BlackRock ve 2. čtvrtletí nakoupil novou pozici v Onto Innovation za 2,083 miliardy USD a držel 11,07 % společnosti. Firma zároveň oznámila čtvrtletní EPS 1,93 USD a tržby 343,13 milionu USD.
BlackRock Inc. bought a new position in Onto Innovation Inc. (NYSE:ONTO – Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 5,505,181 shares of the semiconductor company’s stock, valued at approximately $2,083,436,000. BlackRock Inc. owned 11.07% of Onto Innovation at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also made changes to their positions in ONTO. Pallas Capital Advisors LLC bought a new stake in shares of Onto Innovation in the second quarter valued at about $562,000. Deutsche Bank AG bought a new position in Onto Innovation during the 2nd quarter worth about $4,124,000. Perigon Wealth Management LLC bought a new position in Onto Innovation during the 2nd quarter worth about $285,000. TimesSquare Capital Management LLC purchased a new position in Onto Innovation during the 2nd quarter valued at about $82,166,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Onto Innovation during the 2nd quarter valued at about $42,000. Institutional investors own 98.35% of the company’s stock.
Onto Innovation Stock Performance ONTO stock opened at $299.30 on Thursday. Onto Innovation Inc. has a one year low of $101.00 and a one year high of $386.46. The firm has a market cap of $14.69 billion, a price-to-earnings ratio of 112.52, a PEG ratio of 1.05 and a beta of 1.59. The company has a debt-to-equity ratio of 0.77, a quick ratio of 8.33 and a current ratio of 9.73. The firm has a 50-day simple moving average of $305.60 and a two-hundred day simple moving average of $262.54.
Onto Innovation (NYSE:ONTO – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.69 by $0.24. Onto Innovation had a net margin of 11.84% and a return on equity of 13.44%. The firm had revenue of $343.13 million for the quarter, compared to the consensus estimate of $325.29 million. During the same quarter in the previous year, the firm earned $1.25 EPS. The company’s quarterly revenue was up 35.3% compared to the same quarter last year. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. On average, equities analysts forecast that Onto Innovation Inc. will post 7.88 EPS for the current fiscal year. Wall Street Analyst Weigh In Several equities research analysts have recently weighed in on ONTO shares. B. Riley Financial reaffirmed a “buy” rating on shares of Onto Innovation in a research report on Friday, August 7th. Weiss Ratings lowered shares of Onto Innovation from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, August 7th. Freedom Capital upgraded Onto Innovation to a “strong-buy” rating in a report on Wednesday, June 17th. The Goldman Sachs Group initiated coverage on Onto Innovation in a research report on Monday. They set a “buy” rating and a $400.00 target price on the stock. Finally, Needham & Company LLC lifted their price target on Onto Innovation from $330.00 to $360.00 and gave the company a “buy” rating in a report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $380.30.
Read Our Latest Stock Analysis on ONTO
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Onto Innovation (NYSE:ONTO) is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company’s solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.
Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.
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Onto Innovation za měsíc vzrostla o 26,1 % po růstu tržeb ve 2. čtvrtletí o 35,3 % na 343,1 milionu USD. Firma zároveň zvýšila výhled růstu tržeb pro druhou polovinu roku na více než 25 %.
Key Takeaways Onto Innovation shares gained 26.1% in a month as Q2 revenue rose 35.3% to $343.1 million.ONTO's backlog topped $1.1 billion, with 30%-40% tied to 2027, improving growth visibility.Onto Innovation raised second-half revenue growth guidance to more than 25% over the first half. Onto Innovation Inc. (ONTO - Free Report) shares have advanced 26.1% in the past month, putting the focus on whether operating momentum can keep pace with a much higher stock price. Record quarterly revenues, margin expansion and rising estimates support the move.
Backlog extending into 2027 and a higher second-half outlook add visibility to the growth case. The offset is valuation. ONTO now discounts substantial execution, leaving less room for customer, cost, or qualification setbacks.
ONTO's Earnings Momentum Supports the RallySecond-quarter revenues climbed 35.3% year over year to $343.1 million. Non-GAAP earnings of $1.93 per share exceeded consensus by about 15%, while revenues topped management's $320-$330 million guidance range and the $325.6 million consensus mark.
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Advanced Nodes revenues rose 50% sequentially to about $120 million, with memory up roughly 60% and logic more than 40%. Inspection, led by the Dragonfly family, grew 30% sequentially as demand strengthened across 2.5D logic packaging and high-bandwidth memory applications.
Onto's Backlog Extends Growth VisibilityBacklog surpassed $1.1 billion. Management said roughly 60%-70% is tied to 2026 and 30%-40% covers 2027, reflecting customers' willingness to place purchase orders earlier than historical norms to secure supply.
Onto also received more than $200 million of Dragonfly orders from a single outsourced semiconductor assembly and test customer, with most scheduled for 2027. That order timing provides greater visibility, particularly in advanced packaging, where demand had historically been harder to forecast.
ONTO Raises the Bar for the Second HalfManagement raised expected second-half revenue growth to more than 25% over the first half, up from its prior 15% outlook. Third-quarter revenues are projected at $380-$400 million, with another sequential increase expected in the fourth quarter.
The third-quarter non-GAAP gross margin target is 57.3%-57.8%, while non-GAAP operating margin is projected at 31.5%-32.5%. Those targets imply further operating leverage, making delivery against the raised revenue and margin expectations central to the next leg of the rally.
ONTO's Premium Multiples Raise the Risk BarONTO trades at 15.2X trailing enterprise value-to-sales, well above its five-year median of 5.7X and the sector's 8.4X. The stock remains below its sub-industry multiple, but its own historical premium has widened materially.
That valuation indicates that substantial growth is already reflected in the shares. Sustaining the premium may require continued upward estimate revisions and consistent execution, because a revenue or margin miss could have a larger effect when expectations are elevated.
Onto's Execution Risks Could Test the RallyFour customers generated 57.3% of first-half 2026 revenues, leaving Onto sensitive to changes in major customers' capital plans. Trade-policy shifts, material and freight costs, supply-chain pressure and lengthy product qualifications add other execution variables.
KLA Corporation (KLAC - Free Report) supplies process-control and process-enabling solutions across wafer, integrated circuit and packaging manufacturing. Nova Ltd. (NVMI - Free Report) is another process-control peer, providing material, optical and chemical metrology and reporting record second-quarter sales in advanced-packaging dimensional metrology.
ONTO's Strong Rank Meets Weak Style ScoresThe setup remains constructive but not one-sided. ONTO's earnings outlook and backlog support the rally, while premium valuation and customer concentration increase sensitivity to any slowdown in revenues, margins, or estimate revisions.
ONTO currently carries a Zacks Rank #1 (Strong Buy), and the Zacks Consensus Estimate for earnings in the current fiscal year has risen 10.5% in the past month. The stock has a Value Score of F, Growth Score of D, Momentum Score of C and VGM Score of F. The Rank points to favorable near-term estimate-revision momentum, but the weak Value and VGM Scores show that the Style Scores provide limited broad support for the shares at current levels. You can see the complete list of today’s Zacks #1 Rank stocks here.
Onto Innovation koupila 27% podíl v Rigaku za zhruba 720 milionů USD, aby urychlila vývoj rentgenového procesního řízení pro výrobu čipů. Firma vidí v tomto trhu asi 1 miliardu USD, ale přínos závisí na vývoji a přijetí zákazníky.
