Axcelis Technologies 2025 Q3 Earnings Misses Expectations as Net Income Declines 46.5%

, , . Despite beating Zacks’ estimates for both revenue and EPS, the results reflected a challenging market environment. The company guided Q4 revenue to $215 million, .

Revenue

The company’s revenue decline was driven by weaker China sales (46% of total revenue) and softer power/general mature segments. Customer Support & , bolstered by strong demand for spares and services, while system installations faced lower-margin pressures. Revenue outside China, including the U.S. (14%) and Korea (10%), showed resilience.

Earnings/Net Income

Net income dropped to $25.99 million in Q3 2025, . , below expectations, due to product mix and low-margin installations. Despite strong CS&I performance, EPS and net income both declined year-over-year.

Post-Earnings Price Action Review

Axcelis shares surged 7.58% pre-market after beating Q3 estimates, though the stock has since dipped 2.27% in the latest trading day. . However, , . , creating the fourth-largest U.S. wafer-fab equipment supplier, is expected to enhance market position. Despite a 14% October decline, shares rebounded post-earnings, . , .

CEO Commentary

, CEO, highlighted Axcelis’ disciplined execution in navigating cyclical digestion, emphasizing strength in silicon carbide adoption and CS&I growth. He noted sequential booking improvements and optimism about 2026 memory demand driven by DRAM and HBM. “We’re well-positioned to capitalize on secular growth in electrification and AI,” Lowe stated.

Guidance

. , with Q4 remaining stable.

Additional News

The merger with Veeco Instruments, announced October 1, , enhancing capabilities in silicon carbide and compound semiconductors. The all-stock deal is expected to strengthen Axcelis’ position in AI and electrification markets.

Key Takeaways

Axcelis’ Q3 results underscored resilience in CS&I and strategic growth in , offset by broader market headwinds. The Veeco merger positions the company to leverage AI and electrification trends, though near-term revenue declines and margin pressures persist. Investors remain cautiously optimistic, .