Axcelis Technologies Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 4 new. The quarter’s numbers.

Key takeaways

Revenue rose from a year earlier: Revenue was $198,956 thousand, against $192,563 thousand in the first quarter of 2025. The release headline gives revenue of $199.0 million. Source
DRAM and HBM demand highlighted: Management called demand in DRAM and HBM a clear highlight, with sequential growth building on momentum exiting 2025. Source
Operating income fell year over year: GAAP operating income was $7,950 thousand, against $29,159 thousand a year earlier. GAAP operating margin was 4.0%, against 15.1%. Source
Net income and EPS declined: Net income was $9,214 thousand, against $28,579 thousand. Diluted EPS was $0.30, against $0.88. Non-GAAP diluted EPS was $0.72, against $1.06. Source
CS&I flagged as strategic driver: Management said CS&I remains an area of focus and is becoming an increasingly important strategic driver across cycles, as the installed base expands. Source
Memory growth offset by digestion: Management said growth in Memory is offset by continued digestion of capacity in the Power and General Mature markets. Source
Gross and operating margins fell: Non-GAAP gross margin was 40.7%, against 46.4% a year earlier. Non-GAAP operating margin was 11.7%, against 18.5%. Source

“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.”
President and CEO Russell Low

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	second quarter 2026 (quarter ending June 30, 2026)	approximately $205 million	New
GAAP diluted EPS Source	second quarter 2026	approximately $0.57	New
Non-GAAP diluted EPS Source	second quarter 2026	approximately $0.90	New
Transaction and integration costs per share Source	second quarter 2026	0.18	New
Revenue Source	full year 2026	relatively flat compared to 2025

What changed from last quarter

New guidance: The release gives second-quarter 2026 guidance for revenue, GAAP EPS and non-GAAP EPS. The prior release gave first-quarter 2026 guidance. Source
New: David Ryzhik is named Senior Vice President and Interim CFO in this release. The prior release quoted Jamie Coogan as Executive Vice President and Chief Financial Officer. Source

Results and growth drivers

Revenue rose from a year earlier: Revenue was $198,956 thousand, against $192,563 thousand in the first quarter of 2025. The release headline gives revenue of $199.0 million. Source
DRAM and HBM demand highlighted: Management called demand in DRAM and HBM a clear highlight, with sequential growth building on momentum exiting 2025. Source
Operating income fell year over year: GAAP operating income was $7,950 thousand, against $29,159 thousand a year earlier. GAAP operating margin was 4.0%, against 15.1%. Source
Net income and EPS declined: Net income was $9,214 thousand, against $28,579 thousand. Diluted EPS was $0.30, against $0.88. Non-GAAP diluted EPS was $0.72, against $1.06. Source
Adjusted EBITDA lower year over year: Adjusted EBITDA was $27,748 thousand, a 13.9% margin, against $40,001 thousand and a 20.8% margin a year earlier. Source

Products, services and end markets

Product and services revenue both rose: Product revenue was $188,008 thousand, against $182,824 thousand. Services revenue was $10,948 thousand, against $9,739 thousand a year earlier. Source
CS&I flagged as strategic driver: Management said CS&I remains an area of focus and is becoming an increasingly important strategic driver across cycles, as the installed base expands. Source
Memory growth offset by digestion: Management said growth in Memory is offset by continued digestion of capacity in the Power and General Mature markets. Source

“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.”
President and CEO Russell Low

Costs and margins

Gross and operating margins fell: Non-GAAP gross margin was 40.7%, against 46.4% a year earlier. Non-GAAP operating margin was 11.7%, against 18.5%. Source
Cost of revenue rose on product costs: Cost of revenue was $118,375 thousand, against $103,795 thousand. Product cost was $105,735 thousand, up from $94,500 thousand. Source
Operating expenses rose, led by G&A: Total operating expenses were $72,631 thousand, against $59,609 thousand. General and administrative rose to $26,761 thousand from $17,357 thousand. Source

