olivLaw · US equity research
Veeco Instruments Inc. VECO
Special Industry Machinery, NEC · SIC 3559 · Vertical: Special Industry Machinery, NEC (SIC 3559)
Veeco Instruments makes semiconductor process equipment based on ion beam, laser annealing, MOCVD and single wafer wet processing technologies. In fiscal 2025 the company reported net sales of 664.3 million USD, with semiconductors making up 72% of total company revenue, and in the second quarter of 2026 sales rose year over year on demand linked to artificial intelligence. The pending merger with Axcelis, still awaiting approvals, puts the company's profile in transition.
At the close of 30 Oct 2026, Veeco Instruments Inc. (VECO) stock was 38.87 USD (−9.18% on the day), with market capitalisation 2.4 bn USD, P/E 108.5 on diluted EPS of 0.36 USD over the last 12 months, beta 1.86, 52-week range 26.39–83.04 USD. Latest reported quarter (Q2 2026): revenue of 193.5 m USD (+16.5% YoY), net income of 11.9 m USD (+1.1% YoY), diluted EPS 0.18 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 34.8
- weak (30–45)
- Bollinger (20, 2)
- 36.77 – 56.34
- in the lower half of the band · %B 0.11 · band width 42.0%
- SMA 50 / 200
- 46.12 / 46.90
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -1.88 / -1.23
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −25.1% | −0.9% | −24.2 pp | — |
| 3 months | −22.3% | +1.2% | −23.5 pp | — |
| 6 months | −22.6% | +4.8% | −27.5 pp | — |
| Year to date | +36.0% | +10.7% | +25.3 pp | — |
| 1 year | +33.3% | +11.1% | +22.2 pp | +22.0% |
| 3 years | +62.4% | +80.7% | −18.4 pp | −9.2% |
| 5 years | +60.0% | +64.6% | −4.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 184.8 m | 182.1 m | 167.3 m | 166.1 m | 165.9 m | 165.0 m | 158.3 m | 193.5 m |
| Cost of revenue | 105.6 m | 108.1 m | 98.8 m | 97.4 m | 98.2 m | 104.5 m | 102.5 m | 118.6 m |
| Gross profit | 79.2 m | 74.0 m | 68.5 m | 68.7 m | 67.7 m | 60.5 m | 55.8 m | 74.8 m |
| Research & development | 32.2 m | 31.0 m | 28.5 m | 31.6 m | 29.0 m | 30.6 m | 29.9 m | 33.3 m |
| SG&A | 25.3 m | 25.1 m | 25.0 m | 23.9 m | 27.3 m | 22.7 m | 26.0 m | 27.6 m |
| Operating income | 24.3 m | 3.9 m | 14.1 m | 12.4 m | 10.6 m | -1.4 m | -2.7 m | 11.9 m |
| Depreciation & amortisation | 6.2 m ≈ | 6.0 m | 5.0 m | 5.1 m ≈ | 4.9 m ≈ | 5.0 m | 5.0 m | 4.9 m ≈ |
| Interest expense | 2.9 m | 2.8 m | 2.5 m | 2.3 m | 2.2 m | 2.2 m | 2.1 m | 2.2 m |
| Pre-tax income | 24.7 m | 4.4 m | 15.0 m | 12.6 m | 11.9 m | -94.0 k | -1.5 m | 13.0 m |
| Income tax | 2.7 m | -10.6 m | 3.0 m | 889.0 k | 1.3 m | -1.2 m | -1.2 m | 1.2 m |
| Net income | 22.0 m | 15.0 m | 11.9 m | 11.7 m | 10.6 m | 1.1 m | -324.0 k | 11.9 m |
| Diluted EPS | 0.36 | 0.25 ≈ | 0.20 | 0.20 | 0.17 | 0.02 ≈ | -0.01 | 0.18 |
| Operating cash flow | 17.6 m ≈ | 28.4 m | 20.0 m | 9.0 m ≈ | 15.5 m ≈ | 24.9 m | 7.9 m | 51.4 m ≈ |
| Capex | 4.0 m ≈ | 5.2 m | 6.8 m | 3.6 m ≈ | 2.6 m ≈ | 3.3 m | 5.1 m | 3.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 89 percentile of its own 19-quarter history (min 7.1, median 32.8, max 211.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 542.1 m | 419.3 m | 454.2 m | 583.3 m | 646.1 m | 666.4 m | 717.3 m | 664.3 m |
| Revenue YoY | +14.0% | −22.6% | +8.3% | +28.4% | +10.8% | +3.1% | +7.6% | −7.4% |
| Net income | -407.1 m | -78.7 m | -8.4 m | 26.0 m | 166.9 m | -30.4 m | 73.7 m | 35.4 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | +541.1% | −118.2% | unavailable | −52.0% |
| Diluted EPS | -8.63 | -1.66 | -0.17 | 0.49 | 2.71 | -0.56 | 1.23 | 0.59 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | +453.1% | −120.7% | unavailable | −52.0% |
| net % | -75.1% | -18.8% | -1.8% | 4.5% | 25.8% | -4.6% | 10.3% | 5.3% |
| Free cash flow | -50.4 m | -18.3 m | 36.2 m | 27.1 m | 83.9 m | 33.7 m | 45.7 m | 53.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 163.5 m USD