Key Takeaways Onto Innovation bought a 27% Rigaku stake for about $720M to advance next-gen X-ray process control.ONTO sees a roughly $1B semiconductor X-ray market as 3D transistor and packaging complexity increases.ONTO's Rigaku gains depend on joint development, customer qualification and adoption, not immediate revenue. Onto Innovation Inc. (ONTO - Free Report) completed its approximately $720 million purchase of a 27% minority stake in Rigaku Holdings on Aug. 10, 2026. The investment is intended to accelerate joint development of next-generation X-ray process-control technology for semiconductor manufacturing.
The strategic question is how much this capability can expand ONTO's opportunity set as transistor and packaging structures become more complex. The potential is meaningful, but gains will depend on execution, qualification and customer adoption.
ONTO Adds X-Ray to Its Process-Control PortfolioRigaku gives ONTO access to X-ray technologies that complement its optical process-control tools. Management sees the combination as relevant for complex 3D transistor and advanced-packaging structures, broadening the company's reach across optical, materials, X-ray, inspection and lithography technologies.
KLA Corporation (KLAC - Free Report) supplies semiconductor inspection and metrology systems for chip, substrate and advanced-packaging manufacturing. Nova Ltd. (NVMI - Free Report) provides material, optical and chemical metrology and process-control solutions, including X-ray fluorescence. Their portfolios frame the competitive setting as ONTO expands its measurement capabilities.
Rigaku Expands ONTO's Served MarketManagement estimates the semiconductor X-ray technology market at roughly $1 billion. It expects adoption to increase as more complex 3D transistor and packaging structures create demand for additional process-control techniques.
Customer response to the Rigaku collaboration has been positive. ONTO sees potential benefits from software licensing, additional metrology-tool opportunities and dividend income, but those outcomes remain prospective and depend on successful product development and commercialization.
ONTO Entered the Deal With Ample LiquidityONTO ended the second quarter with $1.88 billion of cash and short-term investments. The balance sheet had been strengthened by a $1.5 billion 0% convertible-note offering due in 2031.
The financing generated about $1.2 billion of net cash after share repurchases, capped calls and transaction costs. That liquidity gave ONTO the capacity to fund the Rigaku investment while preserving resources for other corporate needs.
ONTO Still Faces Execution Risk With RigakuThe 27% Rigaku holding is a minority investment that ONTO will account for under the fair value option, and Rigaku's results will not be consolidated. Strategic value therefore depends on joint development, customer qualifications and adoption rather than immediate consolidated revenue.
Portfolio expansion is already requiring investment elsewhere. Operating expenses increased 6.1% sequentially in the second quarter, while Semilab USA generated $20.7 million of revenue but posted a $4.5 million operating loss. Added technology breadth can take time to translate into operating profit.
Rigaku Fits ONTO's Broader Portfolio ExpansionThe Rigaku investment follows ONTO's Semilab acquisition and sits alongside growth initiatives in silicon photonics, Dragonfly inspection and advanced metrology. Together, those moves extend the company's exposure to more stages of semiconductor process control as device complexity rises.
Silicon-photonics orders exceed $50 million, with roughly two-thirds scheduled for 2027. Management estimates ONTO's served addressable market in silicon photonics will exceed $500 million by 2030, providing another expansion path alongside the X-ray opportunity.
ONTO's Short-Term Signal Beats Its Style ScoresThe Rigaku stake broadens ONTO's technology portfolio and opens access to a sizable semiconductor X-ray market, but the investment case still hinges on development milestones, customer qualification and commercial adoption. The opportunity is clear, while the timing and earnings contribution remain less certain.
ONTO currently carries a Zacks Rank #1 (Strong Buy), which points to favorable near-term earnings-estimate revisions. The stock has a Value Score of F, Growth Score of D, Momentum Score of C and VGM Score of F. Those weaker Style Scores provide less support across valuation, growth and momentum characteristics, so the Rigaku opportunity should be weighed alongside execution and valuation considerations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Onto Innovation čeká v roce 2026 nejméně 80% růst tržeb z advanced packaging díky silnější poptávce po AI. Ve 2. čtvrtletí dosáhla non-GAAP hrubá marže 57 %.
Key Takeaways Onto Innovation sees advanced-packaging revenue rising at least 80% in 2026 as AI demand broadens.ONTO's non-GAAP gross margin hit 57% in Q2, with operating margin expected near 32% in Q3.Four customers made up 57.3% of first-half 2026 revenue as ONTO trades well above its five-year median. Onto Innovation Inc. (ONTO - Free Report) is benefiting from accelerating AI-related demand, rising earnings expectations and improving profitability. Advanced packaging, advanced nodes and new process-control applications give the company several growth engines.
The trade-off is valuation. ONTO trades well above its own historical multiple and the broader market, so continued execution matters. Customer concentration, input costs and integration spending add risk when expectations are already elevated.
ONTO's AI Exposure Is BroadeningManagement expects advanced-packaging revenue to grow at least 80% in 2026 and advanced-node revenue to rise more than 35%. Dragonfly demand is expanding across high-bandwidth memory and 2.5D logic packaging, while Atlas G6 adoption is growing in logic and memory. Onto also has more than $50 million of silicon-photonics orders, with roughly two-thirds scheduled for 2027.
KLA Corporation (KLAC - Free Report) is seeing AI infrastructure drive process-control demand across foundry/logic, memory and advanced packaging. Nova Ltd. (NVMI - Free Report) also reported record second-quarter 2026 revenue from advanced logic devices and advanced-packaging solutions, underscoring the broader process-control opportunity tied to device complexity.
Onto's Margins Add Operating LeverageSecond-quarter non-GAAP gross margin reached 57%, while non-GAAP operating margin expanded to 30%. Management expects another 50 basis points of gross-margin improvement in each of the third and fourth quarters.
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Non-GAAP operating margin is expected near 32% in the third quarter and at least 33% exiting 2026. Extended factories are scaling alongside higher demand, giving Onto an avenue to convert revenue growth into stronger earnings growth if execution remains on track.
ONTO's Valuation Leaves Less Room for ErrorONTO trades at 15.2X trailing 12-month enterprise value-to-sales, versus a five-year median of 5.7X. The multiple also exceeds 8.4X for the Zacks sector and 5.7X for the S&P 500.
The counterpoint is the Zacks sub-industry's 38.5X multiple, which is much higher than ONTO's. Even so, the premium to ONTO's own history and the broader market means investors are already paying for sustained growth and margin expansion.
Onto's Risks Complicate the Buy CaseFour customers accounted for 57.3% of first-half 2026 revenues, making changes in large customers' capital plans consequential. Trade-policy shifts, material costs, fuel surcharges, freight expense and supply-chain constraints can also pressure execution.
Portfolio expansion adds another layer of cost. Semilab USA generated $20.7 million of second-quarter revenue but posted a $4.5 million operating loss. Onto must keep investing in product development and customer qualifications while integrating acquired technologies.
ONTO's Near-Term Signal Clashes With Style ScoresONTO's AI exposure, rising estimates and margin expansion support a constructive view, but the valuation leaves little room for execution misses. For new buyers, that mix favors a selective entry rather than chasing the stock solely on growth expectations.
The stock currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for 2026 earnings has risen 10.5% in the past month and 15.4% in the past 12 weeks, pointing to favorable near-term estimate-revision momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.
ONTO has a Value Score of F, Growth Score of D, Momentum Score of C and VGM Score of F. Those grades fall short of the A or B Style Scores that typically provide stronger confirmation for top-ranked stocks, leaving the near-term Rank signal more favorable than the broader style profile.
