Axcelis Technologies (ACLS) experienced a significant pre-market plunge of 13.30% on Wednesday, following the release of its fourth-quarter 2025 financial results and first-quarter 2026 guidance.

The semiconductor equipment company reported Q4 adjusted earnings per share of $1.49, beating the FactSet consensus estimate of $1.12. Revenue for the quarter was $238.3 million, also surpassing analyst expectations of $215 million.

However, the sharp stock price decline appears primarily driven by the company's guidance for the first quarter of 2026. Axcelis expects revenue of approximately $195 million and non-GAAP earnings per share of about $0.71, which represents a sequential decline from the strong Q4 performance and falls below analyst expectations of $207.2 million in revenue and $1.01 in EPS. This outlook has led to investor concern about near-term business prospects.