Amtech Systems to Report Q1 Earnings: What's in Store for the Stock?

Amtech Systems ASYS is scheduled to report its first-quarter fiscal 2026 results on Feb. 5.

Amtech Systems anticipates revenues to be in the range of $18 million to $20 million for the first quarter of fiscal 2026. The Zacks Consensus Estimate is currently pegged at $19 billion, which indicates a plunge of 22.1% from the year-ago reported figure.

For the first quarter of fiscal 2026, the Zacks Consensus Estimate for earnings is pegged at 7 cents per share, unchanged over the past 30 days. The company had reported earnings of 6 cents per share in the year-ago quarter.

Amtech Systems’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 32.1%.

Amtech Systems, Inc. Price and EPS Surprise

Amtech Systems, Inc. price-eps-surprise | Amtech Systems, Inc. Quote

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence ASYS’ Q1 Results

Amtech Systems has identified advanced packaging as a significant growth opportunity, particularly within artificial intelligence (AI) infrastructure. In the fourth quarter of fiscal 2025, the company observed a strengthening demand for its equipment used in advanced packaging applications, particularly within AI infrastructure. The trend is likely to have continued and aided fiscal first-quarter performance.

In the fourth quarter of fiscal 2025, sales of equipment used in AI infrastructure made up about 30% of Thermal Processing Solutions’ revenues, up from 25% in the third quarter. This shows how quickly AI demand is becoming an important part of Amtech Systems’ business. Per management, bookings in the fiscal fourth quarter suggest that AI-related demand should remain strong going forward. This uptick in demand is expected to have served as a key growth catalyst in the to-be-reported quarter.

Amtech Systems has made substantial progress in restructuring its operations to improve cost efficiency and better align with evolving market demands. Over the last year and a half, it has reduced its factory footprint by lowering its manufacturing factories from seven sites to four sites, while shifting some production to partners.

A core element of this transformation is the adoption of a semi-fabless manufacturing model, which has effectively reduced fixed costs and improved operational leverage. In the fourth quarter, management stated that these steps have resulted in $13 million of annual savings. Amtech Systems’ cost reduction initiatives are likely to have positively aided margins in the to-be-reported quarter.

However, Amtech Systems continues to face weak demand in its mature node semiconductor business, which remains a major headwind. In the fourth quarter of fiscal 2025, ASYS' revenues were affected by persistent weakness in the mature node semiconductor market. This, in turn, resulted in lower sales of front-end equipment and consumables tied to mature node semiconductor applications mainly used in industrial and automotive markets. Continued weakness in mature node demand is likely to have more than offset the benefits of the abovementioned factors in the fiscal first quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Amtech this season. The combination of a positive Earnings ESP and Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

ASYS currently has an Earnings ESP of 0.00% and sports a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

IPG Photonics IPGP has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics is slated to report fourth-quarter 2025 results on Feb. 12. The Zacks Consensus Estimate for IPGP’s fourth-quarter 2025 earnings is pegged at 25 cents per share, up by a penny over the past 30 days, indicating an increase of 38.9% from the year-ago quarter’s reported figure.

Microchip Technology MCHP has an Earnings ESP of +1.34% and sports a Zacks Rank #1 at present.

It is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for Microchip’s third-quarter earnings is pegged at 43 cents per share, up by a penny over the past seven days, indicating a rise of 115% from the year-ago quarter’s reported figure.

Analog Devices ADI has an Earnings ESP of +2.98% and carries a Zacks Rank #2 at present.

Analog Devices is scheduled to report first-quarter fiscal 2026 results on Feb. 18. The Zacks Consensus Estimate for Analog Devices’ first-quarter 2026 earnings is pegged at $2.30 per share, up by 2 cents over the past 30 days, indicating a rise of 41.1% from the year-ago quarter’s reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research