Veeco Instruments 2025 Q2 Earnings Misses Targets as Net Income Falls 21.5%

Veeco Instruments reported weaker-than-expected earnings for Q2 2025, with revenue and net income both declining year-over-year. The company lowered its revenue forecast for Q3 and highlighted mixed market conditions despite strong demand in semiconductor manufacturing.

Revenue
Veeco’s total revenue for Q2 2025 fell by 5.6% to $166.10 million, compared to $175.88 million in the same period the previous year. The semiconductor segment remained the largest contributor, generating $123.87 million, followed by the Scientific & Other segment with $15.68 million. The Compound Semiconductor and Data Storage segments contributed $14.20 million and $12.35 million, respectively, showing a mixed performance across different business units. The decline reflects broader industry challenges, despite robust demand in advanced packaging and EUV mask blanks.

Earnings/Net Income
Veeco’s earnings per share (EPS) declined 25.9% to $0.20 in Q2 2025, compared to $0.27 in Q2 2024. Net income also dropped 21.5% to $11.73 million, down from $14.94 million a year earlier. Despite a better performance under non-GAAP measures, the GAAP results indicate a challenging operating environment, with costs and expenses impacting profitability.

Price Action
The stock price of Veeco Instruments has edged up 0.96% during the latest trading day, has tumbled 8.32% during the most recent full trading week, and has dropped 3.34% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Veeco Instruments (VECO) shares after a revenue raise quarter-over-quarter on the financial report released date and holding for 30 days yielded poor performance over the past three years. The strategy's CAGR was -0.90%, with a total return of -2.66% and an excess return of -52.06%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.02%, indicating a low-risk but underperforming strategy relative to the benchmark.

CEO Commentary
Bill Miller, Ph.D., Veeco’s Chief Executive Officer, highlighted strong financial performance driven by the rapid expansion of High-Performance Computing and AI technologies. He attributed the results to increased shipments of wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks. The tone conveyed optimism regarding the company’s current trajectory and market dynamics.

Guidance
For Q3 2025, Veeco expects revenue in the range of $150 million to $170 million, with GAAP diluted earnings per share projected between $0.04 and $0.22 and Non-GAAP diluted earnings per share between $0.20 and $0.35.

Additional News
No significant mergers and acquisitions activity was reported for Veeco in the three weeks leading up to August 6, 2025. Additionally, there were no announced changes in C-level executive roles or major corporate restructuring initiatives during the same period. However, the company reaffirmed its strategic focus on High-Performance Computing and AI technologies, emphasizing its commitment to innovation and market leadership in semiconductor manufacturing. The guidance provided for Q3 2025 reflects a cautious approach amid ongoing industry headwinds, signaling a balanced outlook for both revenue and profitability.