- Financial debt
- 226.0 m USD
- Net debt
- 62.5 m USD
- Equity
- 885.5 m USD
- Total assets
- 1.3 bn USD
- Debt / equity
- 0.26x
- Current ratio
- 4.75x
- ROE
- 4.3%
- ROA
- 2.7%
- FCF margin
- 8.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 454.2 m | 583.3 m | 646.1 m | 666.4 m | 717.3 m | 664.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 259.9 m | 341.0 m | 383.0 m | 381.4 m | 413.3 m | 398.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 194.3 m | 242.3 m | 263.1 m | 285.1 m | 304.0 m | 265.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 79.0 m | 88.7 m | 103.6 m | 112.9 m | 124.5 m | 119.6 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 76.3 m | 84.5 m | 89.0 m | 92.8 m | 99.7 m | 98.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 22.6 m | 56.7 m | 60.3 m | 69.9 m | 67.0 m | 35.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 30.7 m | 26.1 m | 25.6 m | 25.0 m | 25.1 m | 20.0 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 53.3 m ≈ | 82.8 m ≈ | 85.9 m ≈ | 94.9 m ≈ | 92.1 m ≈ | 55.7 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 24.7 m | 28.4 m | 11.5 m | 11.8 m | 11.0 m | 9.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | -8.5 m | 25.7 m | 51.0 m | -28.3 m | 68.8 m | 39.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | -73.0 k | -358.0 k | -116.0 m | 2.0 m | -4.9 m | 4.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | -8.4 m | 26.0 m | 166.9 m | -30.4 m | 73.7 m | 35.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | -0.17 | 0.49 | 2.71 | -0.56 | 1.23 | 0.59 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 48.4 m | 53.6 m | 65.6 m | 53.8 m | 61.6 m | 60.6 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 129.6 m | 119.7 m | 154.9 m | 158.8 m | 145.6 m | 163.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 80.0 m | 109.6 m | 124.2 m | 103.0 m | 96.8 m | 110.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 145.9 m | 170.9 m | 206.9 m | 237.6 m | 246.7 m | 275.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 586.9 m | 549.4 m | 668.9 m | 706.3 m | 764.5 m | 845.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 65.3 m | 99.7 m | 107.3 m | 118.5 m | 113.8 m | 108.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 181.9 m | 181.9 m | 181.9 m | 215.0 m | 215.0 m | 215.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 46.2 m | 33.9 m | 23.9 m | 43.9 m | 8.8 m | 5.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 898.1 m | 899.0 m | 1.1 bn | 1.2 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 33.7 m | 44.5 m | 52.0 m | 42.4 m | 43.5 m | 55.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | — | — | 20.2 m | — | 26.5 m | — | SEC (XBRL)· 14 Feb 2025verified |
| Long-term debt | 321.1 m | 229.4 m | 254.5 m | 274.9 m | 249.7 m | 226.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 146.7 m | 189.2 m | 257.9 m | 218.0 m | 192.3 m | 178.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 489.7 m | 461.3 m | 550.4 m | 556.6 m | 480.8 m | 440.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 408.4 m † | 437.6 m † | 577.8 m † | 672.4 m † | 770.8 m † | 885.5 m † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 43.0 m | 67.7 m | 108.5 m | 61.7 m | 63.8 m | 69.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 6.8 m | 40.6 m | 24.6 m | 27.9 m | 18.1 m | 16.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 36.2 m ≈ | 27.1 m ≈ | 83.9 m ≈ | 33.7 m ≈ | 45.7 m ≈ | 53.3 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -71.8 m | 44.5 m | -68.9 m | -53.3 m | -64.5 m | -41.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | 29.1 m | -122.0 m | -4.6 m | -4.7 m | -12.6 m | -10.5 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 35 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 2.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Quality52
