Axcelis Announces Financial Results for First Quarter 2026

Rhea-AI Summary

Axcelis (Nasdaq: ACLS) reported Q1 2026 results: revenue $199.0M, GAAP gross margin 40.5%, GAAP operating margin 4.0%, GAAP EPS $0.30 and non-GAAP EPS $0.72. The company ended the quarter with about $570M cash and reiterated 2026 revenue is expected to be relatively flat vs 2025. Axcelis expects the Veeco merger to close in the second half of 2026.

AI-generated analysis. Not financial advice.

Positive

• Cash balance of approximately $570 million at quarter end
• Q1 revenue of $198.96 million provides continued topline support
• Company expects Q2 2026 revenue of approximately $205 million

Negative

• GAAP diluted EPS declined to $0.30 from $0.88 in Q1 2025
• GAAP operating margin narrowed to 4.0% from 15.1% year‑ago
• Non‑GAAP diluted EPS fell to $0.72 from $1.06 in Q1 2025

Key Figures

Q1 2026 revenue: $198.956M Q1 2025 revenue: $192.563M Q1 2026 GAAP EPS: $0.30 +5 more

8 metrics

Q1 2026 revenue $198.956M Three months ended March 31, 2026

Q1 2025 revenue $192.563M Three months ended March 31, 2025

Q1 2026 GAAP EPS $0.30 Diluted earnings per share, Q1 2026

Q1 2026 non-GAAP EPS $0.72 Non-GAAP diluted EPS, Q1 2026

Q2 2026 revenue outlook $205M Guidance for quarter ending June 30, 2026

Q2 2026 GAAP EPS outlook $0.57 GAAP EPS guidance for Q2 2026

Q2 2026 non-GAAP EPS outlook $0.90 Non-GAAP EPS guidance for Q2 2026

Cash balance $570M Cash at end of Q1 2026

Market Reality Check

Price: $163.03 Vol: Volume 1,879,551 is about...

high vol

$163.03 Last Close

Volume Volume 1,879,551 is about 2.4x the 20-day average of 783,804, signaling elevated interest ahead of the earnings release. high

Technical Price at 171 is trading well above the 200-day MA of 90.03, reflecting a strong pre-news uptrend.

Peers on Argus

ACLS rose 22.41% on heavy volume while key peers were mixed: FORM +1.78%, IPGP +...

2 Up 1 Down

ACLS rose 22.41% on heavy volume while key peers were mixed: FORM +1.78%, IPGP +9.82%, CAMT -0.41%, KLIC -0.20%, AMBA -0.80%. Momentum scan shows VECO -1.25%, AMBA +0.44%, ACMR +0.20%, reinforcing a stock-specific move.

Previous Earnings Reports

5 past events · Latest: Feb 17 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 17	Q4/FY25 earnings	Positive	-16.7%	Reported Q4 2025 beats and strong cash returns alongside Q1 2026 outlook.
Nov 04	Q3 2025 earnings	Positive	-2.7%	Q3 2025 revenue, high margins, strong cash and Q4 guidance issued.
Aug 05	Q2 2025 earnings	Positive	+10.1%	Resilient Q2 2025 results with strong margins and buybacks despite challenges.
May 06	Q1 2025 earnings	Negative	+5.0%	Q1 2025 revenue and EPS declined year-on-year with cautious Q2 outlook.
Feb 10	Q4/FY24 earnings	Negative	-12.3%	Q4 2024 and FY 2024 revenue down vs 2023 amid digestion commentary.

Pattern Detected

Earnings headlines have often seen downside reactions, especially when guidance or macro commentary was cautious, with 3 of the last 5 earnings events selling off initially.

Recent Company History

Over the last five earnings cycles, Axcelis has reported solid revenue and cash generation but often paired with cautious commentary on cyclical digestion. Q4 2024 and Q4 2025 showed revenue declines and digestion language, drawing negative price reactions. Some quarters, like Q2 2025, were rewarded with a 10.06% gain on resilient results. The current Q1 2026 report, with revenue around prior guidance and reiterated merger plans with Veeco, follows this pattern of detailed outlook and cash strength.

