Axcelis Announces Financial Results for Third Quarter 2026

Nine-month revenue increased, but net income and operating cash flow remained below their year-earlier levels.

Rhea-AI Summary

Axcelis Technologies (Nasdaq: ACLS) reported third-quarter 2026 revenue of $237.8 million, with earnings rising from the same quarter a year earlier. GAAP net income reached $37.759 million, versus $25.986 million, and diluted earnings per share rose to $1.21 from $0.83. Gross margin declined to 41.0% from 41.6%, while operating margin eased to 11.5% from 11.7%.

Revenue compared with $213.611 million a year earlier. Operating cash flow fell to $40.221 million from $45.350 million. Axcelis cited increased bookings, sequential systems revenue growth and record quarterly CS&I revenue, while foreign exchange weighed on gross margin. For the fourth quarter ending December 31, 2026, the company expects approximately $275 million in revenue, GAAP diluted EPS of approximately $1.15 and non-GAAP EPS of approximately $1.50.

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Positive

• Moderate pointThird-quarter revenue rose to $237.781 million from $213.611 million a year earlier.
• Moderate pointThird-quarter GAAP net income increased to $37.759 million from $25.986 million year over year.
• Moderate pointAxcelis reported increased bookings, sequential systems revenue growth and record quarterly CS&I revenue.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue guidance is approximately $275 million for the quarter ending December 31, 2026.
• Minor pointThird-quarter GAAP diluted EPS rose to $1.21 from $0.83 a year earlier.

10 minor points

• Minor pointThird-quarter operating income increased to $27.343 million from $25.020 million a year earlier.
• Minor pointThird-quarter adjusted EBITDA increased to $44.047 million from $43.202 million a year earlier.
• Minor pointThird-quarter non-GAAP net income rose to $39.215 million from $37.900 million year over year.
• Minor pointThird-quarter non-GAAP diluted EPS increased to $1.26 from $1.21 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter EPS guidance is approximately $1.15 GAAP and approximately $1.50 non-GAAP.
• Minor point. Forward-looking: it has not happened yet and may not happen.Axcelis anticipates further growth in 2027.
• Minor pointNine-month revenue rose to $651.912 million from $600.718 million a year earlier.
• Minor pointCash and equivalents increased to $190.769 million at September 30, 2026, from $145.451 million at year-end 2025.
• Minor pointShort-term investments increased to $281.588 million at September 30, 2026, from $228.802 million at year-end 2025.
• Minor pointThird-quarter income taxes were a $1.751 million benefit, versus a $4.164 million provision a year earlier.

Negative

• Moderate pointNine-month operating cash flow fell to $76.733 million from $124.872 million a year earlier.
• Moderate pointNine-month GAAP net income declined to $70.264 million from $85.941 million a year earlier.
• Moderate pointNine-month operating expenses increased to $213.620 million from $181.773 million a year earlier.
• Minor pointThird-quarter GAAP gross margin declined to 41.0% from 41.6% a year earlier.
• Minor pointThird-quarter GAAP operating margin declined to 11.5% from 11.7% a year earlier.

8 minor points

• Minor pointThird-quarter non-GAAP gross margin declined to 41.2% from 41.8% a year earlier.
• Minor pointThird-quarter non-GAAP operating margin declined to 16.6% from 18.2% a year earlier.
• Minor pointAxcelis identified foreign exchange headwinds as weighing on third-quarter gross margin.
• Minor pointThird-quarter operating cash flow fell to $40.221 million from $45.350 million a year earlier.
• Minor pointNine-month GAAP diluted EPS fell to $2.26 from $2.70 a year earlier.
• Minor pointNine-month operating income declined to $55.575 million from $83.143 million a year earlier.
• Minor pointThird-quarter operating expenses increased to $70.081 million from $63.786 million a year earlier.
• Minor pointThird-quarter interest expense increased to $1.960 million from $1.305 million a year earlier.

News Explained

Axcelis reported 30,884 thousand shares issued and outstanding at September 30, 2026, versus 30,717 thousand at December 31, 2025; that higher share count reduces existing holders’ percentage ownership absent offsetting changes.

