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Veeco
(NASDAQ:VECO)
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Rating:65Neutral
Price Target:
$57.00
▲(10.34% Upside)
Action:Reiterated
Date:08/06/26
Overall score reflects solid fundamental underpinnings (stronger cash generation and a conservatively levered balance sheet) and a constructive earnings update with raised guidance and strong order visibility. These positives are tempered by meaningfully compressed margins/returns, a technically weakened intermediate-term trend, and a very high P/E that leaves little room for execution missteps.
Positive Factors
Strong free cash flow generation
Sustained, rapidly rebounding free cash flow gives Veeco durable internal funding to support capacity builds, R&D and aftermarket investments without heavy reliance on external financing. This cash convertibility cushions the firm through semiconductor cycles and funds 2027 ramp preparations.
Negative Factors
Compressed profitability and low returns
Sharp margin compression and materially lower returns (ROE ~2.6%) signal weakened operating leverage and mix pressures. If margins fail to recover as capacity comes online, the company’s ability to convert revenue gains into sustainable profits and shareholder returns will remain challenged.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, rapidly rebounding free cash flow gives Veeco durable internal funding to support capacity builds, R&D and aftermarket investments without heavy reliance on external financing. This cash convertibility cushions the firm through semiconductor cycles and funds 2027 ramp preparations.
Read all positive factors
Veeco (VECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.05B
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)127.2
Beta (1Y)1.45
Revenue Growth-7.71%
EPS Growth-66.03%
CountryUS
Employees1,265
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.38
Shares Outstanding61,033,485
10 Day Avg. Volume890,082
30 Day Avg. Volume1,418,868
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)1.91
Price to Sales (P/S)2.55
P/FCF Ratio37.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$60.50Price Target Upside17.11% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.63
Revenue Forecast (FY)$778.56M
Veeco Business Overview & Revenue Model
Company Description
Veeco Instruments Inc., operating globally with its subsidiaries, specializes in the engineering, production, sale, and support of advanced semiconductor and thin film process equipment used primarily in the manufacture of electronic devices. Thei...
How the Company Makes Money
Veeco primarily makes money by selling capital equipment systems to device manufacturers, foundries, and research/industrial customers, recognizing revenue from tool shipments/acceptance and associated customer contracts. A key revenue stream is t...
Veeco Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook driven by strong Q2 results, significant order momentum (notably a $200M advanced packaging order), sequential and year-over-year growth across semiconductor, compound semiconductor and data storage end markets, meaningful product validation (NSA follow-on orders and record LSA/NSA revenue), and a healthy cash position. Management is deliberately investing ahead of expected 2027 demand — adding capacity, people and outsourced partners — which creates near-term pressure on margins and operating expenses (approximately $10M incremental OpEx and ~75 bps gross margin headwind) and led to a tempered EPS outlook despite higher revenue guidance. A remaining regulatory approval in China for the Axcelis merger is a noted execution risk. Overall, the positive drivers and strong backlog/visibility substantially outweigh the manageable near-term costs and regulatory uncertainty.Positive Updates
Quarterly Revenue and Profitability Exceeded Expectations
Revenue of $193 million for Q2 2026, with non-GAAP operating income of $23 million and non-GAAP diluted EPS of $0.33, results that exceeded prior guidance and Street expectations.
Negative Updates
Near-Term Margin and Expense Impact from Investing Ahead of Revenue
Management is investing ahead of expected 2027 demand (manufacturing expansion and outsourced partnerships), which will add approximately $10 million of incremental operating expenses for full year 2026 and is expected to negatively impact gross margin by roughly 75 basis points.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue and Profitability Exceeded Expectations
Revenue of $193 million for Q2 2026, with non-GAAP operating income of $23 million and non-GAAP diluted EPS of $0.33, results that exceeded prior guidance and Street expectations.
