our product development roadmap and customer engagement initiatives with focus and urgency, while maintaining disciplined cost controls. These actions have enabled us to successfully navigate the anticipated cyclical digestion period across our markets in 2025.”
Low continued, “We entered the fourth quarter with a solid financial foundation and are well poised to execute on our strategy as we enter into our next chapter of growth and innovation. Our recently announced merger with Veeco Instruments marks a critical milestone that we believe will position the combined company to capitalize on powerful secular tailwinds including AI and electrification. By bringing our two companies together, we believe we are building a leading semiconductor equipment company with the capabilities, resources, and financial foundation to drive sustainable growth and value creation for shareholders and deliver meaningful benefits to all stakeholders.”
Executive Vice President and Chief Financial Officer Jamie Coogan added, “We generated robust operating leverage through higher volume and disciplined cost management, translating into strong free cash flow. With over $590 million in cash and investments on the balance sheet, Axcelis has ample flexibility to capitalize on our value-enhancing strategic initiatives and long-term growth priorities.”
Key Q3 2025 Financial Highlights:
- Revenue: $213.6 million (compared to $256.6 million in Q3 2024)
- GAAP gross margin: 41.6% (vs. 42.9% in Q3 2024)
- GAAP operating margin: 11.7% (vs. 18.3%)
- GAAP net income: $26.0 million (vs. $48.6 million)
- GAAP diluted EPS: $0.83 (vs. $1.49)
- Non-GAAP gross margin: 41.8% (vs. 43.0%)
- Non-GAAP operating margin: 18.2% (vs. 21.7%)
- Adjusted EBITDA: $43.2 million (vs. $59.7 million)
- Non-GAAP net income: $37.9 million (vs. $56.2 million)
- Non-GAAP diluted EPS: $1.21 (vs. $1.72)
For the fourth quarter ending December 31, 2025, Axcelis expects revenue of approximately $215 million. GAAP diluted earnings per share are projected at approximately $0.76, with non-GAAP earnings per share expected to be approximately $1.12.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. and Veeco Instruments Inc. announced that they have entered into a definitive agreement to combine in an all-stock merger. The combined company is expected to have an enterprise value of approximately $4.4 billion based on Axcelis’ and Veeco’s closing share prices as of September 30, 2025, and outstanding debt as of June 30, 2025.
Together, Axcelis and Veeco will be a leading semiconductor equipment company serving complementary, diversified and expanding end markets. The combined company will have an attractive operating profile, a robust R&D innovation engine and an expanded product portfolio with opportunities for cost and revenue synergies. On a pro-forma basis for Fiscal Year 2024, the combined company generated revenue of $1.7 billion, non-GAAP gross margin of 44% and adjusted EBITDA of $387 million. These pro-forma figures do not reflect the anticipated synergies of the combination.
Under the terms of the agreement, Veeco shareholders will receive 0.3575 Axcelis shares for each share of Veeco they own. At closing, Axcelis shareholders are expected to own approximately 58%, and Veeco shareholders are expected to own approximately 42%, of the combined company, on a fully diluted basis. The merger agreement was approved unanimously by the boards of directors of both companies.
“This combination marks a transformational milestone for both Axcelis and Veeco, establishing a new leader in semiconductor capital equipment with complementary technologies, a diversified portfolio and an expanded addressable market opportunity,” said Dr. Russell Low, President and Chief Executive Officer of Axcelis. “We have long admired Veeco’s history of innovation and its track record of delivering breakthrough products. I had the privilege of previously working at Veeco and I hold deep appreciation for its incredible talent, culture and innovation. Together, we will be well-positioned to serve large and growing end markets poised to benefit from significant secular tailwinds, creating exciting opportunities for employees and accelerating next-generation innovation for our customers.”
“This merger capitalizes on the core competencies of both Veeco and Axcelis to address our customers’ critical needs,” said Dr. Bill MiIler, Chief Executive Officer of Veeco. “With increased R&D scale, the combination of these two exceptional businesses will accelerate our ability to solve material challenges, enable advanced chip manufacturing and build an even stronger company that can deliver superior value for all stakeholders.”
Strategic Rationale and Financial Benefits
- Increases addressable market opportunity. By integrating complementary technologies, solutions and offerings, the combined company will expand its total addressable market to over $5 billion, with greater exposure to secular tailwinds including artificial intelligence and the corresponding demand for power solutions.