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Q3 2026 Highlights:

• Revenue of $237.8 million
• GAAP Gross Margin of 41.0%, and Non-GAAP Gross Margin of 41.2%
• GAAP Operating Margin of 11.5% and Non-GAAP Operating Margin of 16.6%
• GAAP Diluted Earnings Per Share of $1.21, and Non-GAAP Diluted Earnings Per Share of $1.26

BEVERLY, Mass., Nov. 5, 2026 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2026.

President and CEO Russell Low commented, "We are pleased with our third quarter performance, as improving demand drove sequential growth in systems revenue, complemented by another quarterly record in CS&I. We are particularly encouraged by the strong increase in bookings, reflecting a broadening recovery across our end markets, with continued momentum in Memory and increasing activity in Power and General Mature. At the same time, we continue to see sustained strength in our CS&I business."

Low added, "Our strategy of investing in next-generation technologies is beginning to yield tangible results and positions us well to capitalize on expanding market opportunities as customer investment recovers. We expect to finish 2026 with positive momentum and anticipate further growth in 2027."

Senior Vice President and Interim CFO David Ryzhik stated, "Our third quarter results exceeded our expectations, supported by stronger shipments and record CS&I revenue, despite the impact from foreign exchange headwinds on our gross margin. We continue to generate healthy cash flow and maintain a strong balance sheet, providing us with ample financial flexibility. The combination of improving demand, a growing installed base and continued strength in CS&I provides a solid foundation as we enter 2027."

Results Summary (In thousands, except per share amounts and percentages)
			Three months ended September 30,
		2026				2025
Revenue	$	237,781			$	213,611
Gross margin		41.0 %				41.6 %
Operating margin		11.5 %				11.7 %
Net income	$	37,759			$	25,986
Diluted earnings per share	$	1.21			$	0.83

 

Non-GAAP Results			Three months ended September 30,
		2026				2025
Non-GAAP gross margin		41.2 %				41.8 %
Non-GAAP operating margin		16.6 %				18.2 %
Adjusted EBITDA	$	44,047			$	43,202
Non-GAAP net income	$	39,215			$	37,900
Non-GAAP diluted earnings per share	$	1.26			$	1.21

Business Outlook
For the fourth quarter ending December 31, 2026, Axcelis expects revenues of approximately $275 million, GAAP earnings per diluted share of approximately $1.15, and non-GAAP earnings per share of approximately $1.50.

Please refer to Fourth 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.

Third Quarter 2026 Conference Call
The Company will host a call to discuss the results for the third quarter 2026 today at 8:30 a.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/BI02437563728a4138be5d107cd344f382 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 other income, 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						Nine months ended
			September 30,					September 30,
		2026			2025			2026			2025
Revenue			237,781			213,611			651,912			600,718
Cost of revenue			140,357			124,805			382,717			335,802
Gross profit			97,424			88,806			269,195			264,916
Operating expenses:
Research and development			30,177			24,640			87,670			78,832
Sales and marketing			16,834			15,838			53,742			45,965
General and administrative			23,070			23,308			72,208			56,976
Total operating expenses			70,081			63,786			213,620			181,773
Income from operations			27,343			25,020			55,575			83,143
Other income (expense):
Interest income			7,422			5,465			16,459			16,547
Interest expense			(1,960)			(1,305)			(4,514)			(4,028)
Other, net			3,203			970			4,461			2,569
Total other income			8,665			5,130			16,406			15,088
Income before income taxes			36,008			30,150			71,981			98,231
Income tax (benefit) provision			(1,751)			4,164			1,717			12,290
Net income		$	37,759		$	25,986		$	70,264		$	85,941
Net income per share:
Basic		$	1.22		$	0.83		$	2.28		$	2.70
Diluted		$	1.21		$	0.83		$	2.26		$	2.70
Shares used in computing net income per share:
Basic weighted average shares of common stock			30,882			31,287			30,804			31,796
Diluted weighted average shares of common stock			31,105			31,450			31,089			31,863

Beginning in the third quarter of 2026, Axcelis will no longer separately present revenue and cost of revenue attributable to Services, which represents a small percentage of Axcelis' overall business.