- Balance sheet73
- Valuation13
- Growth4
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.07 – 29.52 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)19.04 – 29.52 (Mid 23.08)WACC 9.0% · starting FCFF 93.7 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 25.0%
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E7.07 – 13.00 (Mid 10.54)8 companies used · median multiple 29.4x · quartiles 19.7x – 36.3xACLS, ACMR, ASYS, CRCT, CVV, ERII, LRCX, SOTK
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 35/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 2.0% | 40 (vs peers) | 12% |
| Net margin · Quality | 3.4% | 25 (vs peers) | 7% |
| FCF conversion · Quality | 366.4% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 0.9% | 8 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -39.8% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.3x | 100 (on a fixed band) | 12% |
| Interest coverage · Balance sheet | 2.1x | 10 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 3.9x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 108.5x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 62.5x | 0 (on a fixed band) | 12% |
| FCF yield · Valuation | 3.6% | 45 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet73/100 · 3/3 factors with a value
- Growth4/100 · 2/2 factors with a value
- Quality52/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation13/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
VEECO INSTRUMENTS INC (VECO). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 664.3 m USD in 2025; YoY growth -7.4%; net margin 3.4%; ROE 2.6%; net debt/EBITDA 0.3x.
The estimated value range is 13.06–21.26 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 16.81 USD, the price of 38.87 USD leaves a potential of -56.8% (value / price − 1) and a margin of safety of -131.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 35/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 366.4%
- Net debt / EBITDA: 0.3x
- Current ratio: 3.9x
What contradicts it
- Net margin: 3.4%
- Revenue CAGR 3Y: 0.9%
- EPS CAGR 3Y: -39.8%
- Interest coverage: 2.1x
- P/E (TTM): 108.5x
- EV/EBITDA: 62.5x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Special Industry Machinery, NEC (SIC 3559) · same industry (4-digit SIC) · compared with 12 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LRCXLam Research Corporation | 298.7 bn | 35.6 | 70.1% | 32.3% | +26.0% | +52% / +306% |
| ACLSAxcelis Technologies Inc | 3.1 bn | 33.5 | 8.9% | 10.7% | −17.6% | +26% / −22% |
| VECOVeeco Instruments Inc | 2.4 bn | 108.5 | 2.6% | 3.4% | −7.4% | +33% / +62% |
| AZTAAzenta, Inc. | 1.7 bn | — | -7.7% | -20.0% | +3.6% | +29% / −14% |
| CRCTCricut, Inc. | 1.3 bn | 14.3 | 25.9% | 12.7% | −0.5% | +15% / −29% |
| ACMRACM Research, Inc. | 644.6 m | 21.5 | 10.6% | 14.5% | +15.2% | +10% / +234% |
| ERIIEnergy Recovery, Inc. | 355.3 m | 25.3 | 8.6% | 12.7% | −6.9% | −59% / −54% |
| ASYSAmtech Systems, Inc. | 223.2 m | 48.2 | 4.8% | 4.9% | −21.6% | +61% / +78% |
| VELOVelo3D, Inc. | 210.9 m | — | -61.5% | -89.6% | +12.1% | +18% / −99% |
| SOTKSono Tek Corp | 75.8 m | 38.4 | 10.1% | 9.3% | +2.0% | +6% / −4% |
| TRTTrio-Tech International | 50.6 m | — | -0.1% | -0.1% | +71.6% | +32% / +43% |
| CVVCvd Equipment Corporation | 27.2 m | 2.7 | 32.7% | 62.0% | −4.1% | +0% / −32% |
| ASMLAsml Holding NV | — | — | 50.5% | 29.4% | +15.6% | +48% / +162% |
1- and 3-year price returns: for VECO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 23.51 Total return -40% · Per year -40% | 41.64 Total return 7% · Per year 7% | 62.82 Total return 62% · Per year 62% |
| 3 years | 21.21 Total return -45% · Per year -18% | 42.41 Total return 9% · Per year 3% | 70.49 Total return 81% · Per year 22% |
