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Axcelis Announces Financial Results for Second Quarter 2026

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Q2 2026 Highlights:

Revenue of $215.2 millionGAAP Gross Margin of 42.4%, and Non-GAAP Gross Margin of 42.7%GAAP Operating Margin of 9.4% and Non-GAAP Operating Margin of 14.7%GAAP Diluted Earnings Per Share of $0.75, and Non-GAAP Diluted Earnings Per Share of $1.06

BEVERLY, Mass., Aug. 6, 2026 /PRNewswire/ — Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2026.

President and CEO Russell Low commented, “We executed well in the second quarter, delivering results that exceeded our forecasts driven by stronger system shipments and higher CS&I volume.” Low continued, “Demand in the Memory market remains robust, and we are also benefitting from positive momentum in our Power market. In General Mature, we are encouraged by improving engagement and utilization trends as customers respond to growing end-demand in data center, industrial and automotive segments. As a result, we now expect to deliver year-over-year revenue growth in 2026, with momentum carrying through to 2027. We are focused on satisfying the remaining conditions to complete our pending merger with Veeco and look forward to closing the transaction in the second half of 2026.”

Senior Vice President and Interim CFO David Ryzhik stated, “Axcelis delivered better than expected revenue and operating income in our second quarter, reflecting the attractive operating leverage in our business.” Ryzhik concluded, “With improving systems demand in our markets and continued strength in our CS&I aftermarket business, we anticipate that Axcelis’ financial performance will continue to improve over the balance of 2026.”

Results Summary

(In thousands, except per share amounts and percentages)

Three months ended June 30,

2026

2025

Revenue

$

215,175

$

194,544

Gross margin

42.4 %

44.9 %

Operating margin

9.4 %

14.9 %

Net income

$

23,291

$

31,376

Diluted earnings per share

$

0.75

$

0.98

Non-GAAP Results

Three months ended June 30,

2026

2025

Non-GAAP gross margin

42.7 %

45.2 %

Non-GAAP operating margin

14.7 %

17.7 %

Adjusted EBITDA

$

35,972

$

38,872

Non-GAAP net income

$

32,968

$

36,013

Non-GAAP diluted earnings per share

$

1.06

$

1.13

Business Outlook
For the third quarter ending September 30, 2026, Axcelis expects revenues of approximately $230 million, GAAP earnings per diluted share of approximately $0.76, and non-GAAP earnings per share of approximately $1.11.

Please refer to Third Quarter 2026 Outlook under the “Notes on our Non-GAAP Financial Information” section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

Second Quarter 2026 Conference Call
The Company will host a call to discuss the results for the second quarter 2026 today at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis’ website at www.axcelis.com, or by registering as a participant here:
https://register-conf.media-server.com/register/BIf61211144e3b4baeb4c13ba3b1f529fa
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results
This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

Safe Harbor Statement
This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis
Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President and Interim CFO
Telephone: (978) 787-2352
Email: David.Ryzhik@axcelis.com

Press/Media Relations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended 

Six months ended

June 30,

June 30,

2026

2025

2026

2025

Revenue:

Product

$

200,488

$

183,402

$

388,497

$

366,226

Services

14,687

11,142

25,634

20,881

Total revenue

215,175

194,544

414,131

387,107

Cost of revenue:

Product

106,998

95,462

212,734

189,962

Services

16,988

11,739

29,627

21,034

Total cost of revenue

123,986

107,201

242,361

210,996

Gross profit

91,189

87,343

171,770

176,111

Operating expenses:

Research and development

28,977

27,064

57,493

54,192

Sales and marketing

19,554

15,003

36,908

30,127

General and administrative

22,377

16,311

49,138

33,668

Total operating expenses

70,908

58,378

143,539

117,987

Income from operations

20,281

28,965

28,231

58,124

Other income (expense):

Interest income

4,575

5,481

9,037

11,082

Interest expense

(1,263)

(1,355)

(2,554)

(2,722)

