Axcelis Announces Financial Results for Third Quarter 2026
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 | ||||||
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%. |
SOURCE Axcelis Technologies, Inc.
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