Onto Innovation ve čtvrtletí zvýšila tržby na 343,13 milionu USD, meziročně o 35,3 %. Tahounem byly Jižní Korea a Tchaj-wan, zatímco Japonsko výrazně zaostalo za odhady.
Have you looked into how Onto Innovation (ONTO - Free Report) performed internationally during the quarter ending June 2026? Considering the widespread global presence of this maker of semiconductor manufacturing equipment, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While analyzing ONTO's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $343.13 million, marking an increase of 35.3% from the year-ago quarter. We will next turn our attention to dissecting ONTO's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Closer Look at ONTO's Revenue Streams AbroadTaiwan generated $106.41 million in revenues for the company in the last quarter, constituting 31% of the total. This represented a surprise of +5.07% compared to the $101.27 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $84.96 million (29.1%), and in the year-ago quarter, it contributed $65.62 million (25.9%) to the total revenue.
During the quarter, Southeast Asia contributed $11.25 million in revenue, making up 3.3% of the total revenue. When compared to the consensus estimate of $23.53 million, this meant a surprise of -52.18%. Looking back, Southeast Asia contributed $16.7 million, or 5.7%, in the previous quarter, and $13.82 million, or 5.5%, in the same quarter of the previous year.
Europe accounted for 4.8% of the company's total revenue during the quarter, translating to $16.31 million. Revenues from this region represented a surprise of -6.34%, with Wall Street analysts collectively expecting $17.41 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $16.55 million (5.7%) and $12.85 million (5.1%) to the total revenue, respectively.
Of the total revenue, $9.48 million came from Japan during the last fiscal quarter, accounting for 2.8%. This represented a surprise of -71.08% as analysts had expected the region to contribute $32.78 million to the total revenue. In comparison, the region contributed $160.88 million, or 55.1%, and $33.77 million, or 13.3%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, South Korea contributed $100.61 million in revenue, making up 29.3% of the total revenue. When compared to the consensus estimate of $81.15 million, this meant a surprise of +23.99%. Looking back, South Korea contributed $69.84 million, or 23.9%, in the previous quarter, and $82.65 million, or 32.6%, in the same quarter of the previous year.
Revenue Projections for Overseas MarketsThe current fiscal quarter's total revenue for Onto Innovation, as projected by Wall Street analysts, is expected to reach $346.37 million, reflecting an increase of 58.8% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Taiwan is anticipated to contribute 30.3% or $105 million, Southeast Asia 7.2% or $25.05 millionEurope 5.1% or $17.7 millionJapan 9.5% or $32.74 million and South Korea 25% or $86.41 million.
For the full year, the company is expected to generate $1.41 billion in total revenue, up 39.8% from the previous year. Revenues from Taiwan, Southeast Asia, Europe, Japan and South Korea are expected to constitute 28.7% ($403.23 million), 6.4% ($89.16 million)5% ($70.54 million)8.4% ($117.79 million) and 23.5% ($329.65 million) of the total, respectively.
Concluding RemarksThe dependency of Onto Innovation on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Onto Innovation, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Examining the Latest Trends in Onto Innovation's Stock ValueOver the preceding four weeks, the stock's value has diminished by 4.1%, against an upturn of 3.4% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Onto Innovation among its entities, has appreciated by 2.8%. Over the past three months, the company's shares have seen an increase of 13.4% versus the S&P 500's 6% increase. The sector overall has witnessed an increase of 3% over the same period.
Onto Innovation ve 2. čtvrtletí překonala horní hranici výhledu, tržby dosáhly 343 milionů USD a EPS byl 1,93 USD. Firma zároveň zvýšila výhled růstu tržeb v druhé polovině roku na nejméně 25 %.
The Nasdaq's Historic Rally Doesn't Mean the Risk Is GoneOnto Innovation NYSE: ONTO reported second-quarter 2026 results above the high end of its guidance range, with revenue, margins and earnings supported by demand for semiconductor process-control systems used in advanced packaging and leading-edge chip manufacturing.
Chief Executive Officer Michael Plisinski said the company set quarterly revenue records and entered the second half with backlog exceeding $1.1 billion. He said increasing customer visibility prompted Onto Innovation to raise its outlook for second-half revenue growth to at least 25% from the first half, compared with a prior expectation for 15% growth.
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Is AI Really Eating Software? A Wall Street Veteran Says No—Here’s Why“We set new quarterly revenue records with advanced nodes growing 50% quarter-over-quarter, and our inspection business, dominated by Dragonfly systems, growing by 30%,” Plisinski said.
Second-Quarter Financial Results Chief Financial Officer Brian Roberts said second-quarter revenue totaled $343 million, up 18% sequentially and 35% from a year earlier. The company reported non-GAAP earnings per share of $1.93, which Roberts said was $0.20 above the high end of its prior guidance range.
3 Chip Stocks Approaching Buy Points Onto Innovation recorded a 57% gross margin, up 130 basis points from the first quarter and 250 basis points from the fourth quarter of 2025. Operating margin reached 30%, an increase of nearly 500 basis points from the beginning of the year, according to Roberts.
The company generated $62 million in operating cash flow during the quarter, slightly exceeding quarterly net income. As of June 30, Onto Innovation held nearly $1.9 billion in cash and short-term investments.
In May, the company completed a $1.5 billion offering of 0% convertible debt due in 2031, generating roughly $1.2 billion in net cash. It used the remaining amount for approximately $200 million of common-stock repurchases, a capped-call transaction and professional fees, Roberts said.
Advanced Nodes and Packaging Demand Revenue from advanced-node customers rose about 50% from the first quarter to approximately $120 million. Memory represented roughly 60% of that business and grew about 60% sequentially, while logic revenue increased more than 40%.
Plisinski said demand broadened across memory, logic and NAND customers. He cited expanded adoption of the Atlas G6 platform for transistor metrology at nodes below 2 nanometers, as well as expected second-half shipments to a major DRAM customer for next-generation memory devices.
The company expects advanced-nodes revenue to grow more than 35% for full-year 2026. Plisinski also said the Iris films and integrated metrology product lines are on track for record revenue this year.
Advanced packaging and specialty devices accounted for nearly half of second-quarter revenue. Inspection revenue, led by the Dragonfly family, grew 30% sequentially as customers increased spending on 2.5D logic and high-bandwidth memory, or HBM, applications.
Onto Innovation raised its full-year advanced-packaging growth outlook to approximately 80%, from a previous projection of 50%. Plisinski said the Dragonfly G5 launch has driven demand from HBM manufacturers and outsourced semiconductor assembly and test, or OSAT, providers serving heterogeneous packaging applications.
The company received more than $200 million in Dragonfly orders from one OSAT partner during the quarter. Most of those orders are scheduled for delivery in 2027.
Backlog Extends Into 2027 Plisinski said approximately 60% to 70% of the more than $1.1 billion backlog is tied to 2026, while 30% to 40% covers 2027. He characterized the backlog as evidence of customers’ confidence in their expansion plans and their desire to secure equipment supply earlier than historical norms.
Management said the backlog includes demand for advanced packaging across HBM and 2.5D logic, including purchases by OSATs and a widening customer base, as well as continued demand for advanced-node metrology products.
While the company did not provide formal 2027 guidance, Plisinski said discussions with customers have been constructive and Onto Innovation has begun discussing volume purchase agreements for 2027. He said the company does not expect to be capacity constrained, pointing to its in-house factories and extended manufacturing partnerships in Asia.
Roberts said the extended-factory strategy, supply-chain localization, lower labor costs and reduced freight expenses contributed to 2026 margin progress. He added that a greater mix of Dragonfly G5 sales could provide further gross-margin support in 2027 because of the platform’s higher average selling price.