Other, net

1,755

1,906

1,259

1,597

Total other income

5,067

6,032

7,742

9,957

Income before income taxes

25,348

34,997

35,973

68,081

Income tax provision

2,057

3,621

3,468

8,126

Net income

$

23,291

$

31,376

$

32,505

$

59,955

Net income per share:

Basic

$

0.76

$

0.99

$

1.06

$

1.87

Diluted

$

0.75

$

0.98

$

1.05

$

1.87

Shares used in computing net income per share:

Basic weighted average shares of common stock

30,805

31,847

30,764

32,051

Diluted weighted average shares of common stock

31,134

31,882

31,084

32,103

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

June 30,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$

154,996

$

145,451

Short-term investments

247,220

228,802

Accounts receivable, net

154,149

168,479

Inventories, net

338,174

329,010

Prepaid income taxes

4,863

4,658

Prepaid expenses and other current assets

80,369

66,802

Total current assets

979,771

943,202

Property, plant and equipment, net

58,022

56,146

Operating lease assets

27,568

28,927

Finance lease assets, net

13,516

14,154

Long-term restricted cash

10,633

10,627

Deferred income taxes

78,815

79,895

Long-term investments

174,829

182,396

Other assets

43,684

46,004

Total assets

$

1,386,838

$

1,361,351

Current liabilities:

Accounts payable

$

58,807

$

42,309

Accrued compensation

20,010

34,233

Warranty

9,634

9,516

Income Taxes

2,833

11,383

Deferred revenue

81,679

65,494

Current portion of finance lease obligation

1,722

1,575

Other current liabilities

25,416

33,150

Total current liabilities

200,101

197,660

Long-term finance lease obligation

39,845

40,754

Long-term deferred revenue

36,863

43,445

Other long-term liabilities

44,208

44,815

Total liabilities

321,017

326,674

Stockholders’ equity:

Common stock, $0.001 par value, 75,000 shares authorized; 30,881 shares issued and
outstanding at June 30, 2026; 30,717 shares issued and outstanding at December 31, 2025

31

31

Additional paid-in capital

536,152

533,309

Retained earnings

536,044

503,539

Accumulated other comprehensive loss

(6,406)

(2,202)

Total stockholders’ equity

1,065,821

1,034,677

Total liabilities and stockholders’ equity

$

1,386,838

$

1,361,351

 

Axcelis Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

Six months ended

June 30,

June 30,

2026

2025

2026

2025

Cash flows from operating activities

Net income

$

23,291

$

31,376

$

32,505

$

59,955

Adjustments to reconcile net income to net cash provided by operating
activities:

Depreciation and amortization

4,439

4,515

8,875

8,824

Stock-based compensation expense

6,425

5,421

11,324

10,324

Other

(645)

(9,335)

3,160

(11,017)

Change in other assets and liabilities, net

(15,137)

7,750

(19,352)

11,436

Net cash provided by operating activities

18,373

39,727

36,512

79,522

Cash flows from investing activities

Expenditures for property, plant and equipment and capitalized software

(3,554)

(1,985)

(5,393)

(6,945)

Other changes in investing activities, net

(2,543)

(2,628)

(11,343)

42,801

Net cash (used in) provided by investing activities

(6,097)

(4,613)

(16,736)

35,856

Cash flows from financing activities

Repurchase of common stock

(244)

(45,337)

(244)

(63,515)

Other changes from financing activities, net

(7,608)

(1,650)

(9,005)

(3,582)

Net cash used in financing activities

(7,852)

(46,987)

(9,249)

(67,097)

Effect of exchange rate changes on cash and cash equivalents

(252)

1,643

(976)

1,935

Net increase (decrease) in cash, cash equivalents and restricted cash

4,172

(10,230)

9,551

50,216

Cash, cash equivalents and restricted cash at beginning of period

161,457

191,510

156,078

131,064

Cash, cash equivalents and restricted cash at end of period

$

165,629

$

181,280

$

165,629

$

181,280

 

Axcelis Technologies, Inc. 

