Axcelis Q1 Revenue Rises 3% to $199M, Non-GAAP EPS $0.72
Axcelis reported Q1 revenue of $198.96 million, up 3.3% year-over-year, with non-GAAP EPS of $0.72 versus $1.06 a year earlier. GAAP gross margin fell to 40.5% and memory bookings in DRAM and HBM drove sequential growth as the company guides Q2 revenue around $205 million.
1. Q1 Financial Results
Axcelis delivered Q1 revenue of $198.96 million, a 3.3% increase from $192.56 million in Q1 2025. GAAP gross margin declined to 40.5% (from 46.1%), GAAP operating margin fell to 4.0%, and GAAP EPS dropped to $0.30 versus $0.88 last year. Non-GAAP gross margin was 40.7%, non-GAAP operating margin 11.7%, and non-GAAP EPS $0.72.
2. Business Drivers
The memory segment, led by DRAM and high-bandwidth memory (HBM), drove sequential revenue growth, while the compound semiconductors & ion implantation (CS&I) business continued to expand its installed base. Management highlighted strong customer engagement across power, memory and mature markets, with memory showing the most momentum off a robust Q4 2025 exit.
3. Balance Sheet and Cash Flow
Axcelis ended Q1 with approximately $570 million in cash and equivalents and generated attractive free cash flow, supporting its capital allocation strategy. The strong balance sheet provides flexibility to fund R&D and target strategic investments.
4. Outlook and Merger
For Q2, Axcelis forecasts revenue of about $205 million, GAAP EPS of $0.57 and non-GAAP EPS of $0.90. The company expects full-year 2026 revenue to be flat with 2025, exiting the year with increased momentum, and anticipates closing its merger with Veeco Instruments in the second half of 2026.