Veeco Instruments (NASDAQ:VECO) Posts Earnings Results, Misses Expectations By $0.06 EPS

Veeco Instruments (NASDAQ:VECO) issued its earnings results on Tuesday. The semiconductor company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.06), FiscalAI reports. The business had revenue of $158.34 million for the quarter, compared to analysts’ expectations of $160.07 million. Veeco Instruments had a return on equity of 3.50% and a net margin of 3.53%.The company’s revenue for the quarter was down 5.4% on a year-over-year basis. During the same period last year, the business earned $0.37 EPS. Veeco Instruments updated its Q2 2026 guidance to 0.200-0.320 EPS and its FY 2026 guidance to 1.500-1.850 EPS.

Here are the key takeaways from Veeco Instruments’ conference call:

• $250M+ orders received for MOCVD, wet processing and Spector ion‑beam deposition tools to support indium phosphide laser production — shipments begin in Q3 2026 with the major revenue ramp expected in Q1 2027, underscoring Veeco’s role in silicon photonics.
• Management is expanding manufacturing capacity — including plans to increase Spector IBD capacity roughly 10x by early 2027 (with potential further expansion) and adding production footprint/outsourced partners to meet accelerating demand.
• Q1 results were within guidance: revenue $158M, non‑GAAP operating income ~$9M and EPS $0.14; Veeco reiterated full‑year 2026 revenue guidance of $740–$800M and non‑GAAP EPS $1.50–$1.85 and issued a Q2 guide of $170–$190M.
• Gross margin compressed to ~36% in Q1 partly due to an ~$8M top‑line impact from a delayed LSA system shipment to a China customer that now requires a U.S. export license, highlighting regulatory and execution risk.
• The proposed merger with Axcelis is approved by shareholders and regulators except for China antitrust approval, leaving closing timing and integration outcomes uncertain until that clearance is received.

Veeco Instruments Trading Up 25.2%

Shares of VECO opened at $62.01 on Thursday. The firm has a market capitalization of $3.74 billion, a P/E ratio of 163.19 and a beta of 1.36. Veeco Instruments has a 12-month low of $18.31 and a 12-month high of $65.43. The company has a current ratio of 4.75, a quick ratio of 3.20 and a debt-to-equity ratio of 0.26. The firm has a 50-day moving average price of $37.70 and a 200 day moving average price of $33.02.

Analysts Set New Price Targets

VECO has been the topic of a number of analyst reports. Citigroup raised their target price on Veeco Instruments from $40.00 to $60.00 and gave the company a “buy” rating in a research report on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Veeco Instruments in a research report on Wednesday, January 21st. Needham & Company LLC restated a “hold” rating on shares of Veeco Instruments in a research report on Thursday, February 26th. Finally, Zacks Research downgraded Veeco Instruments from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $31.50.

Insider Buying and Selling at Veeco Instruments

In related news, CEO William John Miller sold 50,000 shares of Veeco Instruments stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $31.62, for a total value of $1,581,000.00. Following the completion of the transaction, the chief executive officer owned 414,543 shares in the company, valued at approximately $13,107,849.66. The trade was a 10.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.70% of the company’s stock.

Hedge Funds Weigh In On Veeco Instruments

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC increased its position in shares of Veeco Instruments by 75.6% during the second quarter. Smartleaf Asset Management LLC now owns 2,366 shares of the semiconductor company’s stock worth $49,000 after acquiring an additional 1,019 shares during the period. Johnson Financial Group Inc. purchased a new position in shares of Veeco Instruments in the 3rd quarter valued at about $91,000. Tower Research Capital LLC TRC boosted its stake in shares of Veeco Instruments by 152.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,160 shares of the semiconductor company’s stock valued at $125,000 after buying an additional 3,719 shares during the period. Russell Investments Group Ltd. grew its position in shares of Veeco Instruments by 9.9% during the second quarter. Russell Investments Group Ltd. now owns 6,421 shares of the semiconductor company’s stock worth $130,000 after buying an additional 580 shares in the last quarter. Finally, Quadrant Capital Group LLC purchased a new stake in shares of Veeco Instruments during the third quarter worth approximately $146,000. Hedge funds and other institutional investors own 98.46% of the company’s stock.

About Veeco Instruments

Veeco Instruments Inc (NASDAQ: VECO) is a leading supplier of process equipment for the semiconductor, data storage, wireless communications, power electronics and advanced packaging industries. The company designs, manufactures and services precision tools used to grow, deposit and etch thin films on substrates, enabling the fabrication of chips, light-emitting diodes (LEDs), micro-electromechanical systems (MEMS) and high-density storage devices. Veeco’s platforms are deployed across fabrication facilities worldwide, where they support key processes in materials science and device manufacturing.

Veeco’s product portfolio spans molecular beam epitaxy (MBE), metal organic chemical vapor deposition (MOCVD), atomic layer deposition (ALD), ion beam etch and deposition, and high-precision wet and dry etch systems.