Schedule Reconciling Selected Non-GAAP Financial Measures

(In thousands, except per share amounts)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

GAAP gross Profit

$

91,189

$

87,343

$

171,770

$

176,111

Restructuring1

—

—

—

226

Stock-based compensation

755

569

1,197

922

Non-GAAP gross profit

$

91,944

$

87,912

$

172,967

$

177,259

Non-GAAP gross margin

42.7 %

45.2 %

41.8 %

45.8 %

GAAP operating expense

$

70,908

$

58,378

$

143,539

$

117,987

Transaction and integration2

(4,827)

—

(15,225)

(481)

Bad debt expense

—

—

(65)

—

Restructuring1

—

29

—

(894)

Stock-based compensation

(5,670)

(4,852)

(10,127)

(9,402)

Non-GAAP operating expense

$

60,411

$

53,555

$

118,122

$

107,210

GAAP operating income

$

20,281

$

28,965

$

28,231

$

58,124

Transaction and integration2

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring1

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Non-GAAP operating income

$

31,533

$

34,357

$

54,845

$

70,049

Non-GAAP operating margin

14.7 %

17.7 %

13.2 %

18.1 %

GAAP income tax provision

$

2,057

$

3,621

$

3,468

$

8,126

Income tax effect of non-GAAP
adjustments3 

1,575

755

3,726

1,670

Non-GAAP income tax provision

$

3,632

$

4,376

$

7,194

$

9,796

GAAP net income

$

23,291

$

31,376

$

32,505

$

59,955

Transaction and integration2

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring1

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Income tax effect of non-GAAP
adjustments3 

(1,575)

(755)

(3,726)

(1,670)

Non-GAAP net income

$

32,968

$

36,013

$

55,393

$

70,210

GAAP diluted EPS

$

0.75

$

0.98

$

1.05

$

1.87

Transaction and integration2

0.16

—

0.49

.01

Bad debt expense

—

—

—

—

Restructuring1

—

—

—

0.03

Stock-based compensation

0.21

0.17

0.36

0.32

Income tax effect of non-GAAP
adjustments3 

(0.05)

(0.02)

(0.12)

(0.05)

Non-GAAP diluted EPS

$

1.06

$

1.13

$

1.78

$

2.19

Note 1:

Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2:

Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025. Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.

Note 3:

Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

 

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net Income

$

23,291

$

31,376

$

32,505

$

59,955

Other (income)/expense

(5,067)

(6,032)

(7,742)

(9,957)

Income tax provision

2,057

3,621

3,468

8,126

Depreciation & amortization

4,439

4,515

8,875

8,824

Subtotal

24,720

33,480

37,106

66,948

Transaction and integration1

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring2

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Adjusted EBITDA

$

35,972

$

38,872

$

63,720

$

78,873

Adjusted EBITDA margin

16.7 %

20.0 %

15.4 %

20.4 %

Note 1:

Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.

Note 2:

Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

Axcelis Technologies, Inc.

Third Quarter 2026 Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

Three months ended

September 30, 2026

GAAP diluted EPS

$

0.76

Transaction and Integration1

0.19

Stock-based compensation

0.21

Income tax effect of non-GAAP adjustments2

(0.06)

Non-GAAP diluted EPS

$

1.11

Note 1:

Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.

Note 2:

Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-second-quarter-2026-302844749.html

SOURCE Axcelis Technologies, Inc.

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From Pasture to Power: Gordon Solar Farm Showcases the Future of Farming and Solar Energy in New Zealand

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WHAKATĀNE, New Zealand, Nov. 10, 2026 /PRNewswire/ — An agrivoltaic project in Galatea, New Zealand, is demonstrating how agricultural land can generate renewable energy while continuing to support productive farming, offering a new approach to land use for rural communities.

The Gordon Cattle and Solar Farm, located in the Whakatāne District, combines a 4.7 MW solar installation on 8 hectares of land with a dairy farm operation of around 700 cattle heads. Featuring TCL Solar 625W TOPCon modules and Clenergy ezTrackers D1P, the project brings together solar technology, agricultural expertise and tracking infrastructure to demonstrate the potential of dual-purpose land use.