Read all positive updates
Company Guidance
Veeco raised its outlook off a strong Q2 (revenue $193M; semiconductor revenue $131M, +20% QoQ and 68% of sales; compound semi $21M, +9% QoQ; data storage $22M, +117% QoQ; gross margin 39.5%; non‑GAAP operating income $23M; OpEx $53.3M; net income ~$22M; diluted EPS $0.33 on ~67M shares; cash & short‑term investments $429M; cash from ops $51M). For Q3 management guided revenue of $200–220M, gross margin 41–42%, OpEx $57–58M, net income $23–33M and diluted EPS $0.35–0.49 (on ~67M shares). Full‑year 2026 non‑GAAP guidance was updated to revenue $780–810M, gross margin 40–42%, OpEx $215–225M and diluted EPS $1.36–1.61 (≈67M shares), reflecting about $10M of incremental OpEx and ~75 bps of gross margin headwind from spending ahead to more than double advanced packaging and silicon photonics capacity for 2027; management also expects semiconductor revenue to grow >10% in 2026, compound semi to roughly double, and data storage to double year‑over‑year.Veeco Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 682.72M | 664.29M | 717.30M | 666.43M | 646.14M | 583.28M |
| Gross Profit | 258.17M | 265.41M | 304.00M | 285.06M | 263.15M | 242.27M |
| EBITDA | 56.84M | 51.66M | 105.02M | 8.40M | 88.14M | 80.10M |
| Net Income | 23.24M | 35.39M | 73.71M | -30.37M | 166.94M | 26.04M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.33B | 1.25B | 1.23B | 1.13B | 898.98M |
| Cash, Cash Equivalents and Short-Term Investments | 429.40M | 390.23M | 344.31M | 305.44M | 302.41M | 223.93M |
| Total Debt | 257.01M | 262.01M | 314.27M | 310.50M | 311.57M | 266.71M |
| Total Liabilities | 511.68M | 440.29M | 480.81M | 556.60M | 550.36M | 461.35M |
| Stockholders Equity | 902.78M | 885.51M | 770.77M | 672.44M | 577.82M | 437.63M |
Cash Flow | ||||||
| Free Cash Flow | 88.00M | 45.70M | 45.70M | 33.74M | 83.88M | 27.10M |
| Operating Cash Flow | 107.76M | 63.81M | 63.81M | 61.67M | 108.48M | 67.74M |
| Investing Cash Flow | -44.79M | -64.55M | -64.55M | -53.33M | -68.88M | 44.53M |
| Financing Cash Flow | -21.45M | -12.58M | -12.58M | -4.68M | -4.55M | -122.03M |
Veeco Technical Analysis
Positive
51.66
Price Trends
61.09
Negative
53.05
Negative
41.80
Positive
Market Momentum
-2.98
Negative
47.33
Neutral
75.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VECO, the sentiment is Positive. The current price of 51.66 is below the 20-day moving average (MA) of 52.61, below the 50-day MA of 61.09, and above the 200-day MA of 41.80, indicating a neutral trend. The MACD of -2.98 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VECO.
Veeco Risk Analysis
Veeco disclosed 44 risk factors in its most recent earnings report. Veeco reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veeco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.79B | 11.10 | 13.39% | ― | 0.52% | 41.86% | |
67 Neutral | $3.88B | -228.04 | -5.40% | ― | 40.91% | 74.24% | |
65 Neutral | $3.05B | 127.19 | 2.64% | ― | -7.71% | -66.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $2.19B | 68.30 | 3.60% | 2.00% | -10.57% | -62.96% | |
53 Neutral | $6.06B | -56.15 | -22.37% | ― | 50.50% | 52.01% | |
50 Neutral | $2.84B | -8.16 | -61.50% | ― | -46.40% | -104.24% |
* Technology Sector Average
VECO
Veeco
52.96
33.02
165.60%
HIMX
Himax Technologies
13.35
4.86
57.32%
MXL
Maxlinear
67.46
52.26
343.82%
PLAB
Photronics
31.97
12.28
62.37%
LASR
nLIGHT
75.25
55.58
282.56%
NVTS
Navitas Semiconductor
12.35
6.00
94.49%
Veeco Corporate Events
Executive/Board ChangesShareholder Meetings
Veeco Shareholders Back Directors, Incentive Plan and Auditor
Positive
May 7, 2026
At its 2026 Annual Meeting held on May 7, 2026, Veeco shareholders elected directors Kathleen A. Bayless, Gordon Hunter and Lena Nicolaides, Ph.D., with each nominee receiving a clear majority of votes cast from the 60,391,991 shares entitled to v...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.