Veeco Instruments VECO is scheduled to release second-quarter 2026 results on Aug. 5.
The company expects second-quarter 2026 revenues between $170 million and $190 million. Non-GAAP earnings are expected in the 20-32 cents per share range.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $180 million, indicating growth of 8.37% from the figure reported in the year-ago quarter.
The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. The figure indicates a 27.78% decline from the year-ago quarter’s reported figure.
Veeco Instruments Inc. Price and EPS Surprise
Veeco Instruments Inc. price-eps-surprise | Veeco Instruments Inc. Quote
VECO beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missing the other two, delivering an average surprise of 14.55%.
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced VECO’s Q2 2026 Performance
Veeco Instruments’s second-quarter 2026 results are expected to have benefited from sustained investments in artificial intelligence (AI) and high-performance computing (HPC), which continue to drive demand for advanced semiconductor manufacturing equipment. Strong AI-driven demand from leading-edge semiconductor customers is expected to have supported top-line growth in the to-be-reported quarter. Continued investments in advanced logic, DRAM, high-bandwidth memory (HBM), advanced packaging and compound semiconductors are likely to have contributed to growth.
Top-line growth is expected to have benefited from robust demand for VECO’s LSA systems used in advanced logic and memory manufacturing. The company continues to strengthen its position with Tier 1 logic and DRAM customers while expanding opportunities in HBM. AI-driven investments are expected to have supported demand for VECO’s advanced packaging wet processing systems.
Momentum in silicon photonics is expected to have supported top-line growth in the to-be-reported quarter. Rising adoption of optical interconnects in AI data centers is driving demand for indium phosphide laser manufacturing equipment. Ongoing manufacturing capacity expansion across its advanced packaging and Ion Beam Deposition platforms is expected to have enhanced VECO’s ability to support growing customer demand and future deliveries.
However, the second-quarter 2026 results are likely to suffered from weaker demand in China’s mature-node semiconductor market, where investments in legacy 28-nanometer and 40-nanometer fabs continue to decline. U.S. export controls are expected to have remained a headwind in the to-be-reported quarter. During the first quarter, VECO was unable to ship a laser spike annealing system worth roughly $8 million after the Bureau of Industry and Security informed the company that the customer required an export license. Any continued licensing delays could have weighed on second-quarter shipments and profitability.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
VECO currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
NVIDIA NVDA has an Earnings ESP of +0.52% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 7.6% in the year-to-date period. NVDA is set to report second-quarter fiscal 2027 results on Aug. 26.
Analog Devices ADI has an Earnings ESP of +2.37% and a Zacks Rank #2 at present.
Analog Devices shares have gained 35.5% in the year-to-date period. ADI is scheduled to report its third-quarter fiscal 2026 results on Aug. 19.
Applied Materials AMAT has an Earnings ESP of +1.52% and a Zacks Rank #2.
Applied Materials shares have gained 97.5% in the year-to-date period. AMAT is set to report its third-quarter fiscal 2026 results on Aug. 13.
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This article originally published on Zacks Investment Research (zacks.com).