We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ACM Research (ACMR - Free Report) delivered a strong first-quarter 2026 performance as rapid growth in its electrochemical plating (ECP) business and continued advanced packaging demand supported revenue growth and profitability.
ACM Research reported first-quarter 2026 earnings of 34 cents per share, surpassing the Zacks Consensus Estimate of 16 cents by 112.5%. Revenues increased 34.2% year over year to $231.3 million and beat the consensus estimate of $219 million.
The quarter reflected strong execution across the company’s semiconductor equipment portfolio, particularly in plating and advanced packaging applications. Total shipments increased 53.6% year over year to $240.7 million from $156.7 million in the first quarter of 2025, highlighting solid customer demand and expanding adoption across multiple product categories.
ACMR’s Q1 Top Line in Detail
A major driver of the quarter was the sharp acceleration in ACMR’s plating-related business. Revenues from ECP, furnace and other technologies surged 204.9% year over year to $84.2 million. The segment accounted for 36% of total revenues compared with 16% in the prior-year quarter.
ACM Research, Inc. Price, Consensus and EPS Surprise
Advanced packaging revenues, excluding ECP, along with services and spares, rose 62% year over year to $24.5 million and represented 11% of total sales. Management highlighted growing traction for panel-level horizontal plating solutions and broader customer engagement across both front-end semiconductor manufacturing and advanced packaging applications.
Cleaning revenues, which include single-wafer cleaning, Tahoe and semi-critical cleaning systems, totaled $122.5 million, down 5.5% year over year. The segment’s contribution to total revenues declined to 53% from 75% in the year-ago quarter. Management characterized the decline as primarily related to timing and product-cycle transitions rather than weakening demand conditions.
The company emphasized strong momentum for its single-wafer SPM tool line and expects to deliver more than 15-20 units by the end of 2026. Management pointed to increasing customer interest tied to favorable particle performance and uptime advantages. ACMR expects newer product cycles, including SPM and Tahoe-related opportunities, to contribute more significantly over the rest of 2026.
ACMR’ Q1 Operating Results
Non-GAAP gross margin was 46.5% compared with 48.2% in the prior-year quarter, remaining above the midpoint of management’s long-term target range of 42-48%.
Non-GAAP operating expenses increased 38.5% year over year to $65.8 million as ACMR continued investing across the business.
Despite higher operating expenses, non-GAAP operating income rose to $41.8 million from $35.6 million in the first quarter of 2025, resulting in an 18.1% operating margin.
Management noted that favorable product mix and lower inventory provision impacts supported margin recovery from the low-40% range experienced during the second half of 2025.
ACMR’s Balance Sheet & Cash Flow
As of March 31, 2026, cash, cash equivalents, restricted cash and short-term time deposits were $1.25 billion compared with $1.13 billion as of Dec. 31, 2025.
ACMR’s 2026 Outlook
Management reaffirmed its full-year 2026 revenue guidance of $1.08 billion to $1.175 billion.
The company stated that the outlook reflects current assumptions regarding international trade policy impacts, customer spending trends, supply-chain constraints and the timing of customer acceptance for first-tool evaluations.
Management emphasized that multiple growth opportunities are developing simultaneously across its cleaning, plating, furnace, track and PECVD platforms, which could support broader adoption over time.
View the Zacks #1 Rank List
Image: Bigstock
ACMR Q1 Earnings Beat Estimates on ECP Strength and Packaging Demand
Key Takeaways
ACM Research (ACMR - Free Report) delivered a strong first-quarter 2026 performance as rapid growth in its electrochemical plating (ECP) business and continued advanced packaging demand supported revenue growth and profitability.
ACM Research reported first-quarter 2026 earnings of 34 cents per share, surpassing the Zacks Consensus Estimate of 16 cents by 112.5%. Revenues increased 34.2% year over year to $231.3 million and beat the consensus estimate of $219 million.
The quarter reflected strong execution across the company’s semiconductor equipment portfolio, particularly in plating and advanced packaging applications. Total shipments increased 53.6% year over year to $240.7 million from $156.7 million in the first quarter of 2025, highlighting solid customer demand and expanding adoption across multiple product categories.
ACMR’s Q1 Top Line in Detail
A major driver of the quarter was the sharp acceleration in ACMR’s plating-related business. Revenues from ECP, furnace and other technologies surged 204.9% year over year to $84.2 million. The segment accounted for 36% of total revenues compared with 16% in the prior-year quarter.
ACM Research, Inc. Price, Consensus and EPS Surprise
ACM Research, Inc. price-consensus-eps-surprise-chart | ACM Research, Inc. Quote
Advanced packaging revenues, excluding ECP, along with services and spares, rose 62% year over year to $24.5 million and represented 11% of total sales. Management highlighted growing traction for panel-level horizontal plating solutions and broader customer engagement across both front-end semiconductor manufacturing and advanced packaging applications.
Cleaning revenues, which include single-wafer cleaning, Tahoe and semi-critical cleaning systems, totaled $122.5 million, down 5.5% year over year. The segment’s contribution to total revenues declined to 53% from 75% in the year-ago quarter. Management characterized the decline as primarily related to timing and product-cycle transitions rather than weakening demand conditions.
The company emphasized strong momentum for its single-wafer SPM tool line and expects to deliver more than 15-20 units by the end of 2026. Management pointed to increasing customer interest tied to favorable particle performance and uptime advantages. ACMR expects newer product cycles, including SPM and Tahoe-related opportunities, to contribute more significantly over the rest of 2026.
ACMR’ Q1 Operating Results
Non-GAAP gross margin was 46.5% compared with 48.2% in the prior-year quarter, remaining above the midpoint of management’s long-term target range of 42-48%.
Non-GAAP operating expenses increased 38.5% year over year to $65.8 million as ACMR continued investing across the business.
Despite higher operating expenses, non-GAAP operating income rose to $41.8 million from $35.6 million in the first quarter of 2025, resulting in an 18.1% operating margin.
Management noted that favorable product mix and lower inventory provision impacts supported margin recovery from the low-40% range experienced during the second half of 2025.
ACMR’s Balance Sheet & Cash Flow
As of March 31, 2026, cash, cash equivalents, restricted cash and short-term time deposits were $1.25 billion compared with $1.13 billion as of Dec. 31, 2025.
ACMR’s 2026 Outlook
Management reaffirmed its full-year 2026 revenue guidance of $1.08 billion to $1.175 billion.
The company stated that the outlook reflects current assumptions regarding international trade policy impacts, customer spending trends, supply-chain constraints and the timing of customer acceptance for first-tool evaluations.
Management emphasized that multiple growth opportunities are developing simultaneously across its cleaning, plating, furnace, track and PECVD platforms, which could support broader adoption over time.
ACMR's Zacks Rank & Stocks to Consider
ACMR currently carries a Zacks Rank #3 (Hold).
Box (BOX - Free Report) , Cisco Systems (CSCO - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. All the stocks presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Box have lost 14.2% in the year-to-date period. BOX is set to report its first-quarter fiscal 2027 results on May 26.
Cisco Systems shares have gained 19.6% in the year-to-date period. CSCO is scheduled to release third-quarter fiscal 2026 results on May 13.
Dell Technologies shares have surged 82.9% in the year-to-date period. DELL is set to report its first-quarter fiscal 2027 results on May 28.