| 5 years | 19.13 Total return -51% · Per year -13% | 43.21 Total return 11% · Per year 2% | 79.09 Total return 103% · Per year 15% |
- Exit P/E± 10.60
- Net margin± 7.42
- Annual revenue growth± 6.31
- Annual dilution± 0.62
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Veeco Instruments makes semiconductor process equipment based on ion beam, laser annealing, MOCVD and single wafer wet processing technologies. In fiscal 2025 the company reported net sales of 664.3 million USD, with semiconductors making up 72% of total company revenue, and in the second quarter of 2026 sales rose year over year on demand linked to artificial intelligence. The pending merger with Axcelis, still awaiting approvals, puts the company's profile in transition.
SWOT
Strengths
- The company holds a strong technology position in laser annealing and ion beam deposition, and semiconductors make up a high share of its revenue.
- A portfolio of roughly three hundred and fifty patents and long-standing relationships with leading customers support its competitive position.
- Order growth in the second half of the year and the visibility it gives provide the company with planning advantages.
Weaknesses
- Dependence on a small number of principal customers could affect results if they reduce orders or change plans.
- Revenue fell in fiscal 2025 from the prior year, and the data storage segment suffered a sharp decline.
- Gross margins fell due to product mix, production costs and tariffs, which limits profitability.
Opportunities
- Demand linked to artificial intelligence, HBM memory and advanced packaging could expand the company's addressable market.
- Nanosecond annealing and EUV mask technologies could open new revenue sources with logic and memory customers.
- Completing the merger with Axcelis, if it takes place, could create a larger entity with expanded research and sales resources.
Threats
- Export restrictions and trade policies of the United States and China could limit access to the Chinese market, where the company has had significant sales.
- Government-backed competitors, especially in China, could reduce the company's market share over the longer term.
- Cyclical markets can cause sudden drops in orders, which could affect the company's investment plans.
Risks
- Failure to complete the Axcelis mergerhigh
The merger depends on regulatory approvals, including in China. If it is not completed on time or at all, the company's share price and business plans could be affected.
- Export restrictionshigh
US rules could prevent deliveries to certain Chinese customers, which could lead to delays, refunds and disputes.
- Customer concentrationmedium
A small number of principal customers account for a significant share of sales. Losing one of them could materially affect results.
- Industry cyclicalitymedium
Demand for semiconductor equipment varies with customer investment, and an industry slowdown could quickly reduce orders.
- Cybersecurity and intellectual propertylow
Cyberattacks or data breaches could disrupt operations and expose the company's proprietary technology.
Investment thesis
What would need to be true (bull case)
- Demand linked to artificial intelligence could keep growing, and orders in the second half of 2026 could support revenue growth.
- The company's technology position in laser annealing and advanced packaging could allow it to win share in new chip generations.
- Growth in compound semiconductor revenue and visibility into 2027 could reduce uncertainty for investors over the medium term.
What would break the thesis
- If export restrictions tighten, sales to China could decline further and margins could come under pressure.
- The Axcelis merger could be delayed or fail, leaving the company without the strategic framework it is currently pursuing.