The official opening of the project will take place on Thursday, 12 November 2026, at the Gordon Dairy Farm in Galatea. The public event will bring together representatives from the agricultural and renewable energy industries, project partners and local communities, with a live panel discussion exploring the opportunities and practical considerations of integrating solar generation into working farmland.

Making More of Agricultural Land

Agrivoltaics refers to the integration of solar energy generation and agricultural activities on the same land. At the Gordon Solar Farm, solar trackers are elevated to 2.2 metres, allowing cattle to continue grazing beneath the installation. During daylight hours, the tracking system follows the sun to optimise electricity generation, while the farm retains its agricultural function.

This approach offers potential benefits beyond electricity production. By providing shade, the solar installation reduces direct sun exposure to the ground, lowering soil temperatures and moisture loss, and diminishing irrigation requirements. For livestock, shaded areas can offer relief from intense heat and contribute to improved animal comfort during warmer conditions.

The relationship can also benefit the solar installation itself. Vegetation and moisture beneath the panels may help moderate the module temperature and support energy generation.

Solar Technology Designed for Agricultural Environments

Operating solar modules in an agricultural setting presents specific technical challenges. One consideration is exposure to ammonia, a corrosive gas released through livestock waste, manure and agricultural processes. Over time, ammonia can affect susceptible materials and components within solar modules, potentially contributing to corrosion and reduced long-term performance.

This makes module durability an important consideration when selecting solar technology. The TCL Solar TOPCon modules supplied for the Gordon project have undergone ammonia corrosion resistance testing in accordance with IEC 62716, the international standard for assessing resistance to ammonia exposure.

The enhanced certification provides an additional layer of validation and reflects the importance of selecting technology suited to the specific environment of a project.

Bringing Farming and Solar Expertise Together

The Gordon Solar Farm has been delivered through collaboration between the Gordon family, TCL Solar, Clenergy, Micropico, insurance and financial partners. Each partner brings a different perspective to the project, from the practical realities of operating a working dairy farm to the engineering and technology required to integrate solar generation into an agricultural environment.

These perspectives will come together at the official opening during a live panel discussion that will explore the lessons emerging from the project and consider a broader question for the agricultural and energy sectors: how can landowners create additional value from their land while continuing to support the farming businesses and communities that depend on it?

A Model for the Future of Rural Renewable Energy

For TCL Solar, the project demonstrates the importance of reliable module technology in installations with specific operational and environmental demands.

As New Zealand continues to expand its renewable energy capacity, the Gordon Solar Farm offers a practical example of how solar energy can become part of the wider agricultural landscape, creating opportunities for farmers, energy providers and rural communities alike.

The official opening of the Gordon Cattle and Solar Farm will take place on Thursday, 12 November 2026, at 228 Grant Road, Galatea, New Zealand.

For more information, visit www.tclsolar.com

About TCL Solar

TCL Solar is one of TCL Zhonghuan’s two flagship module brands, alongside SunPower for the Australian and Pacific markets.

TCL Zhonghuan (TCL Zhonghuan Renewable Energy Technology Co., Ltd.) is a BNEF Tier 1 global solar manufacturer and a technology leader across the photovoltaic value chain. Founded in 1958, the company has played a defining role in the development of the global PV industry, beginning monocrystalline silicon R&D in 1969. With full vertical integration from ingots and wafers through to modules, TCL Zhonghuan became the world’s #1 silicon wafer manufacturer in 2024, achieving 19% of global production capacity share. Ongoing innovation is supported by over 4,600 solar-specific patents, alongside advanced manufacturing capabilities. The acquisition of SunPower in 2025 and DAS Solar in 2026 further strengthens TCL Zhonghuan’s position in high-efficiency BC technology.

