Axcelis Q3 2025 Earnings Revenue Beats Estimates, Net Income Falls 46.5%

Axcelis Technologies reported Q3 2025 results with revenue of $213.61 million, , . The stock edged lower in the latest session, reflecting mixed market sentiment despite beating revenue estimates. The company announced a merger with Veeco Instruments, positioning for growth in AI and electrification sectors.

Revenue

Axcelis Technologies’ Q3 2025 revenue totaled $213.61 million, . This marked a 16.7% decline from $256.56 million in the prior-year period. The shortfall was attributed to reduced sales in China and weaker demand in power and general mature markets.

Earnings/Net Income

The company’s EPS dropped 44.3% to $0.83 in Q3 2025, compared to $1.49 in Q3 2024. Net income fell to $25.99 million, a 46.5% decrease from $48.58 million a year ago. The significant declines in both EPS and net income indicate a challenging quarter for Axcelis, despite revenue outperforming expectations.

Post-Earnings Price Action Review

Following the earnings release, Axcelis shares fell 2.27% in the latest trading day but gained 0.37% for the week. The stock has declined 1.82% month-to-date, reflecting investor caution amid soft demand and margin pressures. The merger with Veeco and optimism about memory market recovery have partially offset near-term concerns.

CEO Commentary

, CEO, highlighted sequential improvements in memory bookings and long-term opportunities in adoption. He emphasized the merger with Veeco as a strategic catalyst for growth in AI and electrification, while acknowledging near-term challenges in China and general mature markets.

Guidance

Axcelis projected Q4 2025 revenue of approximately $215 million, with non-GAAP gross margins of 43%. The company anticipates a recovery in memory demand driven by DRAM and HBM investments in 2026.

Additional News

Axcelis announced a merger with Veeco Instruments, creating a leading semiconductor equipment company with cross-sell synergies in AI and electrification. The CEO emphasized silicon carbide’s role in electric vehicles and industrial applications, with expectations for broader adoption as costs decline. Additionally, the company expressed cautious optimism about the memory market’s potential rebound in 2026, citing increased DRAM and HBM demand.

The merger with Veeco is expected to enhance Axcelis’ market presence and technological capabilities, while strategic investments in silicon carbide position the company for long-term growth.