Axcelis Technologies (ACLS) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: N/A
• Average Volume (3M): 831.34K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.77
• Revenue Growth: -20.69%
• EPS Growth: -37.67%
• Country: US
• Employees: 1,524
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.49
• Shares Outstanding: 30,699,202
• 10 Day Avg. Volume: 1,335,018
• 30 Day Avg. Volume: 831,341
• PEG Ratio: -0.55
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 23.70
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 6.32
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $92.00
• Price Target Upside: 14.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.42
• Revenue Forecast (FY): $868.19M

• Rating: 74 Outperform
• Price Target: $110.00 ▲(37.23% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven mainly by solid financial quality (notably a very strong, low-leverage balance sheet and positive free cash flow) and supportive technical trend (price above major moving averages). Offsetting factors include a valuation that looks less compelling versus cooling TTM growth/margins and earnings-call guidance indicating a weaker near-term quarter and some margin pressure.

Positive Factors

Strong balance sheet & low leverage

Very low leverage and sizable equity provide durable financial flexibility through semiconductor cycles. This balance-sheet strength supports capital allocation (R&D, buybacks, M&A), buffers downturns, and preserves borrowing capacity for multi‑year investments or to absorb cyclical revenue volatility.

Growing CS&I aftermarket revenue

Expanding aftermarket sales and services create a more recurring, higher-margin revenue stream that cushions systems cyclicality. Durable installed base monetization improves revenue stability, margin resilience and predictable cash generation across 2–6 month horizons and beyond.

Product leadership in high‑current implanters

New Purion H6 and strengthened high-current shipments signal technological differentiation in ion implantation. Sustained product leadership drives share gains with memory and advanced-node customers, supports backlog quality, and strengthens competitive barriers over multiple product cycles.

Negative Factors

Revenue and margin deceleration

Top-line weakness and slowing cash-flow growth reflect softer system demand and margin compression: net margins fell from 20%+ to ~14% TTM. Persistent revenue decline reduces reinvestment capacity and may pressure long‑term operating leverage, slowing earnings recovery into the next fiscal periods.

Near‑term guidance shows sequential weakness

Guidance signaling an ~18% sequential systems decline and margin step‑down to ~41% highlights visibility and demand timing risks. Such near‑term softness can compress operating leverage, reduce free cash flow generation in the short run, and delay reinvestment or share‑repurchase plans.

Merger regulatory and litigation risk

Pending Veeco merger faces regulatory approvals and shareholder litigation, creating execution and timing risk. Protracted approval or legal challenges could divert management focus, impose transaction costs, and delay expected strategic or scale benefits, affecting multi‑quarter planning and integration value.

Axcelis Technologies Business Overview & Revenue Model

Company Description

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.

How the Company Makes Money

Axcelis Technologies generates revenue primarily through the sale of its semiconductor equipment and related services. Key revenue streams include the sale of ion implantation systems, which are sold to semiconductor manufacturers for use in production facilities. Additionally, the company earns revenue from the sale of spare parts and consumables, as well as from service contracts that provide maintenance and support for its equipment. Significant partnerships with major semiconductor manufacturers also contribute to its earnings, as these relationships can lead to long-term contracts and repeat business. Moreover, the growing demand for advanced semiconductor technologies in various sectors, including consumer electronics, automotive, and telecommunications, drives the company's revenue growth.

Axcelis Technologies Financial Statement Overview

Summary

Strong balance sheet (very low leverage, substantial equity) and positive free cash flow support financial resilience, but fundamentals are cooling: TTM revenue is slightly down and both margins and cash-flow growth have decelerated versus 2023–2024.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) gross margin around 45% and net margin ~14%, indicating the business is still generating healthy earnings. However, growth has clearly rolled over: TTM revenue is down materially (about -1.7%) and profitability has compressed versus 2023–2024 (net margin fell from ~20%+ to ~14% and EBIT margin also stepped down). Overall, the income statement shows a high-quality margin profile but a weaker near-term demand/earnings trajectory.

Balance Sheet

The balance sheet is a key strength: leverage is very low (TTM debt-to-equity ~0.04) and equity is substantial (~$1.03B), giving the company flexibility through semiconductor cycles. Returns remain attractive (TTM return on equity ~13%), though down from the very strong 2022–2024 levels, reflecting the recent earnings slowdown. Net: strong capitalization with limited balance-sheet risk, offset by moderating returns.

