Veeco Instruments Inc. (VECO)
NASDAQ:VECO
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Veeco
(NASDAQ:VECO)
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Rating:64Neutral
Price Target:
$43.00
▲(5.60% Upside)
Action:ReiteratedDate:04/11/26
The score is driven by solid balance-sheet strength and constructive 2026 guidance/backlog visibility, partially offset by volatile profitability and recent margin/FCF softening. Technicals are supportive but appear overbought, while a high P/E with no dividend support weighs on the overall rating.
Positive Factors
Improving balance sheet / de-leveraging
Sustained reduction in leverage strengthens financial resilience for a cyclical capital‑equipment business. Lower debt reduces refinancing risk, increases room for R&D, product launches and M&A, and supports operations through demand lulls over the next several quarters.
Negative Factors
Margin compression and earnings volatility
Material margin contraction and uneven revenue weaken earnings quality and cash conversion. Persistent mix, tariff and sign‑off effects could keep profitability volatile, limiting predictable free cash flow and hindering sustained reinvestment or buffer against downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving balance sheet / de-leveraging
Sustained reduction in leverage strengthens financial resilience for a cyclical capital‑equipment business. Lower debt reduces refinancing risk, increases room for R&D, product launches and M&A, and supports operations through demand lulls over the next several quarters.
Read all positive factors
Veeco (VECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend YieldN/A
Average Volume (3M)1.05M
Price to Earnings (P/E)47.9
Beta (1Y)1.53
Revenue Growth-3.90%
EPS Growth-41.66%
CountryUS
Employees1,231
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.24
Shares Outstanding60,391,990
10 Day Avg. Volume866,288
30 Day Avg. Volume1,052,925
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 Cap1.05
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit9.62
Enterprise Value/Ebitda34.68
Forecast
1Y Price Target
$33.33Price Target Upside-18.15% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.53
Revenue Forecast (FY)$730.52M
Veeco Business Overview & Revenue Model
Company Description
Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices worldwide. The company offers laser annealing, ion beam depositi...
How the Company Makes Money
Veeco primarily makes money by selling capital equipment systems used in advanced manufacturing, with revenue recognized from system shipments/acceptance depending on contract terms. A significant portion of revenue is generated from its thin-film...
Veeco Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call delivered a cautiously optimistic tone: 2025 showed mixed results with overall revenue down 7%, but the company reported record semiconductor revenue, a 35% backlog increase, doubled advanced packaging sales, strong product traction (LSA, IBD300, Propel, Lumina), a solid cash position, and a bullish 2026 guide (midpoint +16%). Key near-term risks include product-mix margin pressure, tariff headwinds (~100 bps), segment declines (compound semi, data storage in 2025), rising inventory, and pending regulatory clearance in China for the Axcelis merger. Overall, the momentum in orders, backlog, product wins, and 2026 guidance outweigh the 2025 weaknesses.Positive Updates
Record Semiconductor Revenue and Strong FY Financials
Full-year 2025 revenue was $664 million (down 7% YoY), while semiconductor revenue reached a record $477 million, up 2% YoY and representing 72% of total revenue. Full-year non-GAAP gross margin was 41%, operating income was $84 million, net income was $80 million, and diluted EPS was $1.33.
Negative Updates
Overall Revenue Decline in 2025
Total revenue for 2025 declined 7% year-over-year to $664 million, reflecting weaker pockets of the business despite semiconductor strength.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Semiconductor Revenue and Strong FY Financials
Full-year 2025 revenue was $664 million (down 7% YoY), while semiconductor revenue reached a record $477 million, up 2% YoY and representing 72% of total revenue. Full-year non-GAAP gross margin was 41%, operating income was $84 million, net income was $80 million, and diluted EPS was $1.33.
