ACMR Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

ACM Research's Product Portfolio Drives Revenue Growth

ACM Research's quarterly performance was led by strong growth across its ECP and advanced packaging businesses. Revenues from ECP, furnace and other technologies surged 167.7% year over year to $128.5 million, accounting for 43.9% of total sales. Advanced packaging revenues, excluding ECP but including services and spares, increased 153.3% to $31.4 million, representing 10.7% of sales.

The company's cleaning business generated $133 million of revenues, which declined 14.2% year over year and accounted for 45.4% of sales. Management noted that newer SPM products contributed little revenue during the quarter, as shipments typically precede revenue recognition following customer acceptance.

ACM Research shipped its 2,000th electroplating chamber during the quarter, following its 500th chamber milestone in 2022 and 1,500th in 2025. Management said the milestone reflects growing adoption of its ECP technology in high-volume logic, memory and 3D packaging applications.

ACM Research's Profitability Improves

ACM Research's non-GAAP gross margin was also 46% versus 48.7% a year ago. Despite the year-over-year decline, gross margin remained above the midpoint of the company's long-term 42-48% target range.

ACMR’s non-GAAP operating income rose 35.8% to $56.3 million, with non-GAAP operating margin at 19.2%.

Orders and New Products Strengthen Growth Outlook

ACM Research's order activity provides additional support for its growth outlook. Management said first-half 2026 orders increased 105% year over year, with growth spanning all product categories and a heavier emphasis on newer products.

The company also received a production order for a 510 × 515 mm Ultra ECP ap-p tool from an existing advanced packaging customer in mainland China and an evaluation order for a 310 × 310 mm tool from a new leading panel-manufacturer customer in Asia.

Management expects newer platforms, including Track, PECVD and horizontal panel-level plating, to progress from evaluation toward commercialization, potentially supporting production orders and growth over the coming years.

ACM Research also expanded its Ultra C Tahoe wet-processing platform by adding wet etch and monitor-wafer reclaim applications. The company said the expanded platform has been adopted by leading semiconductor manufacturers, with the Tahoe Recycle application already running in volume production at customer facilities.

ACM Research’s Balance Sheet

ACM Research ended the quarter with $1.36 billion in cash, cash equivalents, restricted cash and short-term time deposits compared with $1.25 billion as of March 31, 2026.

ACM Research Raises 2026 Revenue Guidance

ACM Research raised its fiscal 2026 revenue guidance to $1.125-$1.175 billion compared with its previous range of $1.08-$1.175 billion. The new range implies 25-30% year-over-year revenue growth. Management also expects shipment growth to outpace revenue growth in 2026.

Management described 2026 as a “Big Year” for new products, with customer evaluations and product ramps underway across SPM cleaning, Track, PECVD and horizontal panel-level plating. The company is also expanding its engagement with global customers and expects its Oregon facility to open in the fourth quarter of 2026.

Zacks Rank and Stocks to Consider

At present, ACMR carries Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Lumentum have surged 141.5% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year.

Shares of Applied Materials have jumped 109.8% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past seven days, indicating a rise of 29.2% year over year.

Analog Devices shares have surged 43.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 33.9% year over year.

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