Axcelis Technologies Stock Earnings Reports

Axcelis reported Q1 2026 revenue of $199 million and adjusted diluted EPS of $0.72, slightly ahead of expectations (the quarter included a $5 million one-time customer settlement). System revenue was about $126 million and CS&I (service, spares & consumables, upgrades) was $73 million and grew >30% year-over-year. Bookings were roughly flat sequentially at $128 million, backlog ended the quarter at $453 million, and bookings marked a second consecutive quarter of year-over-year improvement on a trailing-12-month basis. By end market: memory showed meaningful revenue and booking increases (DRAM/HBM) and Axcelis expects strong memory growth for full-year 2026; silicon carbide (SiC) showed encouraging customer engagement though shipments moderated sequentially; general mature remains muted but utilization and spares/consumables are improving. Management reiterated full-year 2026 revenue should be roughly flat vs. 2025, with the business second-half weighted and a setup for growth in 2027. Balance sheet: $570 million cash, cash equivalents and marketable securities; Q1 free cash flow $16 million (which included $12 million of Veeco merger transaction expenses). Near-term guidance: Q2 revenue ~ $205 million, gross margin ~43%, operating expenses ~ $59 million, adjusted EBITDA ~ $34 million, and Q2 diluted EPS ~ $0.90. Management noted a CFO transition (interim CFO David Ryzhik) and that they are continuing to pursue the pending merger with Veeco, with China regulatory approval being the remaining clearance. Key investor takeaways: improving momentum in CS&I and memory, constructive signs in SiC but near-term softness in general mature, healthy cash position, conservative full-year guidance (flat) with expectations for recovery/return to growth in 2027, and ongoing strategic combination with Veeco.