Historical Comparison

-3.3% avg move · Over the past five earnings releases, ACLS moved on average -3.33%. Today’s +22.41% reaction to Q1 2...

earnings

-3.3%

Average Historical Move earnings

Over the past five earnings releases, ACLS moved on average -3.33%. Today’s +22.41% reaction to Q1 2026 financials is a sharp upside outlier versus that history.

Recent earnings show revenue stabilizing below 2024 peaks while management repeatedly highlights cyclical digestion and the pending Veeco merger as key strategic elements.

Market Pulse Summary

This announcement details Q1 2026 revenue of $198.956M, GAAP EPS of $0.30, and non-GAAP EPS of $0.72...

Analysis

This announcement details Q1 2026 revenue of $198.956M, GAAP EPS of $0.30, and non-GAAP EPS of $0.72, alongside Q2 2026 guidance of roughly $205M revenue and non-GAAP EPS near $0.90. Management emphasizes a strong cash position of about $570M and continued free cash flow generation while reiterating expectations for relatively flat 2026 revenue and the planned Veeco merger in the second half of 2026. Investors may watch margins, Memory demand, and execution against this outlook.

Key Terms

non-gaap financial measures, adjusted ebitda, free cash flow

3 terms

non-gaap financial measures financial

"This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("non-GAAP financial measures")."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

adjusted ebitda financial

"Adjusted EBITDA | $27,748 | | $40,001"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"and continued to generate attractive free cash flow, providing ample flexibility"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

AI-generated analysis. Not financial advice.

Q1 2026 Highlights:

• Revenue of $199.0 million
• GAAP Gross Margin of 40.5%, and Non-GAAP Gross Margin of 40.7%
• GAAP Operating Margin of 4.0% and Non-GAAP Operating Margin of 11.7%
• GAAP Diluted Earnings Per Share of $0.30, and Non-GAAP Diluted Earnings Per Share of $0.72 

BEVERLY, Mass., May 7, 2026 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2026.

President and CEO Russell Low commented, "We executed well in the first quarter, delivering results slightly above expectations, reflecting the strength of our CS&I business and meaningful acceleration in Memory. Demand in DRAM and HBM was again a clear highlight, with strong sequential growth building on our momentum exiting 2025. CS&I remains an area of focus for Axcelis and is becoming an increasingly important strategic driver of our business across cycles, particularly as our installed base expands."

Low added, "We continue to anticipate 2026 revenue will be relatively flat compared to 2025, as growth in Memory is offset by a continued digestion of capacity in our Power and General Mature markets. That said, we are encouraged by our bookings activity in the first quarter and the robust customer engagement we are having across a wide array of opportunities, which positions Axcelis for increased momentum exiting 2026 and into 2027. We look forward to completing our merger with Veeco, which we expect to close in the second half of 2026." 

Senior Vice President and Interim CFO David Ryzhik stated, "We ended the first quarter with a strong balance sheet, including approximately $570 million of cash, and continued to generate attractive free cash flow, providing ample flexibility to fund our growth objectives and maintain a value‑creative capital allocation strategy. As we look to the balance of the year, we are well positioned to execute, supported by firming order trends, an anticipated increase in revenue in the second half, and continued investments in innovation to capture attractive opportunities ahead." 

Results Summary (In thousands, except per share amounts and percentages)
	Three months ended March 31,
		2026			2025
Revenue	$	198,956		$	192,563
Gross margin		40.5 %			46.1 %
Operating margin		4.0 %			15.1 %
Net income	$	9,214		$	28,579
Diluted earnings per share	$	0.30		$	0.88
Non-GAAP Results
Non-GAAP gross margin		40.7 %			46.4 %
Non-GAAP operating margin		11.7 %			18.5 %
Adjusted EBITDA	$	27,748		$	40,001
Non-GAAP net income	$	22,425		$	34,197
Non-GAAP diluted earnings per share	$	0.72		$	1.06

Business Outlook
For the second quarter ending June 30, 2026, Axcelis expects revenues of approximately $205 million, GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.90.

