Veeco Instruments (NASDAQ:VECO) Announces Quarterly Earnings Results

Veeco Instruments (NASDAQ:VECO) released its earnings results on Wednesday. The semiconductor company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.07, FiscalAI reports. The business had revenue of $193.48 million for the quarter, compared to the consensus estimate of $180.08 million. Veeco Instruments had a return on equity of 3.49% and a net margin of 3.53%.The business’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.20 earnings per share. Veeco Instruments updated its FY 2026 guidance to 1.360-1.610 EPS and its Q3 2026 guidance to 0.350-0.490 EPS.

Here are the key takeaways from Veeco Instruments’ conference call:

• Q2 results exceeded expectations: Revenue reached $193 million, with non-GAAP operating income of $23 million and diluted EPS of $0.33. Management raised full-year 2026 revenue guidance to $780–$810 million.
• Order momentum strengthened substantially, including $200 million of Advanced Packaging orders that are primarily expected to ship in 2027. Management said visibility into 2027—and in some cases beyond—has improved significantly.
• AI-related demand is driving growth across Advanced Packaging, Silicon Photonics, laser annealing, memory, EUV, and data storage. Veeco expects semiconductor revenue to grow more than 10% in 2026, compound semiconductor revenue to approximately double, and data storage revenue to double year over year.
• Growth investments are pressuring near-term profitability: Veeco plans to more than double Advanced Packaging and Silicon Photonics capacity in 2027, adding about $10 million in 2026 operating expenses and reducing full-year gross margin by roughly 75 basis points. Full-year non-GAAP EPS guidance is now $1.36–$1.61 despite the higher revenue outlook.
• The proposed Axcelis merger continues to progress, with shareholder approvals and most regulatory clearances secured; China antitrust approval remains outstanding, and closing is still targeted for the second half of 2026.

Veeco Instruments Trading Down 2.5%

VECO stock traded down $1.35 during trading on Thursday, reaching $51.61. 1,578,978 shares of the stock were exchanged, compared to its average volume of 1,254,096. Veeco Instruments has a 1 year low of $20.86 and a 1 year high of $86.63. The firm has a market capitalization of $3.15 billion, a price-to-earnings ratio of 135.82 and a beta of 1.38. The business has a 50 day moving average price of $61.38 and a 200-day moving average price of $47.11. The company has a current ratio of 4.23, a quick ratio of 2.86 and a debt-to-equity ratio of 0.26.

Insider Transactions at Veeco Instruments

In other news, SVP Susan Wilkerson sold 15,506 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $69.56, for a total value of $1,078,597.36. Following the transaction, the senior vice president directly owned 27,468 shares in the company, valued at approximately $1,910,674.08. This represents a 36.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Adrian Devasahayam sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $65.00, for a total value of $650,000.00. Following the completion of the sale, the senior vice president directly owned 85,115 shares in the company, valued at approximately $5,532,475. The trade was a 10.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 239,055 shares of company stock worth $14,750,270 in the last 90 days. Insiders own 2.70% of the company’s stock.

Institutional Trading of Veeco Instruments

Institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. boosted its stake in shares of Veeco Instruments by 10.6% in the fourth quarter. Invesco Ltd. now owns 286,362 shares of the semiconductor company’s stock valued at $8,184,000 after purchasing an additional 27,432 shares during the period. Mercer Global Advisors Inc. ADV raised its stake in shares of Veeco Instruments by 4.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,986 shares of the semiconductor company’s stock valued at $314,000 after acquiring an additional 462 shares in the last quarter. Caitlin John LLC purchased a new position in Veeco Instruments in the fourth quarter valued at $269,000. XTX Topco Ltd acquired a new position in Veeco Instruments during the 4th quarter worth $695,000. Finally, Old West Investment Management LLC grew its stake in Veeco Instruments by 5.6% during the 4th quarter. Old West Investment Management LLC now owns 71,428 shares of the semiconductor company’s stock worth $2,041,000 after purchasing an additional 3,796 shares in the last quarter. 98.46% of the stock is currently owned by hedge funds and other institutional investors.

Veeco Instruments News Summary

Here are the key news stories impacting Veeco Instruments this week:

• Positive Sentiment: Veeco reported second-quarter revenue of $193.5 million, up 16.5% year over year and above the $180.1 million consensus estimate. Non-GAAP EPS was $0.33, beating expectations of $0.26 and supported by strong orders, customer engagement and AI-driven demand. VECO Q2 Earnings Beat Estimates on Strong AI-Driven Demand
• Positive Sentiment: Management highlighted approximately $200 million in advanced-packaging orders and ongoing capacity investments that could support a larger AI-related growth ramp in 2027. VECO Q2 Earnings Call Ties 2027 Growth to Capacity Spending
• Positive Sentiment: Veeco announced a LUMINA®+ MOCVD system order for manufacturing indium-phosphide lasers used in optical transceivers, potentially benefiting from hyperscaler spending on AI data-center connectivity. Veeco Announces LUMINA MOCVD System Order
• Neutral Sentiment: Full-year 2026 revenue guidance of $780 million to $810 million is above the $770.7 million analyst consensus, while EPS guidance of $1.36 to $1.61 brackets the $1.52 consensus estimate.
• Negative Sentiment: Third-quarter EPS guidance of $0.35 to $0.49 is below the $0.51 consensus at the midpoint, although revenue guidance of $200 million to $220 million is broadly in line with expectations. Near-term margin pressure and investment ahead of the anticipated 2027 capacity ramp are weighing on the stock despite the quarterly beat.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Citigroup increased their target price on shares of Veeco Instruments from $40.00 to $60.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Weiss Ratings raised shares of Veeco Instruments from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday, June 30th. Zacks Research downgraded shares of Veeco Instruments from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Wall Street Zen raised shares of Veeco Instruments to a “hold” rating in a research note on Saturday, June 6th. Finally, Barclays boosted their target price on Veeco Instruments from $30.00 to $55.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 19th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Veeco Instruments currently has a consensus rating of “Hold” and an average target price of $40.60.

Veeco Instruments Company Profile

Veeco Instruments Inc (NASDAQ: VECO) is a leading supplier of process equipment for the semiconductor, data storage, wireless communications, power electronics and advanced packaging industries. The company designs, manufactures and services precision tools used to grow, deposit and etch thin films on substrates, enabling the fabrication of chips, light-emitting diodes (LEDs), micro-electromechanical systems (MEMS) and high-density storage devices. Veeco’s platforms are deployed across fabrication facilities worldwide, where they support key processes in materials science and device manufacturing.

Veeco’s product portfolio spans molecular beam epitaxy (MBE), metal organic chemical vapor deposition (MOCVD), atomic layer deposition (ALD), ion beam etch and deposition, and high-precision wet and dry etch systems.