Veeco Instruments Inc. (VECO)
NASDAQ:VECO
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Veeco
(NASDAQ:VECO)
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Rating:64Neutral
Price Target:
$54.00
▲(25.67% Upside)
Action:ReiteratedDate:05/06/26
VECO scores 64 driven primarily by a healthier balance sheet and improving multi-year growth visibility from reiterated guidance and large strategic orders. These positives are tempered by volatile profitability/margins and a very expensive valuation (P/E ~380), while technicals are supportive but look overextended.
Positive Factors
Balance-sheet resilience
A materially lower debt-to-equity (~0.29) and an expanding equity base provide financial flexibility through semiconductor cycles. This reduces refinancing risk, supports R&D/capacity investments and enables M&A or capital allocation choices that sustain long-term competitiveness.
Negative Factors
Margin and earnings volatility
Meaningful margin compression and profit volatility reduce earnings predictability and long-run cash generation. For capital-equipment firms, inconsistent margins heighten sensitivity to mix, license delays and price competition, complicating reinvestment and free-cash-flow stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet resilience
A materially lower debt-to-equity (~0.29) and an expanding equity base provide financial flexibility through semiconductor cycles. This reduces refinancing risk, supports R&D/capacity investments and enables M&A or capital allocation choices that sustain long-term competitiveness.
Read all positive factors
Veeco (VECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.08B
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)380.3
Beta (1Y)1.51
Revenue Growth-7.39%
EPS Growth-54.62%
CountryUS
Employees1,231
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.61
Shares Outstanding60,391,990
10 Day Avg. Volume984,924
30 Day Avg. Volume1,018,935
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 Cap1.24
Enterprise Value/Revenue5.75
Enterprise Value/Gross Profit14.40
Enterprise Value/Ebitda51.92
Forecast
1Y Price Target
$40.00Price Target Upside-6.91% 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:May 05, 2026
(Q1-2026)
| Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful commercial wins (notably the $250M+ indium phosphide-related orders), clear positioning in AI-driven markets, capacity expansion plans and reiterated full-year guidance — all supporting a positive multi-year growth outlook. Near-term challenges include a modest sequential revenue mix shift, a gross margin impact from a delayed China shipment requiring export licensing (~$8M), increased working capital, and some product evaluations requiring further engineering before high-volume adoption. Overall, the positives (large strategic orders, SAM expansions and capacity plans) materially outweigh the near-term operational and regional headwinds.Positive Updates
Revenue and EPS in Line with Guidance
Q1 revenue of $158.0M, non-GAAP operating income of $9M and non-GAAP diluted EPS of $0.14 — all within the company's guidance ranges.
Negative Updates
Q1 Gross Margin Compression and Shipment License Impact
Q1 non-GAAP gross margin came in at ~36% (down from ~37.7% prior quarter); management cited an ~$8M top-line impact from one LSA system to a China customer that required an export license, which put results outside guidance range for the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EPS in Line with Guidance
Q1 revenue of $158.0M, non-GAAP operating income of $9M and non-GAAP diluted EPS of $0.14 — all within the company's guidance ranges.
Read all positive updates
Company Guidance
Veeco guided Q2 non‑GAAP revenue of $170–190M, gross margin of 38–40%, operating expenses of $52–55M, net income of $12–21M and diluted EPS of $0.20–0.32 on ~64M shares, and reiterated full‑year 2026 revenue of $740–800M with diluted non‑GAAP EPS of $1.50–1.85 and growth accelerating in H2; for context, Q1 results were revenue $158M, non‑GAAP operating income ~$9M, non‑GAAP diluted EPS $0.14 on 62M shares, gross margin ~36%, OpEx $49M, net income ~$9M, cash & short‑term investments $383M, AR $151M, inventory $282M, AP $60M, contract liabilities/customer deposits $69M, operating cash flow $8M and CapEx $5M; management also said >$250M of indium‑phosphide‑related orders will begin shipping in Q3 2026 with a major ramp in Q1 2027 and plans to increase SPECTOR IBD capacity ~10x by early 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
42.97
Price Trends
33.35
Positive
32.18
Positive
29.06
Positive
Market Momentum
2.72
Negative
76.94
Negative
87.26
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 42.97 is above the 20-day moving average (MA) of 36.87, above the 50-day MA of 33.35, and above the 200-day MA of 29.06, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 76.94 is Negative, neither overbought nor oversold. The STOCH value of 87.26 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.92B | 12.15 | 11.84% | ― | -0.06% | -1.01% | |
66 Neutral | $3.87B | -97.29 | -10.74% | ― | 31.62% | 62.85% | |
64 Neutral | $3.08B | 380.33 | 2.64% | ― | -7.39% | -54.62% | |
63 Neutral | $7.00B | -8.44 | -28.42% | ― | 40.89% | 42.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.97B | 56.38 | 4.96% | 4.48% | -8.01% | -44.59% | |
59 Neutral | $3.67B | -12.47 | -30.27% | ― | -44.88% | -24.76% |
* Technology Sector Average
VECO
Veeco
50.93
32.04
169.61%
HIMX
Himax Technologies
11.56
4.38
60.89%
MXL
Maxlinear
78.12
67.20
615.38%
PLAB
Photronics
49.48
30.49
160.56%
LASR
nLIGHT
69.41
61.22
747.50%
NVTS
Navitas Semiconductor
15.92
13.96
712.24%
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 ...
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.