Please refer to Second Quarter 2026 Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

First Quarter 2026 Conference Call
The Company will host a call to discuss the results for the first quarter 2026 today at 5:00 p.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:
https://register-conf.media-server.com/register/BIabf144ee757c4fccaceea99cf3cea2c9
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results
This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement
This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis
Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President and Interim CFO
Telephone: (978) 787-2352
Email: David.Ryzhik@axcelis.com

Press/Media Relations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
	Three months ended March 31,
	2026				2025
Revenue:
Product	$	188,008		$	182,824
Services		10,948			9,739
Total revenue		198,956			192,563
Cost of revenue:
Product		105,735			94,500
Services		12,640			9,295
Total cost of revenue		118,375			103,795
Gross profit		80,581			88,768
Operating expenses:
Research and development		28,516			27,128
Sales and marketing		17,354			15,124
General and administrative		26,761			17,357
Total operating expenses		72,631			59,609
Income from operations		7,950			29,159
Other income (expense):
Interest income		4,462			5,601
Interest expense		(1,292)			(1,367)
Other, net		(495)			(309)
Total other income		2,675			3,925
Income before income taxes		10,625			33,084
Income tax provision		1,411			4,505
Net income	$	9,214		$	28,579
Net income per share:
Basic	$	0.30		$	0.89
Diluted	$	0.30		$	0.88
Shares used in computing net income per share:
Basic weighted average shares of common stock		30,723			32,258
Diluted weighted average shares of common stock		30,980			32,335

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		March 31,			December 31,
		2026			2025
ASSETS
Current assets:
Cash and cash equivalents		$	150,829		$	145,451
Short-term investments			215,771			228,802
Accounts receivable, net			161,814			168,479
Inventories, net			326,052			329,010
Prepaid income taxes			4,609			4,658
Prepaid expenses and other current assets			76,607			66,802
Total current assets			935,682			943,202
Property, plant and equipment, net			57,729			56,146
Operating lease assets			27,943			28,927
Finance lease assets, net			13,835			14,154
Long-term restricted cash			10,628			10,627
Deferred income taxes			80,514			79,895
Long-term investments			203,339			182,396
Other assets			44,874			46,004
Total assets		$	1,374,544		$	1,361,351
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	51,558		$	42,309
Accrued compensation			16,663			34,233
Warranty			9,314			9,516
Income taxes			14,026			11,383
Deferred revenue			68,352			65,494
Current portion of finance lease obligation			1,648			1,575
Other current liabilities			42,353			33,150
Total current liabilities			203,914			197,660
Long-term finance lease obligation			40,310			40,754
Long-term deferred revenue			41,214			43,445
Other long-term liabilities			44,463			44,815
Total liabilities			329,901			326,674
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 30,733 shares issued and outstanding at March 31, 2026; 30,717 shares issued and outstanding at December 31, 2025			31			31
Additional paid-in capital			537,185			533,309
Retained earnings			512,753			503,539
Accumulated other comprehensive loss			(5,326)			(2,202)
Total stockholders' equity			1,044,643			1,034,677
Total liabilities and stockholders' equity		$	1,374,544		$	1,361,351

 

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Three months ended March 31,
		2026			2025
Cash flows from operating activities
Net income	$	9,214		$	28,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,436			4,309
Stock-based compensation expense		4,899			4,903
Other		3,805			(1,682)
Change in operating assets and liabilities, net		(4,215)			3,686
Net cash provided by operating activities		18,139			39,795
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software		(1,839)			(4,960)
Other changes in investing activities, net		(8,800)			45,429
Net cash (used in) provided by investing activities		(10,639)			40,469
Cash flows from financing activities
Repurchase of common stock		—			(18,178)
Other changes from financing activities, net		(1,397)			(1,932)
Net cash used in financing activities		(1,397)			(20,110)
Effect of exchange rate changes on cash and cash equivalents		(724)			292
Net increase in cash, cash equivalents and restricted cash		5,379			60,446
Cash, cash equivalents and restricted cash at beginning of period		156,078			131,064
Cash, cash equivalents and restricted cash at end of period	$	161,457		$	191,510