Raised Second-Half Outlook For the third quarter, Onto Innovation forecast revenue of $380 million to $400 million and said fourth-quarter revenue is expected to be higher than third-quarter revenue. At the midpoint of the third-quarter range, the company expects non-GAAP earnings per share of approximately $2.28, based on a 15% non-GAAP tax rate and slightly more than 50 million shares outstanding.
The company expects gross margin to improve by an additional 50 basis points in each of the third and fourth quarters, despite potential pressure from material costs, fuel surcharges and freight expense. It forecast a third-quarter operating margin of 32% and expects to exit 2026 with operating margin of at least 33%.
Onto Innovation also highlighted silicon photonics as an emerging opportunity. The company has received more than $50 million in orders related to the technology, with roughly two-thirds expected to ship in 2027. It estimates its served addressable market in silicon photonics could exceed $500 million by 2030.
The company plans to host an analyst meeting at the New York Stock Exchange on Dec. 17 to discuss market strategies and an updated financial model.
About Onto Innovation (NYSE:ONTO)Onto Innovation NYSE: ONTO is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company's solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.
Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended June 2026, Onto Innovation (ONTO - Free Report) reported revenue of $343.13 million, up 35.3% over the same period last year. EPS came in at $1.93, compared to $1.25 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $325.6 million, representing a surprise of +5.38%. The company delivered an EPS surprise of +14.88%, with the consensus EPS estimate being $1.68.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Onto Innovation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Revenue- South Korea: $100.61 million versus $81.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change.Geographic Revenue- China: $14.71 million compared to the $26.93 million average estimate based on two analysts. The reported number represents a change of -15.2% year over year.Geographic Revenue- Japan: $9.48 million versus the two-analyst average estimate of $32.78 million. The reported number represents a year-over-year change of -71.9%.Geographic Revenue- Taiwan: $106.41 million compared to the $101.27 million average estimate based on two analysts. The reported number represents a change of +62.2% year over year.Geographic Revenue- United States: $84.37 million versus $43.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +206.2% change.Revenue- Systems and software: $294.04 million versus $272.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +37.1% change.Revenue- Service: $20.38 million versus $24 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.Revenue- Parts: $28.71 million versus $30.13 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +44.7% change.View all Key Company Metrics for Onto Innovation here>>>
Shares of Onto Innovation have returned -5.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Onto Innovation oznámila výsledky za 2. čtvrtletí 2026. Společnost zveřejnila finanční výsledky po uzavření trhu a následně uspořádala konferenční hovor 6. srpna 2026 v 16:30 EDT.
Onto Innovation Inc. (ONTO) Q2 2026 Earnings Call August 6, 2026 4:30 PM EDT
Company Participants
Shek Ho - Vice President of Investor Relations
Michael Plisinski - CEO & Director
Brian Roberts - Chief Financial Officer
Conference Call Participants
Craig Ellis - B. Riley Securities, Inc., Research Division
Melissa Weathers - Deutsche Bank AG, Research Division
Brian Chin - Stifel, Nicolaus & Company, Incorporated, Research Division
Edward Yang - Oppenheimer & Co. Inc., Research Division
Matthew Prisco - Cantor Fitzgerald & Co., Research Division
William Clarke - Jefferies LLC, Research Division
Vedvati Shrotre - Evercore ISI Institutional Equities, Research Division
Shane Brett - Morgan Stanley, Research Division
Nazerke Baimukan - Freedom Broker, Research Division
Presentation
Operator
Good day, and welcome to the Onto Innovation Second Quarter Earnings Release. Today's conference is being recorded. At this time, I would like to turn the conference over to Sidney Ho, Vice President of Investor Relations. Please go ahead.
Shek Ho
Vice President of Investor Relations
Thank you, Rachel, and good afternoon, everyone. Onto Innovation issued its 2026 second quarter financial results this afternoon shortly after the market closed. If you did not receive a copy of the release, please refer to the company's website where a copy of the release is posted. Joining us on the call today are Michael Plisinski, Chief Executive Officer; and Brian Roberts, Chief Financial Officer. I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the federal securities laws.
Those statements are subject to a range of changes, risks and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Onto Innovation's results, I would encourage you to review our earnings release and our SEC filings. Onto Innovation does not undertake the obligation to update these forward-looking statements in
ONTO čeká ve 2. čtvrtletí výnosy 320–330 mil. USD a upravený non-GAAP EPS 1,65–1,73 USD díky silné poptávce po AI a pokročilém balení. Firma zároveň zlepšuje marže.
Key Takeaways ONTO expects Q2 revenue of $320M-$330M and non-GAAP EPS of $1.65-$1.73 on AI-driven demand.Onto Innovation expects higher gross and operating margins despite higher costs and R&D investments.ONTO expanded its X-ray portfolio with a Rigaku stake and launched Dragonfly G5 shipments for packaging. Onto Innovation (ONTO - Free Report) is set to report earnings for the second quarter of 2026 on Thursday, after the closing bell.
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pinned at $1.68, suggesting a jump of 34.4% from the year-ago quarter’s figure. The company expects non-GAAP EPS between $1.65 and $1.73.
The consensus mark for revenues is pegged at $325.6 million, indicating a 28.4% rise from the year-earlier quarter’s actuals.
ONTO’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, while missing in the other two, with the average surprise being 1.4%.
Image Source: Zacks Investment Research
ONTO’s Earnings WhispersOur proven model does not predict an earnings beat for Onto Innovation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: ONTO has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ONTO currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Trends Shaping ONTO’s Q2 ResultsAI-driven demand continues to strengthen, boosting both front-end and advanced packaging. This helped first-quarter revenue exceed guidance and is expected to drive roughly 20% year-over-year revenue growth in the second quarter. Onto Innovation expects second-quarter revenues of $320–$330 million, implying about 10% upside to prior estimates at the midpoint and 28% year-over-year growth. Second-half momentum is likely driven by customer expansions, new product adoption and a growing backlog, supporting more than 15% sequential revenue growth.
Beyond robust revenue, Onto Innovation expects continued improvement in gross and operating margins in the second quarter, despite headwinds from higher material and fuel costs, along with increased R&D and service investments. The company expects gross margin between 56% and 56.5%, and non-GAAP operating margin between 28% and 28.6%. While monitoring macro and company-specific cost pressures, Onto Innovation remains confident it can expand gross margins by at least 50 basis points in the third and fourth quarters each and exit the year with an operating margin above 30%.
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In April, Onto Innovation deepened its partnership with Rigaku by acquiring a 27% stake for approximately $710 million. The deal is expected to close in the second half of 2026 and will be primarily funded with cash on hand. This deal expands Onto's advanced X-ray technology portfolio, strengthening its semiconductor inspection and metrology capabilities. Along with the Semilab USA acquisition, it broadens Onto Innovation's process control ecosystem. While Rigaku's financials won't be consolidated, the deal is expected to boost earnings through high-margin AI Diffract software, higher metrology tool sales and annual dividend income, with benefits offsetting lost interest income within a year of closing.
Onto Innovation's fastest-growing opportunities lie in advanced packaging and High-Bandwidth Memory (HBM). HBM manufacturing requires precise wafer inspection, defect detection, metrology and packaging inspection. Each of these represents a potential revenue source for the company. In April, ONTO successfully qualified its new Dragonfly G5 platform for both new and existing 2.5D advanced packaging applications, with shipments starting in June. The system features proprietary optics, enhanced illumination and advanced algorithms, improving visibility and throughput while reducing overall ownership costs.
