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ACMR Q3 Earnings Call Highlights Raised Outlook and Backlog Growth
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Key Takeaways
ACMR raises its 2026 revenue guidance to $1.24B-$1.28B after Q3 sales jump 36.6% to $367.7M.
ACM Research's backlog surges 88% to $2.5B, while orders climb 147% in the first nine months of 2026.
ACMR posts adjusted EPS of 55 cents, but GAAP EPS is 2 cents amid a $39.1M unrealized investment loss.
ACM Research, Inc. (ACMR - Free Report) raised its 2026 revenue outlook following strong third-quarter growth, supported by expanding demand for semiconductor processing equipment, new product adoption and a substantial increase in orders.
Management emphasized growing opportunities in cleaning technologies, advanced packaging and international markets while addressing gross margin pressure, manufacturing capacity and supply-chain challenges during the earnings call.
ACMR Raises 2026 Revenue Outlook
ACM Research raised its 2026 revenue guidance to $1.24-$1.28 billion, representing year-over-year growth of 38%-42%, compared with its previous forecast of $1.125-$1.175 billion.
CEO David Wang attributed the stronger outlook to substantial backlog, expanding customer demand and multiple product cycles. Management expects fourth-quarter shipments to exceed third-quarter levels, with full-year shipment growth outpacing revenue growth.
Third-quarter revenues increased 36.6% year over year to $367.7 million. Adjusted earnings were 55 cents per share compared with the Zacks Consensus Estimate of 51 cents. GAAP earnings were two cents per share, reflecting a $39.1 million unrealized investment loss.
ACM Research, Inc. Price, Consensus and EPS Surprise
Wang reported a backlog of $2.5 billion as of Sept. 29, 2026, representing an 88% year-over-year increase. Orders during the first nine months increased 147%.
Management highlighted continued investment in China's semiconductor manufacturing capacity, alongside market share gains and demand for differentiated processing technologies.
During the analyst discussion, CFO Mark McKechnie said ACM was growing faster than the Chinese wafer fabrication equipment market across orders, shipments and revenues. However, management did not quantify the respective contributions from overall market expansion and market share gains.
ACMR Sees Expanding Cleaning Equipment Opportunities
Cleaning equipment revenues increased 16.1% to $210.7 million, representing 57.3% of quarterly sales. Management highlighted broader adoption of single-wafer sulfuric peroxide mixture (SPM) cleaning systems.
Wang reiterated expectations to ship more than 20 single-wafer SPM tools across multiple customers during 2026. The company continues targeting a 60% long-term share of China's cleaning equipment market.
ACM also introduced an enhanced SPM system capable of recycling 70% of sulfuric acid, potentially reducing annual chemical consumption by approximately 400 tons per tool. Management expects differentiated cleaning technologies to support further customer adoption.
ACM's Advanced Packaging Portfolio Gains Momentum
Revenues from electrochemical plating (ECP), furnace and other technologies increased 82.9% to $109.5 million, reflecting stronger demand across front-end manufacturing and advanced packaging.
Advanced packaging revenues excluding ECP, including services and spares, rose 71.2% to $47.5 million. Management highlighted the October shipment of a 310×310-millimeter horizontal panel-level electroplating production system to an Asian customer.
Wang expects furnace equipment to contribute more meaningfully in 2027 as customer qualifications progress. Track and PECVD platforms are also advancing through customer evaluations, with additional shipments anticipated next year.
ACMR Expands Its International Manufacturing Footprint
Management highlighted progress in establishing operations beyond mainland China, including preparations for its Oregon facility and expanded engineering and customer support capabilities across Asia.
Wang expects more than 20 tools to be installed outside mainland China by year-end 2026, serving approximately 10 customers across five countries.
Meanwhile, ACM's second Lingang manufacturing building is ramping production. Both buildings together can support annual output of up to $3 billion, providing capacity for anticipated shipment growth.
ACM Addresses Margins and Supply-Chain Constraints
During the Q&A session, a Daiwa Securities analyst questioned gross margin volatility and inventory provisions. McKechnie explained that product mix and foreign exchange had greater impacts than inventory provisions, which remained within normal levels.
Non-GAAP gross margin declined to 41.6% from 42.1% a year earlier. Management anticipates modest sequential improvement in the fourth quarter while maintaining its long-term target range of 42-48%.
A ROTH Capital Partners analyst also questioned supply constraints. Wang described longer supplier forecasts and additional sourcing arrangements intended to support rising production requirements.
ACM's Management Maintains Its Expansion Focus
Management remained focused on converting backlog into shipments, commercializing newer equipment platforms and expanding international customer adoption.
The company also reiterated its long-term $4 billion revenue objective, supported by manufacturing investments and a broader semiconductor equipment portfolio.