- Diversifies technology portfolio and market segments to advance customer roadmaps. The combination will create the fourth largest U.S. wafer fabrication equipment supplier by revenue, delivering meaningful scale and resources to better compete throughout the global semiconductor equipment value chain. The combined company will offer a differentiated and comprehensive product portfolio spanning ion implantation, laser annealing, ion beam deposition, advanced packaging solutions and MOCVD. The expanded portfolio will be supported by robust aftermarket services for the combined company’s global customers. These complementary capabilities are expected to provide revenue synergies through the integration of technology expertise, cross-selling and platform optimization.
- Combines complementary expertise and scale to deliver innovative solutions for customers. The combined company’s complementary teams and technical capabilities directly lead to stronger capacity, expanded R&D scale, accelerated innovation and will unlock opportunities across key geographies and end market segments. Furthermore, customers benefit from a more robust partner capable of supporting differentiated, next-generation technologies, accelerating their roadmaps.
- Resilient operating profile and strong balance sheet to drive growth and returns. On a pro-forma basis in 2024, the combined company generated a 44% non-GAAP gross margin and 22% adjusted EBITDA margin (excluding anticipated cost synergies). It is expected to have estimated pro-forma cash of over $900 million upon closing. The combined company’s strong balance sheet is expected to support the organic growth of the combined businesses and provide a solid foundation to deliver capital returns to shareholders. Axcelis and Veeco anticipate that, following the closing of the transaction, the combined company would execute a share repurchase program. Axcelis and Veeco expect annual run-rate cost synergies of $35 million within 24 months following closing, with the majority achieved within the first 12 months, and accretion to non-GAAP earnings per share within the first 12 months post-closing. Run-rate synergies exclude additional savings associated with share based compensation expense. Veeco’s $230 million in outstanding 2029 convertible bonds will be assumed by the combined company in connection with the transaction.
Governance, Leadership and Headquarters
Upon close, the combined company’s Board will be comprised of 11 directors, six of whom are from Axcelis, including Dr. Low, and four from Veeco, including Dr. Miller, who will also chair the Board’s Technology Committee. Thomas St. Dennis, who currently serves on the boards of both companies, will serve as Chairperson of the Board for the combined company. Jorge Titinger, current Chairperson of Axcelis, will remain on the Board of the combined company.
Dr. Low will serve as President and Chief Executive Officer of the combined company. James Coogan, currently Chief Financial Officer of Axcelis, will serve in the same role at the combined company.
Following the closing of the transaction, the combined company will have its headquarters in Beverly, Massachusetts. To reflect the transformational nature of the merger, the combined company will assume a new name, ticker symbol and brand following close.
Timing and Approvals
The transaction is expected to close in the second half of 2026, subject to approval by shareholders of both companies, the receipt of required regulatory approvals and the satisfaction of other customary closing conditions.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. will be participating in the International Conference on Silicon Carbide and Related Materials (ICSCRM 2025) taking place September 14 – 19, 2025, at the Bexco Convention Center in Busan, South Korea.
During the conference, Axcelis will be promoting the launch of the Company’s new Purion Power Series+™ and GSD Ovation ES platforms, designed specifically to enable improved device capability and productivity for next generation Power devices for all single wafer and batch applications.
Axcelis technologists and collaborators will present the following topics during the ICSCRM technical forum:
- Path for Superjunction Industrialization by Single Step High Energy Channeling Implant
Presented by Dr. Fulvio Mazzamuto, Axcelis Technologies - Development of High Energy Channeling Implantation Process for SiC Superjunction Devices
Presented by Dr. Reza Ghandi, GE Global Research - Effect of Silicon and Oxygen Pre-Implantation on Thermal Oxidation of 4H-SiC
Presented by Dr. Enrico Sangregorio, CNR IMM
President and CEO Dr. Russell Low, said, “We’re pleased to participate in ICSCRM 2025, one of the most important technology forums in the power semiconductor market. We are especially excited about presenting our work on next generation solutions for silicon carbide and related materials applications, which is the result of multiple collaborations with leading device makers and research consortium. Axcelis has deep technical expertise in this area, and we look forward to engaging with our customers and facilitating the exchange of novel insights.”
For more information on the event, visit the conference website at https://icscrm2025.org/.
Original – Axcelis Technologies
- Path for Superjunction Industrialization by Single Step High Energy Channeling Implant
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Axcelis Technologies, Inc. announced two major product launches designed to strengthen its leadership in enabling advanced power and engineered substrate devices.
The company introduced the GSD Ovation™ ES high current ion implanter, specifically developed for engineered substrate applications such as wafer splitting. Built on the proven GSD Ovation platform, the system delivers best-in-class Hydrogen and Helium implant capability, while offering unmatched flexibility and capital efficiency. It supports multiple substrate types—including SiC, LiTaO₃, and LiNbO₃—across a wide range of thicknesses and weights, and integrates advanced wafer handling, beam power, and cooling capabilities.