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		September 30,			December 31,
		2026			2025
ASSETS
Current assets:
Cash and cash equivalents		$	190,769		$	145,451
Short-term investments			281,588			228,802
Accounts receivable, net			154,713			168,479
Inventories, net			376,341			329,010
Prepaid income taxes			7,604			4,658
Prepaid expenses and other current assets			88,935			66,802
Total current assets			1,099,950			943,202
Property, plant and equipment, net			59,468			56,146
Operating lease assets			27,993			28,927
Finance lease assets, net			13,198			14,154
Long-term restricted cash			10,638			10,627
Deferred income taxes			79,268			79,895
Long-term investments			142,982			182,396
Other assets			44,015			46,004
Total assets		$	1,477,512		$	1,361,351
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	78,632		$	42,309
Accrued compensation			28,103			34,233
Warranty			10,615			9,516
Income taxes			5,873			11,383
Deferred revenue			95,620			65,494
Current portion of finance lease obligation			1,799			1,575
Other current liabilities			27,755			33,150
Total current liabilities			248,397			197,660
Long-term finance lease obligation			39,367			40,754
Long-term deferred revenue			42,424			43,445
Other long-term liabilities			34,090			44,815
Total liabilities			364,278			326,674
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 30,884 shares issued and outstanding at September 30, 2026; 30,717 shares issued and outstanding at December 31, 2025			31			31
Additional paid-in capital			542,467			533,309
Retained earnings			573,803			503,539
Accumulated other comprehensive loss			(3,067)			(2,202)
Total stockholders' equity			1,113,234			1,034,677
Total liabilities and stockholders' equity		$	1,477,512		$	1,361,351

 

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Three months ended														Nine months ended
		September 30,														September 30,
		2026						2025								2026								2025
Cash flows from operating activities
Net income		$		37,759				$		25,986				$			70,264							$	85,941
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				4,489						4,328							13,364								13,152
Stock-based compensation expense				6,467						5,344							17,791								15,668
Other				(11,324)						6,907							(8,165)								(4,110)
Change in other assets and liabilities, net				2,830						2,785							(16,521)								14,221
Net cash provided by operating activities				40,221						45,350							76,733								124,872
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software				(2,504)						(2,015)							(7,897)								(8,960)
Other changes in investing activities, net				(3,644)						3,393							(14,987)								46,194
Net cash (used in) provided by investing activities				(6,148)						1,378							(22,884)								37,234
Cash flows from financing activities
Repurchase of common stock				—						(32,335)							—								(95,850)
Other changes from financing activities, net				(558)						(440)							(9,806)								(4,022)
Net cash used in financing activities				(558)						(32,775)							(9,806)								(99,872)
Effect of exchange rate changes on cash and cash equivalents				2,263						(106)							1,286								1,829
Net increase in cash, cash equivalents and restricted cash				35,778						13,847							45,329								64,063
Cash, cash equivalents and restricted cash at beginning of period				165,629						181,280							156,078								131,064
Cash, cash equivalents and restricted cash at end of period		$		201,407				$		195,127				$			201,407							$	195,127

 