Cash Flow

Cash generation is positive with TTM (Trailing-Twelve-Months) operating cash flow (~$118M) and free cash flow (~$109M). Free cash flow still largely tracks earnings (TTM free cash flow to net income ~0.92), which supports earnings quality. The main weakness is deceleration: free cash flow declined (TTM growth about -11.8%) and operating cash flow coverage weakened versus prior years, suggesting less cash conversion in the latest period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	839.05M	1.02B	1.13B	920.00M	662.43M
Gross Profit	376.85M	454.65M	491.30M	401.79M	286.44M
EBITDA	136.93M	251.54M	297.01M	222.07M	136.08M
Net Income	120.24M	200.99M	246.26M	183.08M	98.65M
Balance Sheet
Total Assets	1.36B	1.35B	1.28B	1.01B	753.24M
Cash, Cash Equivalents and Short-Term Investments	374.25M	571.34M	506.15M	432.17M	294.92M
Total Debt	42.33M	43.67M	45.19M	46.41M	47.39M
Total Liabilities	326.67M	335.99M	417.08M	346.38M	214.28M
Stockholders Equity	1.03B	1.01B	864.88M	667.26M	538.96M
Cash Flow
Free Cash Flow	107.01M	128.64M	136.21M	204.92M	141.47M
Operating Cash Flow	118.31M	140.82M	156.87M	215.61M	150.19M
Investing Cash Flow	29.93M	-108.73M	-100.86M	-257.25M	-8.72M
Financing Cash Flow	-124.49M	-71.19M	-68.27M	-65.48M	-52.45M

Axcelis Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLS, the sentiment is Negative. The current price of 80.16 is below the 20-day moving average (MA) of 87.95, below the 50-day MA of 88.11, and above the 200-day MA of 79.86, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACLS.

Axcelis Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIOD	75 Outperform	$3.11B	47.20	3.60%	―	10.45%	4.37%
ACLS	74 Outperform	$2.52B	21.25	11.74%	―	-20.69%	-37.67%
FORM	73 Outperform	$7.34B	133.58	5.48%	―	2.29%	-69.81%
SIMO	73 Outperform	$4.51B	36.33	15.25%	2.22%	-2.26%	9.74%
POWI	64 Neutral	$2.55B	117.11	3.11%	2.27%	10.50%	-52.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IPGP	61 Neutral	$5.82B	178.22	1.50%	―	-7.49%	―

Axcelis Technologies Corporate Events

Axcelis Shareholders Approve Merger-Related Stock Issuance

On February 6, 2026, Axcelis Technologies reported that its stockholders had approved all proposals related to the company’s pending merger with Veeco Instruments at a special meeting convened to consider the transaction. Shareholders backed the issuance of new Axcelis common stock needed to complete the deal, with about 82% of eligible shares represented and more than 95% of votes cast in favor of the share issuance, while an adjournment proposal also passed but was ultimately unnecessary given the strong support. Completion of the merger, under an agreement first announced on September 30, 2025, still depends on remaining customary closing conditions, including final regulatory clearance from China’s State Administration for Market Regulation, and is targeted for the second half of 2026, positioning Axcelis to proceed toward combining operations with Veeco subject to regulatory and integration risks noted by the companies.

The most recent analyst rating on (ACLS) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Axcelis Technologies stock, see the ACLS Stock Forecast page.

Axcelis, Veeco advance merger ahead of shareholder votes

Axcelis Technologies and Veeco Instruments, which entered into a merger agreement on September 30, 2025, reported a series of regulatory milestones and procedural steps toward closing their deal. On January 22, 2026, the United Kingdom’s Investment Security Unit issued a no further action letter for the merger, and the companies determined that filings under Sweden’s Investment Screening Law were not required; on January 27, 2027, Axcelis and Veeco formally waived closing conditions related solely to Swedish investment screening approvals and the associated efforts covenants. The companies are still working to secure final approval from China’s State Administration for Market Regulation, and completion of the transaction remains subject to customary conditions, including shareholder approvals for the Axcelis stock issuance and the Veeco merger agreement at special meetings scheduled for February 6, 2026. Proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended that both Veeco and Axcelis shareholders vote in favor of the deal, and the companies are maintaining their expectation that the merger will close in the second half of 2026, underscoring continued momentum toward combining their operations pending remaining regulatory and shareholder clearances.

The most recent analyst rating on (ACLS) stock is a Buy with a $102.00 price target. To see the full list of analyst forecasts on Axcelis Technologies stock, see the ACLS Stock Forecast page.

Axcelis Supplements Proxy Disclosures Amid Veeco Merger Challenges

On September 30, 2025, Axcelis Technologies and Veeco Instruments signed a merger agreement under which Veeco would be merged into a wholly owned Axcelis subsidiary in an all-stock transaction, ahead of an Axcelis special shareholder meeting set for February 6, 2026 to vote on the deal. Since then, Axcelis and Veeco have been hit with 15 stockholder demand letters and three lawsuits in New York state courts alleging inadequate and misleading disclosures in their joint proxy materials and seeking, among other remedies, to block or unwind the merger. While both companies reject the claims and deny any legal or fiduciary breaches, they have chosen, as of late January 2026, to voluntarily supplement their definitive proxy statement with additional detail on the merger background, board deliberations, financial advisor analyses, director and executive compensation impacts, and potential tax-mitigation actions in order to reduce litigation risk and avoid delays to closing, thereby aiming to preserve the transaction timeline and strategic benefits for shareholders.

The most recent analyst rating on (ACLS) stock is a Hold with a $94.00 price target. To see the full list of analyst forecasts on Axcelis Technologies stock, see the ACLS Stock Forecast page.