In parallel, Axcelis launched the Purion Power Series+™ ion implant platform, designed to improve device performance and productivity for next-generation power devices, including superjunction architectures.
The expanded product family includes the Purion H200+ SiC for high current medium energy applications, the Purion M+ SiC for medium current, and the Purion XE+ SiC and EXE+ SiC for high energy requirements. With flexibility to process multiple wafer sizes (150mm and 200mm), diverse substrate materials (SiC, Si, GaN, GaAs), and a range of implant temperatures, the platform delivers industry-leading throughput and capital efficiency.
Executives emphasized that both new platforms reflect Axcelis’ close collaboration with customers to address evolving manufacturing requirements in the power semiconductor market. Together, the GSD Ovation ES and Purion Power Series+ enhance Axcelis’ comprehensive ion implantation portfolio, positioning the company to support the industry’s transition to advanced materials and architectures that enable higher efficiency and performance in power devices.
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Axcelis Technologies, Inc. announced a Joint Development Program (JDP) with GE Aerospace focused on the development of production-worthy 6.5 to 10kV superjunction power devices. Processes will be developed on Axcelis’ Purion XEmax™ high energy implanter, which provides the industry’s highest beam currents over the broadest energy range — up to 15MeV.
This JDP supports the ‘Advanced High Voltage Silicon Carbide Switches’ project led by GE Aerospace as part of the Commercial Leap Ahead for Wide Bandgap Semiconductors (CLAWS) Hub, which is headed by North Carolina State University. This project will aim to improve the performance of power switches used in important emerging applications.
Silicon Carbide (SiC) wide bandgap semiconductors deliver higher voltages, operating temperatures and frequencies compared to traditional Silicon (Si) devices. These semiconductor devices are enabling for many applications in the aerospace and defense sector through reduced power consumption and smaller packaging of critical systems. On the commercial side, high voltage wide bandgap semiconductors are expected to play an important role in emerging critical technologies like artificial intelligence, quantum computing, autonomous vehicles and a more resilient power grid.
President and CEO Russell Low commented, “We are proud to collaborate with GE Aerospace in this endeavor, which has the potential to accelerate superjunction technology adoption. Axcelis is committed to providing equipment and process expertise that enables our customers’ superjunction device roadmaps.”
Axcelis’ Purion XEmax provides maximum flexibility in energy ranges to optimize the profile in depth and concentration, enables a more cost-effective approach by reducing the number of application steps, and excels in channeling over 7µm of aluminum implanted depth.
GE Aerospace, through its Research Center in Niskayuna, NY, has built up a world-leading IP portfolio in SiC technologies over more than three decades and sells SiC- based electric power products today through its Electrical Power business to support the avionics and electrical systems aboard commercial aircraft and ground vehicles. More recently, GE Aerospace researchers have been focusing SiC developments to enable future flight operations in more extreme operating environments such as with hypersonic vehicles and space travel, and to support developments with electric propulsion.
Dr. Ljubisa Stevanovic, chief engineer at GE Aerospace Research, stated: “High voltage SiC power devices are an important enabler for a wide array of critical emerging applications and future endeavors, including hypersonic travel, electric propulsion, and space exploration. We are excited to partner with Axcelis on this project, due to their expertise in ion implantation for Silicon Carbide power devices, and their market leading portfolio of Purion high energy ion implanters.”
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced financial results for the second quarter ended June 30, 2025.
President and CEO Russell Low commented, “Axcelis delivered strong results in the second quarter despite the cyclical digestion period in many of our markets, demonstrating the value we provide our customers and the strength of our team. We are deepening customer engagement, expanding our footprint in high-value applications, and seeing continued momentum in our CS&I business supported by our growing installed base. As we look ahead, we remain focused on innovation, customer collaboration, and disciplined execution to deliver on our strategic initiatives and position Axcelis to drive long term growth and profitability.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We generated strong profitability and cash flow in the second quarter, reflecting disciplined cost control and favorable mix. We increased our share repurchase activity to $45 million during the quarter, reflecting our confidence in the attractive long-term fundamentals of our business. Our strong balance sheet enables us to continue repurchasing shares in a disciplined and opportunistic manner, while also investing in our business.”
Q2 Highlights:
- Revenue of $194.5 million
- GAAP Gross Margin of 44.9%, and Non-GAAP Gross Margin of 45.2%
- GAAP Operating Margin of 14.9% and Non-GAAP Operating Margin of 17.7%
- GAAP Diluted earnings per share of $0.98, and Non-GAAP Diluted earnings per share of $1.13
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