View original content:https://www.prnewswire.com/apac/news-releases/from-pasture-to-power-gordon-solar-farm-showcases-the-future-of-farming-and-solar-energy-in-new-zealand-302934622.html

SOURCE TCL Solar

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GTN appoints former Gemini and Kraken executive Mark Jennings as global head of digital assets

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New role to lead GTN’s tokenisation strategy as more platforms bring traditional assets on-chain

DUBAI, UAE, Nov. 10, 2026 /PRNewswire/ — GTN, the global fintech powering limitless investment, today announced the appointment of Mark Jennings as global head of digital assets. Mark will lead GTN’s strategy to support tokenised securities through its global market access.

Mark joins GTN from Gemini, where, as CEO of Gemini Europe, he led the exchange’s European expansion. Before that, he held senior roles at Kraken, including CEO of Crypto Facilities, its FCA-regulated derivatives venue for institutional clients.

Manjula Jayasinghe, GTN’s co-founder and group CEO, said: ‘We are seeing growing demand for tokenised securities, where investors can trade traditional assets on-chain, 24/7, with real-time settlement, and we expect this trend to accelerate in the years ahead. With our industry-leading multi-market, multi-asset coverage, we are well positioned to help platforms bridge traditional and digital markets. Mark brings substantial experience from the digital assets industry and will lead our efforts with the right technology, partnerships and regulatory approach.’

Mark said: ‘Tokenisation is one of the most significant shifts in market infrastructure in decades. At Gemini and Kraken, I saw first-hand users’ demand for traditional assets alongside crypto, and the complexity of delivering them in a robust, compliant and scalable way. GTN has already done the difficult work to connect to markets and asset classes. That puts us in a unique position to take a leading role in helping platforms bring those assets on-chain. I’m excited to lead that work with platforms across the ecosystem to bring tokenised securities to their users.’

Mark’s appointment follows GTN’s hire of former Saxo Bank executive Daniel Endler as its first group chief product officer in October. Together, the two appointments strengthen GTN’s senior leadership as it expands its offering for financial institutions and digital asset platforms.

About GTN
GTN is the global fintech infrastructure powering limitless investment through a unified API-first architecture. By combining cloud-native technology with deep institutional expertise, GTN provides brokers, banks, asset managers and fintechs with brokerage infrastructure spanning 90+ markets and up to 8 asset classes across GTN’s six regulated entities, through a single API, enabling partners to create the next generation of investing and trading experiences. From fractional trading and micro-portfolios, including $1 fractional bonds, to full-service brokerage, GTN automates the investment lifecycle from digital onboarding to post-trade settlement. As a single counterparty, GTN reduces technical and regulatory burdens, enabling investment banks, brokerage firms and wealth management firms to scale without having to build technology from scratch.

GTN has over 700 professionals across 14 countries and serves more than 500 clients worldwide, united by one mission: transforming the accessibility of investment and trading opportunities. GTN operates through six regulated entities, each authorised in its own jurisdiction: FCA in the UK, DFSA in the DIFC, MAS in Singapore, SEC and FINRA in the US, FSCA in South Africa and SFC in Hong Kong. Strategic investors include IFC (World Bank Group) and SBI Ventures Singapore. To learn more, visit www.gtngroup.com or follow us on LinkedIn.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/gtn-appoints-former-gemini-and-kraken-executive-mark-jennings-as-global-head-of-digital-assets-302933671.html

SOURCE GTN

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AI Plans Outrun Store Realities as Bad Stock Data Can Cost Large Retailers Millions Each Year

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Scandit survey of store associates finds stock records match shelves less than half the time, fueling a ‘shadow store’ of paper, chats and photos that leaves AI working from an incomplete view of the store and business

ZÜRICH, Nov. 10, 2026 /PRNewswire/ — Scandit, the leader in smart data capture powered by vision AI, today released the results of global research revealing that retail’s race to deploy AI is running ahead of the data reality inside its stores. Store associates reported that stock information matches what they find on the shelf just 46% of the time while only 8% trust store data completely. This creates a costly gap between what the system says, what is actually in the store and what customers experience, while leaving AI and other technology investments to act on incomplete records.