Onto Innovation sees strong growth potential for Dragonfly G5, supported by more than 15 applications across more than 10 customers. Rising AI demand and packaging capacity limits are also speeding up the adoption of panel-level packaging, while JetStep has been qualified at two AI packaging suppliers with production ramp-ups expected in 2027, supporting advanced packaging revenue growth in the second quarter. Furthermore, its advanced nodes business continues to strengthen across logic and memory, driven by Atlas G6 adoption, growing DRAM demand and a new TSV metrology win. With improving NAND trends, ONTO expects advanced nodes revenue to grow about 25% in 2026, outpacing overall wafer fab equipment market growth.
Onto Innovation has historically generated healthy free cash flow, allowing it to invest in innovation while maintaining financial flexibility. For the second quarter, we expect operating cash and free cash flow to be $97.4 million and $90.3 million, respectively.
Despite favorable industry trends, Onto Innovation faces risks from the cyclical nature of semiconductor demand, potential delays in customer capital spending, export restrictions affecting China, intensifying competition in process control, a slower-than-expected recovery in automotive and industrial chips, and ongoing supply chain disruptions. China remains an important semiconductor market but also introduces uncertainty because of ongoing export restrictions affecting advanced semiconductor technologies. Any signs that export regulations are materially affecting sales could pressure revenues.
ONTO Stock vs. IndustryONTO’s shares have soared 183.3% in the past year, outperforming the Zacks Nanotechnology industry’s growth of 181%. The company has also outpaced the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 30.2% and 23.8%, respectively.
Image Source: Zacks Investment Research
ONTO’s key competitors include KLA Corporation (KLAC - Free Report) , Camtek Ltd (CAMT - Free Report) and Applied Materials (AMAT - Free Report) . KLAC, CAMT and AMAT have grown 106.8%, 58.2% and 189.2%, respectively, in the same time frame.
ONTO’s ValuationIn terms of forward price/earnings, ONTO’s shares are trading at 30.41X, higher than the industry’s 5.91X.
Image Source: Zacks Investment Research
KLAC, CAMT and AMAT are trading at multiples of 33.06X, 38.02X and 33.99X, respectively.
Investment Outlook: Buy ONTO Before Q2 Earnings?Onto Innovation heads into second-quarter earnings with several favorable tailwinds. The company's exposure to AI infrastructure, advanced packaging, chiplet architectures and HBM manufacturing places it in some of the semiconductor industry's fastest-growing segments. While cyclical uncertainties and geopolitical risks persist, the company's differentiated technology portfolio, solid profitability and exposure to long-term secular growth drivers make the stock a smart buy for investors now. If ONTO delivers healthy results alongside constructive guidance, it could further strengthen the investment case for the company as a key enabler of the next generation of semiconductor innovation.
Onto Innovation čeká, že jeho byznys s pokročilými uzly v roce 2026 poroste asi o 25 %, tažený logikou, DRAM a raným oživením NAND. Firma zároveň míří na více než 15% růst tržeb oproti předchozímu čtvrtletí díky rostoucímu backlogu a širšímu přijetí produktů.
Key Takeaways Onto Innovation expects advanced nodes business to grow about 25% in 2026, above the industry WFE growth.ONTO sees momentum from logic, DRAM, early NAND recovery and new customer capacity expansions.ONTO expects over 15% sequential revenue growth on rising backlog and broader product adoption. AI, HPC, advanced packaging and next-generation memory are driving unprecedented demand for cutting-edge chips. As manufacturers push toward two-nanometer (2nm) and even smaller process technologies, the need for precision metrology and inspection has been rising. Among the companies benefiting from this trend is Onto Innovation, Inc. (ONTO - Free Report) . Being a semiconductor process control specialist, it has consistently delivered strong financial performance while expanding its presence across advanced logic, memory and advanced packaging.
Onto Innovation's advanced nodes business continues to gain momentum across both logic and memory markets. The Atlas G6 platform is seeing wider adoption after strong competitive evaluations at leading logic customers, while DRAM manufacturers are increasingly using it for next-generation device development. The company also secured a new TSV metrology application win, with initial shipments expected in the second half of 2026. Supported by strong demand in logic and DRAM, along with early signs of a NAND recovery, Onto Innovation expects its advanced nodes business to grow about 25% in 2026, outpacing industry wafer fab equipment growth.
Per management, advanced nodes' revenues more than doubled in 2025, driven by its strong OCD position with leading global logic and memory manufacturers, despite minimal China exposure. Films and integrated metrology also hit record revenues, with integrated metrology expanding beyond memory to include two leading-edge logic customers. Onto Innovation expects the momentum to accelerate in the second half of 2026, driven by customer capacity expansions, growing product adoption and a rising backlog, supporting more than 15% sequential revenue growth.
If AI-driven semiconductor investment remains resilient and advanced-node manufacturing expands as expected, ONTO appears well-positioned to extend its winning streak as the semiconductor industry transitions to increasingly complex manufacturing nodes.
How Does ONTO Stack Up Against Semiconductor Rivals?KLA Corporation (KLAC - Free Report) continues to benefit from AI-driven spending in leading-edge foundry/logic, HBM and advanced packaging, supporting market share gains in process control and steady services growth that helps anchor cash generation. KLA's advanced systems and longer tool lifecycles are driving high-margin service growth by increasing demand for tool performance and uptime. While KLA cited share gains in electron-beam inspection in 2025, the pace of customer adoption and the relative performance of competing platforms remain key variables at the most advanced nodes. If alternative approaches deliver better sensitivity or throughput economics, KLA may need higher R&D and applications spending to defend its installed base and sustain pricing.
Applied Materials (AMAT - Free Report) remains focused on the process complexity created by gate-all-around transitions and continues leading-edge node investments. In the fiscal second quarter, Semiconductor Systems delivered record foundry revenues, supported by strength in ALD, epitaxy and materials treatments, as customers ramp gate-all-around nodes while also adding capacity at advanced FinFET nodes. Management also emphasized that gate-all-around increases its available market and provides multiple opportunities for share gains in deposition, treatments, conductor etch and e-beam. The product cadence is important because it ties AMAT’s growth to architecture transitions rather than only to wafer starts. However, investments in manufacturing capacity, inventory and logistics to support customer ramps are increasing operational complexity.
ONTO Price Performance, Valuation and EstimatesONTO’s shares have soared 208.8% in the past year, outperforming the Zacks Nanotechnology industry’s growth of 203.9% and surpassing the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 33.9% and 23.8%, respectively.
Image Source: Zacks Investment Research
In terms of forward price/earnings, ONTO’s shares are trading at 35.11X, higher than the industry’s 6.8X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONTO has moved up for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
Onto Innovation currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Onto Innovation těží ze silné poptávky po AI čipech a čeká ve 2Q tržby 320–330 milionů USD, tedy zhruba o 28 % meziročně více. Pro celý rok 2026 míří tržby nad 1,3 miliardy USD.
Key Takeaways Onto exceeded Q1 guidance and projected stronger Q2 revenue on sustained AI semiconductor demand.ONTO expects advanced packaging revenue to grow more than 50% in 2026, backed by AI capacity expansion.Onto expects 2026 revenue above $1.3B as backlog, new products and customer expansions drive growth. Onto Innovation Inc. (ONTO - Free Report) is benefiting from strong demand for AI compute, which is driving momentum across both front-end semiconductor manufacturing and advanced packaging. During the first quarter of 2026, the company delivered revenue above its original guidance and expects this momentum to continue with a stronger second-quarter outlook. Management expects growth to continue through the second half of the year, supported by customer capacity expansions, increasing adoption of new products and a growing backlog. This demand is being fueled by the need for high-performance computing and enabling technologies such as silicon photonics.
