Track market-moving stories before they get noisy

SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of an Investigation Concerning Possible Breaches of Fiduciary Duties by Certain Officers and Directors of Onto Innovation Inc. (NYSE: ONTO) PR Newswire

NEW YORK, Sept. 1, 2026

, /PRNewswire/ -- Levi & Korsinsky announces that it has commenced an investigation of Onto Innovation Inc. (NYSE: ONTO) concerning possible breaches of fiduciary duties. If you are a current shareholder of ONTO, you can request additional information here:

https://zlk.com/cases/onto-innovation-inc-class-action-lawsuit-onto

or contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212) 363-7500. There is no cost or obligation to you.

Levi & Korsinsky is a nationally recognized firm with offices in New York, Connecticut, California, and Washington, D.C. The firm's attorneys have extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities lawsuits and recovering hundreds of millions of dollars for aggrieved shareholders. For more information, please feel free to contact the firm. Attorney advertising. Prior results do not guarantee similar outcomes.

Joseph E. Levi, Esq.
Levi & Korsinsky, LLP
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/shareholder-alert-levi--korsinsky-llp-notifies-shareholders-of-an-investigation-concerning-possible-breaches-of-fiduciary-duties-by-certain-officers-and-directors-of-onto-innovation-inc-nyse-onto-302866931.html

SOURCE Levi & Korsinsky, LLP

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 31:

Onto Innovation Inc. (ONTO - Free Report) : This semiconductor equipment company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

Onto Innovation's shares gained 5.9% over the last three months compared with the S&P 500’s decline of 1.8%. The company possesses a Momentum Score of A.

Quaker Chemical Corporation (KWR - Free Report) : This industrial process fluids company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.6% over the last 60 days.

Quaker's shares gained 16.8% over the last three months compared with the S&P 500’s decline of 1.8%. The company possesses a Momentum Score of A.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) : This restaurant and retail company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 108.4% over the last 60 days.

Cracker Barrel Old Country's shares gained 59.5% over the last three months compared with the S&P 500’s decline of 1.8%. The company possesses a Momentum Score of B.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Onto Innovation (ONTO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Onto Innovation currently has an average brokerage recommendation (ABR) of 1.12, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 13 brokerage firms. An ABR of 1.12 approximates between Strong Buy and Buy.

Of the 13 recommendations that derive the current ABR, 11 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 84.6% and 15.4% of all recommendations.

Brokerage Recommendation Trends for ONTO

Check price target & stock forecast for Onto Innovation here>>>

While the ABR calls for buying Onto Innovation, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is ONTO Worth Investing In?Looking at the earnings estimate revisions for Onto Innovation, the Zacks Consensus Estimate for the current year has increased 10.5% over the past month to $7.88.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Onto Innovation. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Onto Innovation may serve as a useful guide for investors.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Envista Holdings Corporation (NVST - Free Report) : This company that designs, produces, markets, and distributes dental products has seen the Zacks Consensus Estimate for its current year earnings increasing 7.8% over the last 60 days.

Virtu Financial, Inc. (VIRT - Free Report) : This financial services company has seen the Zacks Consensus Estimate for its current year earnings increasing 13.7% over the last 60 days.

Onto Innovation Inc. (ONTO - Free Report) : This manufacturer of process control tools for optical metrology has seen the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

Horace Mann Educators Corporation (HMN - Free Report) : This insurance holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.2% over the last 60 days.

Provident Financial Holdings, Inc. (PROV - Free Report) : This bank holding company for Provident Savings Bank, F.S.B. has seen the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Onto Innovation is rated Buy, supported by robust process-control demand in advanced semiconductor packaging and expanding product breadth. ONTO's Q2 revenue rose 35% YoY to $343M, with non-GAAP operating margin at 30% and EPS at $1.93; management guides for accelerating growth in H2. Backlog conversion, Dragonfly G5 adoption, and integration of Semilab USA and Rigaku partnerships are key to sustaining above-market earnings growth.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 21:

Lumentum Holdings Inc. (LITE - Free Report) : This optical and photonic products company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.