Demand and order book

Bookings activity encouraging to management: Management said it was encouraged by first-quarter bookings activity and robust customer engagement across a wide range of projects. Source
Momentum expected into 2027: Management said the first-quarter engagement positions Axcelis for increased momentum exiting 2026 and into 2027. Source
Second-half revenue increase expected: Management expects revenue to increase in the second half, supported by firming order trends. No second-half figure was given. Source

“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”
Senior Vice President and Interim CFO David Ryzhik

Cash, capital and shareholder returns

Cash of about $570 million: Management cited approximately $570 million of cash. Cash and cash equivalents were $150,829 thousand, with the balance in short- and long-term investments. Source
Operating cash flow and capex lower: Operating cash flow was $18,139 thousand, against $39,795 thousand. Capital expenditures were $1,839 thousand, against $4,960 thousand. Source
No share repurchases this quarter: No common stock was repurchased in the quarter, against $18,178 thousand a year earlier. Source
Capital allocation flexibility cited: Management cited ample flexibility to fund its growth objectives and maintain a value-creative capital allocation strategy. Source

Strategy, merger and leadership

Innovation investment continues: Management said it continues investing in innovation to capture the opportunities it sees ahead. Source
Veeco transaction costs excluded: Transaction and integration costs tied to the Veeco merger were $10,398 thousand, against $481 thousand, and are excluded from non-GAAP results. Source
Interim CFO named in release: David Ryzhik is named Senior Vice President and Interim CFO. The prior release quoted Jamie Coogan as Executive Vice President and Chief Financial Officer. Source

Coming up, as management said on 7 May 2026

Veeco merger closing expected: Management said it looks forward to completing the Veeco merger, which it expects to close in the second half of 2026. Source
Second-half revenue increase anticipated: Management said revenue is anticipated to increase in the second half of 2026. No figure was given. Source

Risks management discussed

Demand: Digestion of capacity in the Power and General Mature markets is offsetting Memory growth, which management said keeps 2026 revenue flat. Source
Operational: Transaction and integration costs tied to the Veeco merger agreement are recorded in GAAP expense this quarter and are included in the second-quarter guidance. Source

Earlier plans management reported on

Ahead: Management said Q1 results were slightly above expectations. The prior release had guided Q1 revenue to about $195 million, GAAP EPS to about $0.38 and non-GAAP EPS to about $0.71. Source
Not stated: The prior release expected Memory momentum to continue in 2026. This release reports meaningful Memory acceleration in the first quarter.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Axcelis Announces Financial Results for First Quarter 2026

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 - 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.”

News Release

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.

News Release

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

Forward-looking statements notice

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.

News Release

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

News Release

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

News Release

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

News Release

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.

News Release

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
Restructuring	-	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 integration	(10,398)	(481)
Bad debt expense	(65)	-
Restructuring	-	(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 integration	10,398	481
Bad debt expense	65	-
Restructuring	-	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 adjustments	2,151	915
Non-GAAP income tax provision	$3,562	$5,420
GAAP net income	$9,214	$28,579
Transaction and integration	10,398	481
Bad debt expense	65	-
Restructuring	-	1,149
Stock-based compensation	4,899	4,903
Income tax effect of non-GAAP adjustments	(2,151)	(915)
Non-GAAP net income	$22,425	$34,197
GAAP diluted EPS	$0.30	$0.88
Transaction and integration	0.34	0.01
Bad debt expense	-	-
Restructuring	-	0.04
Stock-based compensation	0.16	0.15
Income tax effect of non-GAAP adjustments	(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.

News Release

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 integration	10,398	481
Bad debt expense	65	-
Restructuring	-	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 include $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.

Second Quarter Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

	Three months ended June 30, 2026
GAAP diluted EPS	$0.57
Transaction and integration	0.18
Stock-based compensation	0.21
Income tax effect of non-GAAP adjustments	(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.

Contacts
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