That gap is already being absorbed by labor. Associates estimate they would each get back more than 4.4 hours a week, nearly six working weeks a year, if they had data they could trust. That time amounts to millions in recoverable labor hours. A retailer employing 10,000 store associates, for example, faces more than $41 million a year* in labor cost tied to compensating for the gap. Extrapolating that time across the entire pool of retail associates in the U.S., as tabulated by the U.S. Bureau of Labor Statistics, inaccurate data could cost the retail industry as much as $22 billion annually.

And when the system is wrong, associates do what they have to do to keep the store running. Nearly half (49%) correct the record themselves and 44% raise a stock adjustment. But among associates who take action, 42% bypass the official system entirely, while 68% use at least one informal method, including paper notes, team chats, personal phone photos and apps or memory. The result is a ‘shadow store’ in which vital information exists outside the record that head office, dashboards and AI systems rely on.

“Retailers do not have an AI adoption problem as much as a store truth problem,” said Samuel Mueller, CEO and co-founder of Scandit. “Associates are spending valuable time repairing these gaps, yet much of that work disappears into unofficial tracking systems. Before retailers ask AI to make more decisions based on inaccurate store data, they need a shared, accurate view of what is actually happening on the shelf and across their stores.”

Associates’ trust in stock data does not build gradually. The survey highlights it stays low until the data is very good. Only 8% of associates completely trust their store’s stock information, and only one in four say it is accurate more than 70% of the time. Among associates who put accuracy anywhere up to 50%, roughly a quarter report high trust, and that figure barely moves until accuracy passes 70%, when it rises sharply.

“This is not a gradual improvement problem,” said Andrew Smith, Managing Partner and co-founder of ThinkUncommon and a RETHINK Retail Top Expert since 2021. “Moving stock accuracy from 46% to 60% may look like progress in a board report and still change nothing on the floor. Trust only begins to move once accuracy clears 70%, and until then associates do what sensible people do: they check the shelf themselves and either correct the system or just do what they need to do to help the customer in front of them.”

The consequences extend beyond productivity. Associates report spending an average of 4.1 hours each week handling customer questions that store technology should be able to answer, and are asked to physically check whether an item is in stock 5.85 times a week on average. More than one in five say they make those checks more than ten times a week.

The findings point to a practical lesson for technology deployment: associates who participated in a pilot reported using most store tools at a rate of 74%, compared with 61% among those who were consulted before rollout and those who were never asked. Half of pilot participants reported high trust in their stock data, compared with 25% of those who were never asked for input.

Read The Store Truth Gap report here.

Asked what would make inventory management workflows easier, associates said responded with the following:

“Get the stock counts actually right so I’m not chasing ghost inventory.””A lot of times the back stock isn’t in the system so I go and have to physically check more often than I’d like.””More accurate layouts. Sometimes it sends me to a location that doesn’t have product.””More consultation from head office with us, who are the ones facing the customer.”

*Estimate is based on an average self-reported $18 hourly wage

About the survey

Scandit commissioned Sapio Research to survey 2,200 store associates online in September 2026. All worked in physical stores for retailers with more than 1,000 employees across the U.S., Germany, UK, France, Italy, Canada and Poland. The research covered grocery, mass merchant and department store, hypermarket and supercenter, DIY and home improvement, convenience, and drugstore and pharmacy formats.

About Scandit

Scandit is the leader in smart data capture, powered by vision AI, giving superpowers to workers, customers, and businesses by providing actionable insights and automating end-to-end processes. Its Smart Data Capture platform enables smart devices, such as smartphones, handheld computers, drones, digital eyewear, robots, and fixed cameras to interact with physical items by capturing data from barcodes, text, IDs, and objects with unmatched speed, accuracy, and intelligence.

Scandit enables innovation that delivers significant cost savings, increases employee retention and customer loyalty. The company partners with customers at every step with trials, solution design, integration, and customer success support included.

Visit scandit.com to learn why market leaders across retail, transport and logistics, healthcare and manufacturing like Instacart, Carrefour, Ahold Delhaize, Albertsons, Levi Strauss & Co., Sephora, Lufthansa, and FedEx trust Scandit.

 

 

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