Lumentum’s shares gained 30.4% over the last six months compared with the S&P 500’s advance of 11.8%. The company possesses a Momentum Score  of A.

Onto Innovation Inc. (ONTO - Free Report) : This manufacturer of process control tools for optical metrology has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

Onto’s shares gained 13.9% over the last three months compared with the S&P 500’s advance of 2.3%. The company possesses a Momentum Score of A.

Assembly Biosciences, Inc. (ASMB - Free Report) : This clinical-stage biotechnology company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 20% over the last 60 days.

Assembly’s shares gained 18.3% over the last three months compared with the S&P 500’s advance of 2.3%. The company possesses a Momentum Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Momentum score and how it is calculated here.

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

(Free Report)

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.

Further Reading Five stocks we like better than Onto Innovation Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think?

Receive News & Ratings for Onto Innovation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Onto Innovation and related companies with MarketBeat.com's FREE daily email newsletter.

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.

Image Source: Zacks Investment Research

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.

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.

Image Source: Zacks Investment Research

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 (ONTO - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this maker of semiconductor manufacturing equipment is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Onto Innovation, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $2.20 per share for the current quarter represents a change of +139.1% from the number reported a year ago.

Over the last 30 days, five estimates have moved higher for Onto Innovation compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 14.13%.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $7.88 per share represents a change of +59.5% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Onto Innovation. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 10.47%.

Favorable Zacks RankThe promising estimate revisions have helped Onto Innovation earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Onto Innovation because of its solid estimate revisions, as evident from the stock's 10.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Shares of Onto Innovation (NYSE:ONTO | ONTO Price Prediction) are trading higher midday Tuesday, up 5.9% to $308.51 from Monday’s close of $291.35. The semiconductor process control name is riding a positive AI supply chain read-through from peer Camtek’s blowout quarter and a broader bid across the group.

Peer Camtek’s Record Quarter Lights the Rally The primary catalyst is a direct read-through from Camtek (NASDAQ:CAMT), which reported Q2 2026 results on August 10, 2026. Camtek posted record revenue of $133.24 million, topping the $130.19 million consensus, with non-GAAP EPS of $0.78 versus the $0.76 estimate.

The bigger tell for Onto investors was the order book. CEO Rafi Amit disclosed that year-to-date bookings have crossed $600 million, with deliveries stretching into 2027. Camtek guided Q3 revenue to $158 million to $160 million, roughly 20% sequential growth, and flagged Advanced Packaging revenue growing approximately 70% between Q1 and Q4 2026. Amit noted the surge is driven by AI-linked HBM memory and chiplet architectures. That is the same tailwind powering Onto’s Dragonfly and Atlas platforms.

Onto’s Own Setup Was Already Bullish Camtek is running into strength that Onto had already flagged in its own May 5, 2026 Q1 FY2026 8-K filing. Onto delivered record revenue of $291.95 million, up 9.5% year over year, and non-GAAP EPS of $1.42, in line with estimates. Advanced nodes revenue climbed 13% sequentially.

Management guided Q2 FY2026 revenue to $320 million to $330 million, with non-GAAP EPS of $1.65 to $1.73 and non-GAAP operating margin of 28% to 28.6%. The advanced nodes segment is positioned for roughly 25% full-year growth. CEO Mike Plisinski pointed to the Dragonfly G5 inspection system landing qualifications at both a 2.5D logic customer and an HBM customer, alongside a second logic win for the Atlas G6 metrology system in gate-all-around. Those are the exact process nodes where AI capacity is being built.

NVIDIA’s AI Financing Announcement Adds Fuel Sentiment across the AI supply chain also benefited from reports Tuesday that NVIDIA (NASDAQ:NVDA) is partnering with Apollo, BlackRock, and other Wall Street firms on a financing platform reportedly aimed at mobilizing more than $500 billion in third-party capital for AI infrastructure. Wells Fargo maintained an Overweight rating with a $315 price target, and analysts described the move as reinforcing NVIDIA’s position and turning compute into an investable asset class. If that capital flows through into more data center buildouts, the metrology and inspection tools that qualify HBM stacks and 2.5D logic packages, Onto’s core business, sit directly in the path.