Read all positive updates
Company Guidance
Veeco provided Q1 2026 guidance of $150–170M revenue, 37–38% gross margin, $48–50M OpEx, $9–15M net income and $0.14–0.24 diluted EPS on ~62M shares, and full‑year 2026 guidance of $740–800M revenue (midpoint $770M, +16% YoY), 41–43% gross margin, $205–220M OpEx, $94–115M net income and $1.50–1.85 diluted EPS on ~63M shares, noting revenue growth will be weighted to the second half of 2026; they expect semiconductor revenue to grow ~15% to about $550M, compound‑semiconductor to rise roughly one‑third to ~$80M, data storage to double to ~$80M and scientific & other to decline to ~ $60M (down ~33%), with a year‑end backlog of $555M (up $145M, +35%), cash/short‑term investments of $390M, FY2025 revenue of $664M and EPS $1.33, Q4 revenue $165M and EPS $0.24, and management targeting ~45% gross margin exit in H2 as volumes and higher‑margin new products ramp while being fully booked for 2026 with orders extending into 2027.Veeco Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 664.29M | 717.30M | 666.43M | 646.14M | 583.28M |
| Gross Profit | 265.41M | 304.00M | 285.06M | 263.15M | 242.27M |
| EBITDA | 51.66M | 105.02M | 8.40M | 88.14M | 82.77M |
| Net Income | 35.39M | 73.71M | -30.37M | 166.94M | 26.04M |
Balance Sheet | |||||
| Total Assets | 1.33B | 1.25B | 1.23B | 1.13B | 898.98M |
| Cash, Cash Equivalents and Short-Term Investments | 390.23M | 344.31M | 305.44M | 302.41M | 223.93M |
| Total Debt | 257.85M | 314.27M | 310.50M | 311.57M | 266.71M |
| Total Liabilities | 440.29M | 480.81M | 556.60M | 550.36M | 461.35M |
| Stockholders Equity | 885.51M | 770.77M | 672.44M | 577.82M | 437.63M |
Cash Flow | |||||
| Free Cash Flow | 45.70M | 45.70M | 33.74M | 83.88M | 27.10M |
| Operating Cash Flow | 63.81M | 63.81M | 61.67M | 108.48M | 67.74M |
| Investing Cash Flow | -64.55M | -64.55M | -53.33M | -68.88M | 44.53M |
| Financing Cash Flow | -12.58M | -12.58M | -4.68M | -4.55M | -122.03M |
Veeco Technical Analysis
Positive
40.72
Price Trends
32.60
Positive
31.71
Positive
28.72
Positive
Market Momentum
2.11
Negative
72.69
Negative
90.15
Negative
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 40.72 is above the 20-day moving average (MA) of 35.10, above the 50-day MA of 32.60, and above the 200-day MA of 28.72, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 72.69 is Negative, neither overbought nor oversold. The STOCH value of 90.15 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.69B | 12.15 | 11.84% | ― | -2.04% | 8.84% | |
66 Neutral | $3.90B | -81.41 | -10.74% | ― | 12.05% | 14.24% | |
64 Neutral | $2.42B | 47.89 | 4.13% | ― | -3.90% | -41.66% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.58B | 32.53 | 4.96% | 4.48% | -3.62% | -20.33% | |
56 Neutral | $1.84B | -11.04 | -28.80% | ― | 7.53% | 22.97% | |
52 Neutral | $2.27B | -12.55 | -30.27% | ― | -38.06% | -50.14% |
* Technology Sector Average
VECO
Veeco
40.72
21.39
110.66%
HIMX
Himax Technologies
9.98
3.56
55.33%
MXL
Maxlinear
21.56
11.13
106.71%
PLAB
Photronics
45.71
27.72
154.09%
LASR
nLIGHT
66.87
59.62
822.34%
NVTS
Navitas Semiconductor
9.87
8.13
467.24%
Veeco Corporate Events
M&A TransactionsShareholder Meetings
Veeco Shareholders Approve Axcelis Merger-Related Proposals
Positive
Feb 6, 2026
On February 6, 2026, Veeco Instruments reported that its stockholders had overwhelmingly approved all proposals tied to the company’s planned merger with Axcelis Technologies, including adoption of the merger agreement and advisory approval ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Veeco Faces Export Scrutiny as Axcelis Merger Advances
Negative
Feb 2, 2026
On September 30, 2025, Axcelis Technologies agreed to acquire Veeco Instruments in an all-stock merger that will make Veeco a wholly owned subsidiary of Axcelis, with the deal progressing through global regulatory reviews; by late January 2026 the...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Veeco Enhances Merger Disclosures Amid Shareholder Litigation
Negative
Jan 28, 2026
Veeco Instruments Inc. disclosed that, following its September 30, 2025 merger agreement under which it would be acquired by Axcelis Technologies and become a wholly owned subsidiary, it has faced a wave of stockholder litigation and demand letter...
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.