The company continues to expand its process control capabilities through its broad portfolio of optical metrology solutions. Onto Innovation recently announced a collaboration with Rigaku to combine optical and X-ray technologies through its Ai Diffract software. The company stated that this combination addresses process metrology challenges involving advanced materials and complex 3D structures. The partnership has already resulted in competitive wins and additional customer evaluations across memory and logic manufacturers, while also creating opportunities for software licensing and future hybrid metrology solutions.
Growing AI semiconductor demand is also supporting Onto Innovation’s advanced packaging business. The company announced the qualification of its Dragonfly G5 inspection system at a leading 2.5D logic customer following earlier wins in high-bandwidth memory applications. Dragonfly G5 offers improved sensitivity, higher throughput and multiple sensor capabilities, and shipments are ahead of schedule. The company is actively working with additional customers across more than 15 applications and over 10 customers. At the same time, shrinking interconnect dimensions have increased demand for the company's 3DI technology, leading to additional customer orders.
Onto Innovation also highlighted that AI-driven packaging capacity constraints are encouraging the adoption of panel-level packaging, where its JetStep platform has secured qualifications with packaging suppliers. Based on these factors, the company expects advanced packaging revenue to grow more than 50% in 2026 while its advanced nodes business is projected to increase approximately 25%, supported by continued demand across logic, DRAM and an early recovery in NAND.
The company anticipates second-quarter revenues of $320–$330 million, implying about 10% rise from prior estimates at the midpoint and 28% year-over-year growth. Momentum is set to build in the second half, with at least 15% growth over the first half, putting full-year 2026 revenue above $1.3 billion.
Taking a Look at ONTO’s CompetitorsApplied Materials (AMAT - Free Report) is benefiting from AI-driven demand that is shifting wafer fabrication equipment spending toward leading-edge foundry-logic, DRAM and advanced packaging, where it holds leading process positions. In the second quarter of fiscal 2026, the company delivered record revenue and the highest gross margin in more than two decades, and management sees better multi-quarter visibility as customers share longer-range forecasts. New gate-all-around and packaging products, expanding EPIC collaborations and a growing services attach rate support value-based pricing and operating leverage. For the third quarter of fiscal 2026, Applied Materials expects total revenues of $8.95 billion plus or minus $500 million. Within that outlook, Semiconductor Systems revenues are projected at about $6.90 billion, Applied Global Services at about $1.75 billion and Other at about $300 million.
KLA Corporation (KLAC - Free Report) continues to benefit from AI-driven spending in leading-edge foundry/logic, high-bandwidth memory and advanced packaging, supporting market share gains in process control and steady services growth that helps anchor cash generation. Management expects its advanced packaging portfolio revenue to rise to about $1 billion in 2026 and sees wafer equipment demand strengthening into 2027, with June quarter guidance implying another step up in revenue. For the fourth quarter of fiscal 2026, KLA expects revenues of $3.575 billion plus or minus $200 million. KLA expects foundry/logic to represent approximately 82% of Semiconductor Process Control systems revenue to semiconductor customers in the June quarter, with memory at about 18%, reflecting a mix shift that could influence both revenue composition and near-term margin dynamics.
ONTO Price Performance, Valuation and EstimatesONTO’s shares have soared 22.9% in the past three months, outperforming the Zacks Nanotechnology industry’s growth of 19.9% and surpassing the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 14.2% and 9%, respectively.
Image Source: Zacks Investment Research
In terms of forward price/earnings, ONTO’s shares are trading at 37.14X, higher than the industry’s 7.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONTO has moved up for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
Onto Innovation currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials zvýšila výhled: její polovodičové vybavení má v kalendářním roce 2026 růst o více než 30 %, oproti dřívějším 20 %. Firma to spojuje s investicemi do AI v továrnách na čipy.
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Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) just told the Street its semiconductor equipment business will grow more than 30% in calendar 2026, an upward revision from a prior bar of 20%. That is the sound of an AI fab CapEx supercycle shifting from thesis to invoice, and the picks-and-shovel names selling into every foundry, HBM stack and gate-all-around node are the ones cashing the checks. Five stocks sit directly under that spending fire hose. Here is where the money is moving, in order.
1. Onto Innovation: The Advanced-Packaging Sleeper Onto Innovation (NYSE:ONTO) is the name most retail investors still cannot spell, but it sits at the exact chokepoint AI needs: inspection and metrology for HBM stacks, 2.5D logic and gate-all-around devices. When TSMC and SK hynix bolt an accelerator together, Onto’s Dragonfly and Atlas tools decide whether the die passes or scraps. That is process control leverage on the fastest-growing corner of the fab, well beyond commoditized deposition.
The Q1 FY26 earnings report did the talking. Revenue hit a record $291.95 million, up 9.5% year over year, with the advanced nodes business tracking roughly 25% full-year growth. Onto also locked a volume purchase agreement worth more than $240 million with a leading HBM manufacturer running through 2027. CEO Mike Plisinski flagged “the accelerating adoption of our Atlas G6 OCD system for next-generation logic and memory devices” as the tell.
The stock action agrees. ONTO closed at $321.44 on July 10 after ripping nearly 94% higher year to date and more than 212% over the past year. The analyst target sits at $369.60 with seven of seven analysts at a Buy or Strong Buy rating. The bigger surprise is what a $479 billion incumbent is telling investors about 2026.
2. Applied Materials: The Heavyweight Raising Its Own Bar Applied Materials is the broadest AI-fab exposure in the group. Deposition, ion implant, CMP, epitaxy, advanced packaging: If a wafer moves, Applied touches it. Gate-all-around transistor transitions and HBM DRAM stacking both pull disproportionate dollars per wafer, and Applied’s Precision Selective Nitride PECVD and Trillium ALD tools were built for exactly that geometry.
Q2 FY26 delivered a fourth straight beat: non-GAAP EPS of $2.86 versus $2.66 expected, revenue of $7.91 billion, up 11.4% year over year, and non-GAAP operating margin expanding to 32.1% from 30.7%. CEO Gary Dickerson bluntly raised the ceiling: “we now expect our semiconductor equipment business to grow more than 30% in calendar 2026.”
Shares reflect the move: AMAT closed at $602.50 on July 10, up 124.09% year to date. Forward P/E of 36 is not cheap, but with 28 Buy ratings against a single Strong Sell, the Street is not blinking. The next name goes narrower and hits harder on memory.
3. Lam Research: Etch, Deposition, and the HBM Stack Lam Research (NASDAQ:LRCX) owns the etch and deposition tools required to build 3D NAND and stack HBM DRAM dies without wrecking yield. Every incremental HBM3E and HBM4 layer means more Lam content per wafer. That is why the memory recovery narrative and the AI CapEx narrative converge on this ticker.
Q3 FY26 was a record quarter across the board: EPS of $1.47 beat by 7.83%, revenue hit $5.84 billion, up 23.76% year over year, and operating margin expanded to 35.0% from 33.9%. Q4 guidance calls for revenue of roughly $6.60 billion. CEO Tim Archer framed it plainly: “Lam delivered record revenue and EPS in the March quarter as AI-driven demand reshapes the semiconductor industry.”
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The stock closed at $350.33 on July 10, up 89.31% year to date and 246.66% over the last year. Analyst target is $357.77 with 29 of 35 analysts at a Buy or Strong Buy rating. Etch and deposition are the volume game. The next stock is the quality game, and it has monopoly economics.