- Industry cyclicality and the decline in 2025 show that revenue can fluctuate significantly, especially in data storage.
What to watch
- Revised fiscal 2026 revenue guidance and whether the range is achievedQ4 2026
- Status of Chinese regulatory approval for the Axcelis merger2026
- Development of data storage and compound semiconductor orders in the second half of the yearQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Veeco, headquartered in Plainview, New York, is a manufacturer of advanced semiconductor process equipment that solves materials engineering problems for its customers. Its portfolio includes ion beam, laser annealing, MOCVD, CVD, advanced packaging lithography, single wafer wet processing, MBE and ALD technologies. Customers include integrated device manufacturers, foundries, outsourced assembly and test companies, hard disk drive makers and research institutions. The company has sales and service operations in Asia-Pacific, Europe and North America, and most of its sales go to customers outside the United States.
Segments
Semiconductor
This is the largest segment and includes laser annealing, ion beam deposition for EUV mask blanks, and advanced packaging. Sales in fiscal 2025 rose slightly, and in the second quarter of 2026 they rose year over year on demand from leading-edge logic and memory customers.
Compound Semiconductor
It covers MOCVD, MBE and wet processing for power electronics, photonics and RF filters. Sales in fiscal 2025 declined, but order activity in the second half of 2025 and growth in the second quarter of 2026 point to a recovery linked to AI data center infrastructure.
Data Storage
This segment serves the manufacture of magnetic heads for hard disk drives. Sales in fiscal 2025 fell sharply from the prior year, but orders tied to AI and cloud data centers could support a recovery, especially in the second half of 2026.
Market context
The semiconductor industry grew in 2025, and analysts forecast long-term growth driven by artificial intelligence, high-performance computing and automotive electrification. According to the company, wafer fab equipment spending could grow in step with this expansion. Competition is also shaped by export restrictions and trade policies between the United States and China, which could slow sales in that region.
Sales of semiconductor equipment are cyclical and depend on customers' investment in new chip and memory generations. If demand linked to artificial intelligence holds, advanced packaging and memory could become important drivers of growth for the company.
Trends
- Demand for artificial intelligencetailwind
Investment in artificial intelligence, HBM memory and advanced packaging has raised orders, and the company expects order growth in the second half of the year.
- Export restrictions and trade tensionsheadwind
US export rules and China's retaliation could limit sales to customers in China and delay shipments, which affects revenue from that region.
- Shift to new device nodestailwind
Shrinking geometries and three-dimensional transistor architectures raise process complexity, which could favour the company's annealing and deposition equipment.
- Tariff and material cost pressuremixed
Tariffs could raise production costs and reduce margins if they cannot be fully passed on to customers, so margin trends are worth monitoring.
Competitive position
Veeco competes with established manufacturers and smaller firms in each of its markets, and some competitors have greater financial and engineering resources. Customers choose tools based on system performance, accuracy, reliability, cost of ownership and technical service. The company also notes that some Chinese competitors receive government support, which could increase competitive pressure.
No single competitor covers the company's full product range, so its position differs by segment. This fragmentation may ease competitive pressure on some product lines but requires continued investment in research and development.
- Applied MaterialsAMAT
Large competitor with a broad range of semiconductor equipment, cited in the annual report among principal competitors.
- Aixtron
Maker of MOCVD equipment for compound semiconductors, competing directly in that segment.
- Canon
Competitor active in lithography and manufacturing equipment, cited among principal competitors.
- Suss MicroTec
Supplier of lithography and wet processing equipment competing in advanced packaging.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Veeco Instruments (VECO): Results Far Exceed Expectations Amid Memory Capacity BoomYahoo Finance — News · 21 Sept 2026 · EN
SEC filings
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report07 May 2026Shareholder vote
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
- Proxy statement19 Mar 2026
- Annual report25 Feb 2026
- Current report25 Feb 2026Results of operations · Financial statements and exhibits
- Current report06 Feb 2026Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
- Current report02 Feb 2026Other events
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Veeco Instruments Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Veeco Instruments Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Veeco Instruments Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.