Notes on Our Non-GAAP Financial Information

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company's operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors' ability to review the Company's business from the same perspective as the Company's management. 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Axcelis Technologies, Inc. Schedule Reconciling Selected Non-GAAP Financial Measures (In thousands, except per share amounts and percentages)
	Three months ended March 31,
		2026			2025
GAAP gross profit	$	80,581		$	88,768
Restructuring1		—			226
Stock-based compensation		442			353
Non-GAAP gross profit	$	81,023		$	89,347
Non-GAAP gross margin		40.7 %			46.4 %
Operating expenses	$	72,631		$	59,609
Transaction and integration3,4		(10,398)			(481)
Bad debt expense		(65)			—
Restructuring1		—			(923)
Stock-based compensation		(4,457)			(4,550)
Non-GAAP operating expenses	$	57,711		$	53,655
GAAP operating income	$	7,950		$	29,159
Transaction and integration3,4		10,398			481
Bad debt expense		65			—
Restructuring1		—			1,149
Stock-based compensation		4,899			4,903
Non-GAAP operating income	$	23,312		$	35,692
Non-GAAP operating margin		11.7 %			18.5 %
GAAP income tax provision	$	1,411		$	4,505
Income tax effect of non-GAAP adjustments2		2,151			915
Non-GAAP income tax provision	$	3,562		$	5,420
GAAP net income	$	9,214		$	28,579
Transaction and integration3,4		10,398			481
Bad debt expense		65			—
Restructuring1		—			1,149
Stock-based compensation		4,899			4,903
Income tax effect of non-GAAP adjustments2		(2,151)			(915)
Non-GAAP net income	$	22,425		$	34,197
GAAP diluted EPS	$	0.30		$	0.88
Transaction and integration3,4		0.34			0.01
Bad debt expense		—			—
Restructuring1		—			0.04
Stock-based compensation		0.16			0.15
Income tax effect of non-GAAP adjustments2		(0.07)			(0.03)
Non-GAAP diluted EPS	$	0.72		$	1.06

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Note 3: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments.

Note 4: First quarter 2025 transaction and integration costs includes $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported first quarter 2025 results, given that this occurred prior to the transaction announcement on October 1, 2025.

 

Axcelis Technologies, Inc. Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages)
	Three months ended March 31,
		2026			2025
Net income	$	9,214		$	28,579
Other (income)/expense		(2,675)			(3,925)
Income tax provision		1,411			4,505
Depreciation & amortization		4,436			4,309
Subtotal		12,386			33,468
Transaction and integration2,3		10,398			481
Bad debt expense		65			—
Restructuring1		—			1,149
Stock-based compensation		4,899			4,903
Adjusted EBITDA	$	27,748		$	40,001
Adjusted EBITDA margin		13.9 %			20.8 %

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments.

Note 3: First quarter 2025 transaction and integration costs includes $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported first quarter 2025 results, given that this occurred prior to the transaction announcement on October 1, 2025.

 

Axcelis Technologies, Inc. Second Quarter Outlook GAAP to Non-GAAP Diluted Earnings Per Share
	Three months ended June 30, 2026
GAAP diluted EPS	$	0.57
Transaction and integration1		0.18
Stock-based compensation		0.21
Income tax effect of non-GAAP adjustments2		(0.06)
Non-GAAP diluted EPS	$	0.90

Note 1:	Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments.
Note 2:	Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.
Figures may not sum due to rounding.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-first-quarter-2026-302766166.html

SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis (ACLS) Q1 2026 revenue and EPS results?

Axcelis reported $198.96 million in revenue and GAAP diluted EPS of $0.30. According to the company, non‑GAAP diluted EPS was $0.72, with GAAP operating margin at 4.0% and non‑GAAP operating margin at 11.7%.

How much cash did Axcelis (ACLS) report at the end of Q1 2026?

Axcelis reported approximately $570 million of cash on the balance sheet at quarter end. According to the company, this cash plus free cash flow provides flexibility for growth investments and capital allocation priorities.

What does Axcelis (ACLS) forecast for Q2 2026 revenue and EPS?

Axcelis expects Q2 2026 revenue of about $205 million, GAAP diluted EPS of about $0.57, and non‑GAAP diluted EPS of about $0.90. According to the company, those figures reflect current order trends and seasonality.

How did Axcelis (ACLS) margins change year over year in Q1 2026?

GAAP gross margin was 40.5% and GAAP operating margin was 4.0% in Q1 2026. According to the company, non‑GAAP gross margin was 40.7% and non‑GAAP operating margin was 11.7%.

What is the status of Axcelis (ACLS) merger with Veeco and timing?

Axcelis expects to complete its merger with Veeco in the second half of 2026. According to the company, the merger remains on track and is expected to close subject to customary conditions and approvals.