4. KLA: The Process-Control Moat Nobody Can Bypass KLA Corporation (NASDAQ:KLAC) does one thing better than anyone: tell foundries where the defects are before a wafer becomes a $30,000 doorstop. There is no advanced node, no HBM stack and no CoWoS package being built at scale in 2026 without KLA inspection and metrology on the floor. That is the moat, and it prints margins that look like software.
Q3 FY26 revenue was $3.42 billion, up 11.5% year over year, with the Semi Process Control segment doing $3.08 billion. The kicker is profitability: TTM operating margin of 41.2% and return on equity of 95%. Capital return matched the confidence: a 17th consecutive dividend increase to $2.30 per share and a new $7 billion buyback authorization. CEO Rick Wallace called KLA “a key enabler of the AI ecosystem” across foundry/logic, memory, advanced packaging, and services.
KLAC closed at $231.52 on July 10, up nearly 82% year to date. Solid, though the real punchline is a $56 billion test company whose AI exposure just detonated.
5. Teradyne: The AI Test Kingpin Teradyne (NASDAQ:TER) tests the chips after everyone else builds them. Every accelerator, every HBM die, every networking ASIC gets validated on Teradyne automatic test equipment before it ships to a hyperscaler. Approximately 70% of Q1 revenue is tied to AI-related demand. There is no other name on this list with that level of direct AI concentration.
Q1 FY26 obliterated estimates. Revenue: $1.28 billion, up 87.04% year over year. Non-GAAP EPS: $2.56 versus $2.11 expected, a 21.15% beat. Non-GAAP operating margin expanded to 37.5% from 20.5% a year prior, and net income surged 303.36% to $398.9 million. CEO Greg Smith made the thesis explicit: “our results reflect the strength of our wafer to AI data center strategy.”
Shares closed at $359.60 on July 10, up 73.25% year to date and 264.63% over the past year. Analyst target is $423.41. Retail has noticed too: Reddit engagement spiked in mid-June with 263 upvotes and 73 comments in a single peak window on r/wallstreetbets. Robotics remains free optionality on top of the test franchise.
The Bottom Line Applied Materials raised its 2026 growth bar past 30%, KLA green-lit a $7 billion buyback, Lam printed a record quarter, Onto locked HBM into 2027, and Teradyne grew revenue 87%. That is a coordinated capex flood, well beyond a simple rotation, and the equipment vendors are the toll booths. China export controls and tariffs remain the tail risk on all five names, but with hyperscaler capex still climbing and every advanced node needing more process control per wafer, the window for reasonable entry is narrowing quarter by quarter.
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Akcie ONTO za měsíc posílily o 25,5 % díky poptávce po AI, pokročilému balení čipů a výrobě HBM. Odhady zisku pro roky 2026 a 2027 se navíc za posledních 60 dní zvýšily.
Key Takeaways Onto Innovation is gaining from AI demand, advanced packaging and HBM manufacturing growth.ONTO sees growth from Dragonfly G5, Atlas G6 and expanding advanced packaging applications.ONTO trades above industry valuation, while estimates for 2026 and 2027 have moved higher. Shares of Onto Innovation, Inc. (ONTO - Free Report) have surged 25.5% over the past month compared with the Zacks Nanotechnology industry’s growth of 24.7%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite’s plunge of 4.3% and 0.9%, respectively. The rally reflects growing investor optimism surrounding the company's exposure to AI, advanced semiconductor packaging and HBM manufacturing. As chipmakers continue to invest aggressively to meet demand for AI infrastructure, Onto Innovation has emerged as one of the beneficiaries of this trend.
Image Source: Zacks Investment Research
ONTO’s key competitors include KLA Corporation (KLAC - Free Report) , Camtek Ltd (CAMT - Free Report) and Nova Ltd. (NVMI - Free Report) . KLAC has grown 25.3%, while CAMT and NVMI plummeted 15.2% and 5.2%, respectively, in the same time frame.
After such a sharp move, however, investors naturally face an important question: Is it still worth buying ONTO, or has the rally already priced in most of the good news? Let's examine what's driving the stock higher, the company's long-term prospects and whether investors should buy, hold, or wait for a better entry point.
Advanced Packaging Becomes a Major Growth Driver for ONTOThe company sees high growth potential in advanced packaging, silicon photonics, panel-level packaging and related applications. Advanced packaging is expected to grow more than 50% in 2026, driven by the rapid expansion of AI and next-generation semiconductor technologies. Silicon photonics is already moving into volume production as AI servers require faster data transfer and lower power consumption. The panel-level packaging market, currently valued at roughly $200 million, also has significant room for expansion as the industry increasingly adopts panel-based manufacturing and chiplet architectures.
At the same time, demand for smaller and denser interconnects, with bump sizes below 6 microns, continues to rise, creating additional opportunities across the advanced packaging ecosystem. Despite ongoing supply chain headwinds, lead times remain well-managed, and companies have reported no major impact on customer commitments or delivery schedules. Onto Innovation sees a strong growth runway in the 2.5D logic market, supported by deeper engagement with a key customer and an expanding set of applications. Previous system limitations have been removed, enabling the company to pursue more than 15 applications that were previously out of reach, expanding its serviceable addressable market.
Management also indicated that its current outlook may be conservative, leaving room for upside in the second half of the year, with the momentum expected to extend into 2027 as customer adoption broadens. At the same time, the company is benefiting from a more diversified customer base, as advanced packaging customers increasingly outsource high-value process steps. By strengthening its position with outsourced manufacturing partners, ONTO is reducing customer concentration, expanding its market reach and building a more diversified and sustainable long-term revenue base.
ONTO continues strengthening its competitive edge through multiple product wins and market expansion efforts. Its Dragonfly G5 inspection system has been qualified by a top 2.5D logic customer, with shipments already ahead of schedule and demand expected to grow through 2026. Further, the Atlas G6 platform is gaining momentum in advanced-node manufacturing, with management predicting 25% growth in 2026. A new through-silicon via metrology application is set for initial shipments in the second half of 2026.
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For 2027, it anticipates outpacing wafer fab equipment industry growth through ongoing market share gains, driven by Dragonfly G5's nearly $1 billion addressable market, the continued expansion of Atlas G6 in gate-all-around applications, new surface charge metrology and panel-level packaging offerings and a strong pipeline of new applications for a wider customer base.
Risks Faced By ONTODespite its strong long-term prospects, Onto Innovation faces several risks. The semiconductor equipment industry remains highly cyclical, making customer spending vulnerable to shifts in inventory levels and end-market demand. The company also relies on a handful of large semiconductor customers, leaving results exposed to delays in capital spending. In addition, export controls and geopolitical tensions continue to create uncertainty for semiconductor equipment suppliers, potentially limiting future growth opportunities. Intense competition from larger industry players further pressures Onto Innovation to continue heavy R&D investments to maintain its technological edge.
Favorable Estimate Revision Trend for ONTOEarnings estimates for ONTO have moved up for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
Is ONTO’s Valuation Becoming Stretched?Valuation is the primary concern after ONTO's 26% rally, with semiconductor equipment stocks typically trading at rich multiples during upcycles. In terms of forward price/earnings, ONTO’s shares are trading at 41X, higher than the industry’s 8.05X.
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KLAC, CAMT and NVMI are trading at multiples of 71.69X, 43.13X and 47.12X, respectively.
