ACM Research reported strong third-quarter growth, with revenue up 37% year over year and shipments up 31%, and raised its 2026 revenue outlook to above the top of its previous range. The semiconductor-equipment maker cited demand for electroplating and advanced-packaging tools, alongside a return to growth in its cleaning business.
The quarter showed a sharp difference between GAAP and adjusted profit: GAAP net income attributable to ACM fell to $1.5 million from $35.9 million a year earlier, while non-GAAP net income rose to $40.5 million from $28.4 million. The company’s non-GAAP measures exclude stock-based compensation and, for net income and earnings per share, unrealized gains on short-term investments.
Key details
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Revenue and shipments grew: Third-quarter revenue was $367.7 million, up from $269.2 million in the same period last year. Shipments increased 31% year over year.
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Margins edged lower: GAAP gross margin was 41.5%, compared with 42.0% a year earlier. Non-GAAP gross margin was 41.6%, versus 42.1%.
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Operating income increased: GAAP operating income rose to $55.5 million from $28.9 million. Non-GAAP operating income was $66.2 million, up from $36.5 million.
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Adjusted earnings improved, while GAAP earnings fell: GAAP diluted earnings per share were $0.02, down from $0.52. Non-GAAP diluted EPS rose to $0.55 from $0.41. The company’s adjusted figures exclude stock-based compensation and unrealized gains on short-term investments; those adjustments help explain why the reported and adjusted profit comparisons differ substantially.
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Growth extended through the first nine months: Revenue for the nine months ended Sept. 30 reached $891.9 million, up from $656.9 million. GAAP operating income increased to $141.4 million from $86.4 million, while non-GAAP operating income rose to $164.4 million from $113.5 million. GAAP net income attributable to ACM was $107.8 million, compared with $86.0 million; non-GAAP net income was $109.3 million, versus $96.8 million.
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The company raised its revenue outlook: ACM now expects 2026 revenue to exceed the upper end of its prior range. It did not provide a revised numerical target in the announcement.
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Manufacturing capacity is set to expand: The second building at ACM’s Lingang manufacturing facility is expected to come online in the fourth quarter, doubling the facility’s manufacturing floor space.
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New products and a customer shipment mark progress in advanced packaging: ACM introduced an enhanced single-wafer hot SPM cleaning system with sulfuric-acid recycling in October. It also shipped its first 310-by-310-millimeter Ultra ECP ap-p panel-level horizontal electroplating production tool to an Asian customer. The company linked the opportunity to demand for larger AI chips and increasingly complex 2.5D and 3D packaging.
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The company is building out its international operations: ACM said customer engagements and equipment installations are growing outside mainland China. It is investing in global sales, engineering and customer support, expanding capabilities in Asia, and continuing investment in its Oregon operations facility.
Plain-English implications
ACM’s results point to strong sales growth and improving adjusted profitability, even as gross margins were slightly lower and GAAP net income was sharply down for the quarter. The planned Lingang expansion and investments in overseas support are intended to increase capacity and serve a broader base of customers.