Veeco Forecasts Fourth-Quarter Sales Of $230 Million To $260 Million, And Its CEO Eyes $1 Billion In 2027
Third-quarter revenue reached $209.4 million as AI-driven demand lifted compound semiconductor sales, while China revenue roughly halved.
Veeco Instruments, which makes semiconductor process equipment, reported third-quarter revenue of $209.4 million, up from $165.9 million a year earlier, and guided fourth-quarter sales to $230 million to $260 million. CEO Bill Miller said AI infrastructure spending has the company positioned to exceed $1 billion in revenue for full-year 2027, according to an 8-K filed Wednesday.
Earnings flat, sales up
Net income under standard accounting rose to $13.6 million, or $0.21 per diluted share, from $10.6 million, or $0.17, a year earlier. Adjusted earnings held at $0.36 per diluted share in both periods, with adjusted net income at $24.1 million against $21.8 million.
Third-quarter revenue also landed within the company's own August guidance of $200 million to $220 million, and above the $193.5 million of the second quarter, per the earnings presentation. Gross margin on an adjusted basis was 39.1%, below the 41% to 42% it had guided.
For the fourth quarter, Veeco expects adjusted earnings of $0.50 to $0.70 per share. For 2026 it revised its revenue outlook to $790 million to $820 million, with adjusted earnings of $1.32 to $1.52 per share.
Photonics up, China cut in half
Compound semiconductor sales reached $40 million, against $11 million a year earlier and $21 million in the second quarter. Semiconductor, the largest market, was $135 million, up from $118 million a year ago.
China revenue fell to $25 million from $46 million a year earlier, and made up 12% of the quarter's sales. The United States rose to $65 million from $27 million, and Asia-Pacific to $95 million from $82 million.
Veeco's presentation pegs the cumulative market for its indium phosphide laser tools, driven by AI infrastructure, at at least $2 billion over the next several years.
The $1 billion pitch
"AI infrastructure investment is accelerating technology transitions across leading-edge logic and memory, advanced packaging, and high-speed optical connectivity," Miller said. He cited "greater visibility and strategic investments to expand our manufacturing capacity" as the basis for the 2027 target.
Veeco sells laser annealing, ion beam, chemical vapor deposition and wet processing tools to chipmakers, foundries, hard drive and photonics makers. Its backlog was $554.9 million at the end of 2025, per its annual report.
Cash and short-term investments stood at $483 million on September 30, up from $429 million at the end of the second quarter. Long-term debt was $227 million. The company holds a pending merger agreement with Axcelis, and lists regulatory approval in China among the conditions that could delay it.
Veeco's results call began at 5:00 p.m. ET Wednesday; the fourth-quarter report will show whether sales reach the $230 million to $260 million range.
Sources
- 8-K Filing — VEECO INSTRUMENTS INC (VECO) — SEC EDGAR
- Exhibit veco-ex99d1.htm — VEECO INSTRUMENTS INC 8-K exhibit — SEC EDGAR
- Exhibit veco-ex99d2.htm — VEECO INSTRUMENTS INC 8-K exhibit — SEC EDGAR
- Veeco: Q3 Earnings Snapshot — Associated Press
- Veeco Reports Third Quarter 2026 Financial Results — globenewswire.com