Should Investors Buy, Hold or Fold ONTO Stock?Onto Innovation has become one of the more compelling semiconductor equipment companies benefiting from the AI boom. The recent rally reflects investors' growing confidence in these opportunities, but it also raises valuation expectations. While the stock may experience near-term volatility after such a sharp advance, the company's long-term fundamentals remain solid.
For existing shareholders, the recent surge reinforces the strength of Onto Innovation's business model and supports a hold stance, particularly for those with a multi-year investment horizon. For prospective investors, the company remains attractive, but initiating a position gradually or waiting for a pullback could offer a more balanced entry point.
ONTO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KLA zvýšila výhled tržeb z pokročilého balení polovodičů na zhruba 1 miliardu USD v roce 2026. Onto Innovation očekává v roce 2026 růst tržeb o více než 30 %.
Key Takeaways KLA targets $1B in advanced packaging process control revenue in 2026, above prior expectations.Onto expects 30% revenue growth in 2026, aided by AI packaging and HBM demand.ONTO gained 27.3% in one month and trades at 39.61X forward earnings versus KLAC at 52.71X. The semiconductor industry is entering a major investment cycle, fueled by AI, advanced packaging, HBM and next-generation chip manufacturing. Among them, Onto Innovation, Inc. (ONTO - Free Report) and KLA Corporation (KLAC - Free Report) stand out as leaders in process control, inspection and metrology. KLA is the dominant industry player, while Onto Innovation is a fast-growing specialist focused on advanced packaging and semiconductor inspection technologies, making them a highly relevant comparison for investors.
Per a report from Fortune Business Insights, the global semiconductor metrology and inspection equipment market size is estimated to go from $15.84 billion in 2026 to $27.56 billion by 2034, at a CAGR of 7.2%. The semiconductor equipment market is growing as AI chips require increasingly precise manufacturing. Key demand drivers include advanced packaging, chiplet architectures, HBM, 2.5D/3D integration, automotive semiconductors and AI accelerator production. KLA benefits across leading-edge nodes, while ONTO is leveraged for advanced packaging investments.
Although both companies operate in similar markets, they differ significantly in size, product portfolio, customer exposure and growth prospects. Investors seeking exposure to semiconductor equipment must decide whether they prefer the stability of an established industry giant like KLA or the higher-growth potential offered by Onto Innovation.
The Case for KLACKLA is the global leader in semiconductor process control, benefiting from advanced inspection and metrology technologies, strong customer relationships and high switching costs as chip manufacturing becomes increasingly complex. KLA continues to view AI as a major growth driver and a key contributor to its accelerating momentum. The company is experiencing stronger-than-expected traction in advanced packaging, prompting it to raise its outlook for advanced packaging-related semiconductor process control revenue from approximately $635 million in 2025 to around $1 billion in 2026, which is significantly above previous expectations.
Since 2021, KLA has expanded its process control market share by 360 basis points and now holds a position roughly seven times larger than its nearest competitor. It expects accelerating wafer fabrication equipment growth in 2026 and 2027, driven by increasing demand for process control across leading-edge logic, HBM, advanced packaging, faster product cycles and rising semiconductor design complexity. These trends are increasing the need for KLA’s solutions to improve R&D efficiency, support fab ramps and optimize manufacturing yields.
KLA’s increasingly advanced systems and longer tool lifecycles are strengthening its high-margin services business, creating a predictable long-term growth driver as customers demand greater tool performance and uptime. Reflecting this momentum, the company introduced a 2030 financial model targeting 13-17% revenue CAGR, raised its services growth outlook to 13-15%, increased its capital return target to more than 90% of free cash flow and announced its 17th consecutive dividend increase along with a new $7 billion share repurchase authorization. KLA expects to outpace the broader wafer equipment market through 2030, supported by the growing importance of process control across semiconductor manufacturing.
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Despite the positive outlook, investors should monitor several risks. Emerging technologies such as electron-beam inspection could alter competitive dynamics in process control, requiring KLA to increase R&D spending if competing solutions offer superior performance or cost efficiency. Additionally, elevated component costs, including DRAM used in system image-processing computers, are expected to pressure gross margins through at least 2026. While supply remains secure, unfavorable product mix shifts or additional tariffs could further weigh on profitability and operating leverage.
The Case for ONTORather than competing directly across KLA's entire product lineup, Onto Innovation focuses on niche markets experiencing rapid growth, especially those benefiting from AI chips and heterogeneous integration. Its smaller size allows it to grow faster when semiconductor capital spending accelerates. It has delivered strong revenue growth, driven by AI-related packaging demand, advanced inspection solutions, rising customer adoption, growing software revenue and expansion into specialty semiconductor markets. Its smaller revenue base also lets new customer wins generate an outsized percentage growth.
ONTO expects momentum to speed up in the second half of the year, supported by customer expansions, increasing adoption of new products and a growing backlog, leading to more than 15% sequential revenue growth and over 30% revenue growth in 2026. Demand is fueled by AI and high-performance computing applications, while the company's integrated optical process control and software solutions, strengthened through its strategic collaboration with Rigaku, enhance its value proposition for semiconductor manufacturers. As semiconductor manufacturers adopt more complex materials and 3D structures, management anticipates rising demand for hybrid metrology solutions that merge optical and X-ray technologies.
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Its Ai Diffract software, developed with Rigaku, has already secured two competitive wins and multiple customer evaluations, demonstrating its ability to address advanced process control challenges. The collaboration opens new revenue opportunities via software licensing and integrated metrology solutions, while Onto Innovation's 27% investment in Rigaku reinforces long-term alignment and access to next-generation X-ray technology. Combined, these capabilities position Onto Innovation to leverage growing demand in advanced packaging and cutting-edge semiconductor manufacturing.
Furthermore, ONTO’s Dragonfly platform is becoming a major growth driver, supported by a more than $240 million HBM-related volume purchase agreement through 2027 and expanding adoption across AI-driven advanced packaging applications. Recent customer qualifications, strong order momentum and growing demand for 3D inspection technologies are strengthening its position in high-bandwidth memory and advanced packaging markets, with the company expecting advanced packaging revenue to grow more than 50% in 2026.
Despite strong growth prospects, Onto Innovation faces risks from cyclical semiconductor spending, intense competition, customer concentration and geopolitical uncertainties in Asia. The company must continue innovating to maintain its market position, while ongoing supply chain constraints, particularly in precision optics, could adversely impact revenue growth and profitability.
Share Performance Trajectory for ONTO & KLACIn the past month, ONTO stock has surged 27.3% while KLAC has gained 37.5%.
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Valuation: Discount vs. PremiumValuation often determines future investment returns. In terms of forward price/earnings, ONTO shares are trading at 39.61X, lower than KLAC’s 52.71X.
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How the Zacks Consensus Estimate Compares for ONTO & KLACEarnings estimates for ONTO have moved up for both 2026 and 2027 over the past 60 days.
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For KLAC estimates have moved up for both 2026 and 2027 over the past 60 days as well.
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ONTO vs. KLAC: Which Stock is the Better Pick?Both ONTO and KLAC currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies are well-positioned to benefit from the long-term expansion of semiconductor manufacturing, but they appeal to different types of investors. KLA is a strong choice for conservative investors, offering market leadership, solid profitability, recurring revenue and lower risk. Onto Innovation provides higher growth potential through its exposure to advanced packaging and AI semiconductor trends, but with greater volatility. Overall, KLA is better suited for stability and long-term consistency, while Onto Innovation appeals to investors seeking higher-risk, higher-reward opportunities.
Nonetheless, holding both stocks at present could provide balanced exposure to semiconductor industry growth, combining KLA’s stability with Onto Innovation’s higher growth potential.
