Intevac Posts Record Quarterly Sales of $233.3 Million, Raises 2026 Forecast
Key Facts
Intevac raised its 2026 financial outlook after posting record sales of $233.3 million in the third quarter, up 42.4% year over year and 17.7% from the second quarter, according to a company announcement dated October 27. The company now expects sales of $820 million to $850 million, up from its previous range of $750 million to $780 million. It also raised its operating income margin forecast to 21–22% from 19–20%. The revision followed a quarter in which sales and orders reached record levels. The company said advanced logic, high-bandwidth memory and data center infrastructure remain the main drivers of demand in the semiconductor cycle.
Third-quarter orders exceeded the record set in the second quarter, while the book-to-bill ratio remained well above 1, the company said. This indicates that new orders continued to exceed sales recorded during the period, alongside growth in quarterly revenue. The semiconductor and vacuum coating segment was the group’s largest contributor, with sales of $135.4 million. Segment sales rose 74.7% from a year earlier and 26.1% from the second quarter. The segment accounted for 58.0% of group sales in the third quarter.
Intevac attributed the continuing demand cycle to advanced logic, high-bandwidth memory and data center infrastructure, saying these factors were particularly prominent in Asia-Pacific and China. The company’s sales in China rose 71.7% year over year to $73.2 million during the quarter, equivalent to 31.4% of group sales. It said strong semiconductor demand supported growth in China and Asia-Pacific. China’s share shows that the market accounted for nearly a third of the group’s revenue during the period. In the broader market, the Semiconductor Industry Association said the global market grew for the eighteenth consecutive month in August, driven by sales in the Americas, Asia-Pacific and China.
The operating income margin improved to 25.5% in the third quarter, compared with 21.3% in the second quarter and 14.0% a year earlier. The company said, however, that the quarter’s result included some positive one-time effects, providing context for the margin reading against the revised annual forecast. The operating income margin was 18.9% in the first half of 2026, compared with 17.6% in the same period a year earlier. Before the current revision, the company raised its annual sales forecast in July to $750–780 million from $710–750 million, and its margin forecast to 19–20% from 18–20%. The October revision follows that increase, with further raises to both the sales and margin ranges.
The successive forecast increases follow a year that began with the company projecting preliminary annual sales of $680–720 million and an operating income margin of 17–19%. Intevac ended 2025 with record sales of $673.7 million, up 0.4%, while its operating profit margin fell to 16.7% from 20.3% in 2024. In the first half of 2026, sales reached $379.1 million, up 16.4% year over year. The third-quarter results point to an acceleration from the growth recorded in the first half, alongside a larger contribution from the semiconductor and vacuum coating segment. These figures place the new forecast within a gradual upward revision that began in July and accelerated after the third-quarter results.
The company said cost inflation is increasing, particularly in logistics and some materials, and expects these costs to become a greater burden later. It also said risks of supply chain disruption remain elevated. This comes as the company raised its annual operating income margin forecast despite recording positive one-time effects in the third quarter. Intevac is scheduled to publish preliminary sales in January 2027. It then plans to announce its fourth-quarter and full-year 2026 results in March 2027.