Axcelis Technologies, Inc.  Schedule Reconciling Selected Non-GAAP Financial Measures (In thousands, except per share amounts)
			Three months ended September 30,											Nine months ended September 30,
		2026					2025					2026								2025
GAAP gross Profit	$	97,424			$		88,806			$		269,195							$	264,916
Restructuring1		—					—					—								226
Stock-based compensation		605					499					1,802								1,421
Non-GAAP gross profit	$	98,029			$		89,305			$		270,997							$	266,563
Non-GAAP gross margin		41.2 %					41.8 %					41.6 %								44.4 %
GAAP operating expense	$	70,081			$		63,786			$		213,620							$	181,773
Transaction and integration2		(4,967)					(8,274)					(20,192)								(8,274)
Bad debt expense		—					—					(65)								—
Restructuring1		—					(236)					—								(1,130)
Other3		(781)					—					(781)								—
Stock-based compensation		(5,862)					(4,845)					(15,989)								(14,247)
Non-GAAP operating expense	$	58,471			$		50,431			$		176,593							$	158,122
GAAP operating income	$	27,343			$		25,020			$		55,575							$	83,143
Transaction and integration2		4,967					8,274					20,192								8,274
Bad debt expense		—					—					65								—
Restructuring1		—					236					—								1,356
Other3		781					—					781								—
Stock-based compensation		6,467					5,344					17,791								15,668
Non-GAAP operating income	$	39,558			$		38,874			$		94,404							$	108,441
Non-GAAP operating margin		16.6 %					18.2 %					14.5 %								18.1 %
GAAP other income (expense)	$	8,665			$		5,130			$		16,406							$	15,088
Discrete tax related items4		(1,726)					—					(1,726)								—
Non-GAAP other income	$	6,939			$		5,130			$		14,680							$	15,088
GAAP income tax (benefit) provision	$	(1,751)			$		4,164			$		1,717							$	12,290
Discrete tax related items4		7,565					—					7,565								—
Income tax effect of non-GAAP adjustments5		1,468					1,940					5,194								3,542
Non-GAAP income tax provision	$	7,282			$		6,104			$		14,476							$	15,832
GAAP net income	$	37,759			$		25,986			$		70,264							$	85,941
Transaction and integration2		4,967					8,274					20,192								8,274
Bad debt expense		—					—					65								—
Restructuring1		—					236					—								1,356
Other3		781					—					781								—
Discrete tax related items4		(9,291)					—					(9,291)								—
Stock-based compensation		6,467					5,344					17,791								15,668
Income tax effect of non-GAAP adjustments5		(1,468)					(1,940)					(5,194)								(3,542)
Non-GAAP net income	$	39,215			$		37,900			$		94,608							$	107,697
GAAP diluted EPS	$	1.21			$		0.83			$		2.26							$	2.70
Transaction and integration2		0.16					0.26					0.65								0.26
Bad debt expense		—					—					—								—
Restructuring1		—					0.01					—								0.04
Other3		0.03					—					0.03								—
Discrete tax related items4		(0.30)					—					(0.30)								—
Stock-based compensation		0.21					0.17					0.57								0.49
Income tax effect of non-GAAP adjustments5		(0.05)					(0.06)					(0.17)								(0.11)
Non-GAAP diluted EPS	$	1.26			$		1.21			$		3.04							$	3.38

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, announced on October 1, 2025.
Note 3.	Other costs include miscellaneous tax related items.
Note 4.	Discrete items related to tax audits, including changes in uncertain tax positions and associated interest and penalties.
Note 5.	Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.
Figures may not sum due to rounding.

 

		Axcelis Technologies, Inc. Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages)
					Three months ended September 30,									Nine months ended September 30,
				2026				2025				2026					2025
Net Income			$	37,759			$	25,986		$		70,264				$	85,941
Other (income) expense				(8,665)				(5,130)				(16,406)					(15,088)
Income tax (benefit) provision				(1,751)				4,164				1,717					12,290
Depreciation & amortization				4,489				4,328				13,364					13,152
Subtotal				31,832				29,348				68,939					96,295
Transaction and integration1				4,967				8,274				20,192					8,274
Bad debt expense				—				—				65					—
Restructuring2				—				236				—					1,356
Other3				781				—				781					—
Stock-based compensation				6,467				5,344				17,791					15,668
Adjusted EBITDA			$	44,047			$	43,202		$		107,768				$	121,593
Adjusted EBITDA margin				18.5 %				20.2 %				16.5 %					20.2 %

Note 1:	Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.
Note 2:	Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.
Note 3.	Other costs include miscellaneous tax related items.

 

Axcelis Technologies, Inc. Fourth Quarter 2026 Outlook GAAP to Non-GAAP Diluted Earnings Per Share
	Three months ended December 31, 2026
GAAP diluted EPS	$	1.15
Transaction and Integration1		0.19
Stock-based compensation		0.22
Income tax effect of non-GAAP adjustments2	(0.06)
Non-GAAP diluted EPS	$	1.50

Note 1:	Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.
Note 2:	Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

 

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SOURCE Axcelis Technologies, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Axcelis ACLS third-quarter 2026 revenue and earnings?

Axcelis reported revenue of $237.781 million and GAAP diluted EPS of $1.21 for the quarter ended September 30, 2026. A year earlier, revenue was $213.611 million and GAAP diluted EPS was $0.83. GAAP net income increased to $37.759 million from $25.986 million.

What is Axcelis ACLS guidance for the fourth quarter of 2026?

Axcelis expects revenue of approximately $275 million, GAAP diluted EPS of approximately $1.15 and non-GAAP EPS of approximately $1.50 for the fourth quarter ending December 31, 2026.