Zacks Rank and Style Scores for ACMR
ACM Research currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Value and Growth Scores of D indicate relatively weaker characteristics in those investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock carries a Momentum Score of B, reflecting comparatively favorable momentum characteristics, while its VGM Score of D indicates weaker combined value, growth and momentum attributes. The Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
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ACMR Q3 Earnings Call Highlights Raised Outlook and Backlog Growth
Key Takeaways
ACM Research, Inc. (ACMR - Free Report) raised its 2026 revenue outlook following strong third-quarter growth, supported by expanding demand for semiconductor processing equipment, new product adoption and a substantial increase in orders.
Management emphasized growing opportunities in cleaning technologies, advanced packaging and international markets while addressing gross margin pressure, manufacturing capacity and supply-chain challenges during the earnings call.
ACMR Raises 2026 Revenue Outlook
ACM Research raised its 2026 revenue guidance to $1.24-$1.28 billion, representing year-over-year growth of 38%-42%, compared with its previous forecast of $1.125-$1.175 billion.
CEO David Wang attributed the stronger outlook to substantial backlog, expanding customer demand and multiple product cycles. Management expects fourth-quarter shipments to exceed third-quarter levels, with full-year shipment growth outpacing revenue growth.
Third-quarter revenues increased 36.6% year over year to $367.7 million. Adjusted earnings were 55 cents per share compared with the Zacks Consensus Estimate of 51 cents. GAAP earnings were two cents per share, reflecting a $39.1 million unrealized investment loss.
ACM Research, Inc. Price, Consensus and EPS Surprise
ACM Research, Inc. price-consensus-eps-surprise-chart | ACM Research, Inc. Quote
ACM's Backlog Signals Sustained Equipment Demand
Wang reported a backlog of $2.5 billion as of Sept. 29, 2026, representing an 88% year-over-year increase. Orders during the first nine months increased 147%.
Management highlighted continued investment in China's semiconductor manufacturing capacity, alongside market share gains and demand for differentiated processing technologies.
During the analyst discussion, CFO Mark McKechnie said ACM was growing faster than the Chinese wafer fabrication equipment market across orders, shipments and revenues. However, management did not quantify the respective contributions from overall market expansion and market share gains.
ACMR Sees Expanding Cleaning Equipment Opportunities
Cleaning equipment revenues increased 16.1% to $210.7 million, representing 57.3% of quarterly sales. Management highlighted broader adoption of single-wafer sulfuric peroxide mixture (SPM) cleaning systems.
Wang reiterated expectations to ship more than 20 single-wafer SPM tools across multiple customers during 2026. The company continues targeting a 60% long-term share of China's cleaning equipment market.
ACM also introduced an enhanced SPM system capable of recycling 70% of sulfuric acid, potentially reducing annual chemical consumption by approximately 400 tons per tool. Management expects differentiated cleaning technologies to support further customer adoption.
ACM's Advanced Packaging Portfolio Gains Momentum
Revenues from electrochemical plating (ECP), furnace and other technologies increased 82.9% to $109.5 million, reflecting stronger demand across front-end manufacturing and advanced packaging.
Advanced packaging revenues excluding ECP, including services and spares, rose 71.2% to $47.5 million. Management highlighted the October shipment of a 310×310-millimeter horizontal panel-level electroplating production system to an Asian customer.
Wang expects furnace equipment to contribute more meaningfully in 2027 as customer qualifications progress. Track and PECVD platforms are also advancing through customer evaluations, with additional shipments anticipated next year.
ACMR Expands Its International Manufacturing Footprint
Management highlighted progress in establishing operations beyond mainland China, including preparations for its Oregon facility and expanded engineering and customer support capabilities across Asia.
Wang expects more than 20 tools to be installed outside mainland China by year-end 2026, serving approximately 10 customers across five countries.
Meanwhile, ACM's second Lingang manufacturing building is ramping production. Both buildings together can support annual output of up to $3 billion, providing capacity for anticipated shipment growth.
ACM Addresses Margins and Supply-Chain Constraints
During the Q&A session, a Daiwa Securities analyst questioned gross margin volatility and inventory provisions. McKechnie explained that product mix and foreign exchange had greater impacts than inventory provisions, which remained within normal levels.
Non-GAAP gross margin declined to 41.6% from 42.1% a year earlier. Management anticipates modest sequential improvement in the fourth quarter while maintaining its long-term target range of 42-48%.
A ROTH Capital Partners analyst also questioned supply constraints. Wang described longer supplier forecasts and additional sourcing arrangements intended to support rising production requirements.
ACM's Management Maintains Its Expansion Focus
Management remained focused on converting backlog into shipments, commercializing newer equipment platforms and expanding international customer adoption.
The company also reiterated its long-term $4 billion revenue objective, supported by manufacturing investments and a broader semiconductor equipment portfolio.
Zacks Rank and Style Scores for ACMR
ACM Research currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Value and Growth Scores of D indicate relatively weaker characteristics in those investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock carries a Momentum Score of B, reflecting comparatively favorable momentum characteristics, while its VGM Score of D indicates weaker combined value, growth and momentum attributes. The Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results.