Veeco InstrumentsVECO -6.06%56 Gross Margin % is 35.26% as of Mar. 2026, which is 13% below its 10-year median of 40.43. GuruFocus rates VECO with a GF Score™ of 56/100 and a GF Value™ of $29.86 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,009 Semiconductors companies, Veeco Instruments ranks better than 66.8% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Veeco Instruments had a gross margin of 35.26% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Veeco Instruments Gross Margin % Related Terms
Veeco Instruments Gross Margin % Historical Data
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The historical data trend for Veeco Instruments's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VECO vs UCTT, AMBA, AEHR: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Veeco Instruments's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Veeco Instruments Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Veeco Instruments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Veeco Instruments's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Veeco Instruments (VECO) has a Gross Margin % of 35.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Veeco Instruments and its competitors. This is 13% below median its historical median of 40.43. Over the past decade, Veeco Instruments' Gross Margin % has ranged from 35.74 to 42.78. According to the industry distribution chart, Veeco Instruments ranks #335 out of 1009 companies in the Semiconductors industry, placing it in the top 33.2%.
Is Veeco Instruments' Gross Margin % too high?
Veeco Instruments' current Gross Margin % of 35.26% is 13% below median its 10-year median of 40.43. Over the past 10 years, this metric has ranged from a low of 35.74 to a high of 42.78. The Semiconductors industry median Gross Margin % is 29.61. Veeco Instruments' value of 35.26% is 19.1% above this industry median. Based on the distribution chart, Veeco Instruments ranks #335 out of 1009 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Veeco Instruments has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Veeco Instruments' Gross Margin % compare to UCTT and AMBA?
According to the Semiconductors industry distribution chart, Veeco Instruments ranks #335 out of 1009 companies for Gross Margin %. This puts Veeco Instruments in the upper half of its industry. The industry median Gross Margin % is 29.61. Veeco Instruments' value of 35.26% is 19.1% above this benchmark. Historically, Veeco Instruments' own Gross Margin % has ranged from 35.74 to 42.78 over the past decade. While the company's 10-year median is 40.43 vs. the industry median of 29.61, Veeco Instruments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Veeco Instruments's current Gross Margin % of 35.26% is 19.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Veeco Instruments and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veeco Instruments's current Gross Margin % is 35.26%, which is 13% below median its own 10-year median of 40.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veeco Instruments stock overvalued right now?
Based on GuruFocus' analysis, Veeco Instruments (VECO) is currently considered Significantly Overvalued. The stock's GF Value™ is $29.86, compared to a current price of $70.95 — trading 137.6% above its estimated fair value. The current Gross Margin % is 35.26%, which is 13% below median its 10-year median of 40.43 and 19.1% above the Semiconductors industry median of 29.61. Veeco Instruments' overall GF Score™ is 56/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Veeco Instruments (VECO), the current Gross Margin % is 35.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Veeco Instruments (VECO) Overvalued in 2026?
Based on GuruFocus' analysis, Veeco Instruments stock appears to be overvalued.
The current stock price of $70.95 is trading 137.6% above its estimated GF Value™ of $29.86.
GuruFocus considers Veeco Instruments to be Significantly Overvalued.
Key valuation signals for VECO:
Gross Margin %: 35.26% (13% below median its 10-year median of 40.43)
GF Value™: $29.86 vs. price of $70.95 (137.6% above fair value)
Industry Position: 19.1% above the Semiconductors median (#335 of 1009)
No single metric tells the full story. See the VECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Veeco Instruments Inc is a United States-based company engaged in designing, developing, and manufacturing thin-film process equipment, mainly used for producing electronic devices. The company focuses on semiconductor process equipment that addresses a range of challenging materials engineering problems for its customers. Its products include Laser Processing Systems, Lithography Systems, Ion Beam Systems, SiC CVD Systems, MOCVD Systems, Wet Processing Systems, MBE Technologies, Atomic Layer Deposition Systems, Physical Vapor Deposition Systems, Dicing and Lapping Systems, as well as Gas & Vapor Delivery Systems. The maximum of the company's revenue is generated from sales to the Semiconductor Industry and within China.
56GF Score
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