Momentum Context Onto’s move today extends what has already been a strong run. Shares are up roughly 85% year to date and roughly 183% over the past year through Monday’s close. The market cap sits near $15.14 billion. Camtek, for its part, is up roughly 49% year to date and jumped 13.1% over the past week heading into today. Other stocks in the semiconductor and advanced packaging space are also rallying today. Cohu (Nasdaq: COHU) is up 4.8%. The company offers optical inspection and metrology, which gets a read-through from Camtek’s results.

What to Watch The next major data point is Onto’s Q2 FY2026 earnings report, where investors will be looking for confirmation of the $320 million to $330 million revenue guide and any commentary on advanced packaging order flow that would echo Camtek’s $600 million YTD bookings tally. Between now and then, keep an eye on whether today’s gains hold into the close and whether the stock reclaims its recent highs.

Contact [email protected] for any questions or corrections.

WILMINGTON, Mass.--(BUSINESS WIRE)---- $ONTO--Onto Innovation completes strategic investment in Rigaku, strengthening collaboration on next-generation X-ray process control.

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.

Get Onto Innovation alerts:

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].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Onto Innovation Right Now?Before you consider Onto Innovation, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Onto Innovation wasn't on the list.

While Onto Innovation currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

Key Takeaways Onto Innovation now expects second-half revenue growth of at least 25%, up from its prior 15% outlook.Backlog exceeds $1.1B, with 30%-40% tied to 2027 as customers secure AI packaging and chipmaking capacity.Advanced packaging growth outlook rose to 80% for 2026, driven by HBM, OSAT volumes and Dragonfly adoption. Onto Innovation Inc. (ONTO - Free Report) used its second-quarter 2026 earnings call to raise expectations for the second half, citing stronger advanced packaging demand, broader advanced-node adoption and record customer visibility.

Management's key forward signal was backlog above $1.1 billion, with orders increasingly reaching into 2027 as customers secure capacity for AI-driven packaging and next-generation semiconductor production.

ONTO Raises Second-Half Growth OutlookChief executive officer Michael Plisinski said second-half revenues should grow 25% or more from the first half, up from the prior 15% expectation, with fourth-quarter revenues above the third quarter.

Chief financial officer Brian Roberts guided third-quarter revenues to $380-$400 million. He said the 25% second-half growth level serves as a floor, putting fourth-quarter revenues in the low $400 million at the third-quarter midpoint.

CFO Roberts said margins should continue expanding. The third-quarter outlook calls for gross margin of 57.3% to 57.8% and non-GAAP operating margin of 31.5% to 32.5%, while non-GAAP EPS is projected at $2.18 to $2.38.

ONTO Targets Further Margin LeverageONTO’s second-quarter non-GAAP EPS of $1.93 exceeded the Zacks Consensus Estimate of $1.68, while revenues of $343.13 million topped the Zacks Consensus Estimate of $325.6 million. Non-GAAP gross margin reached 57%, and operating margin was 30%.

Plisinski expects 350 basis points of gross-margin expansion and more than 750 basis points of operating-margin improvement in 2026. Roberts tied much of the progress to extended factories and operating productivity.

A B. Riley Securities analyst asked about 2027 margin potential. Roberts said a larger Dragonfly G5 mix can support gross margin through higher average selling prices, while extended factories should continue scaling.

Onto Sees Backlog Extending Into 2027Plisinski said customers are committing earlier than historical norms to secure supply. He estimated 60% to 70% of backlog is tied to 2026, and 30% to 40% covers 2027.

Plisinski highlighted more than $200 million of Dragonfly orders from one OSAT partner, with most deliveries scheduled for 2027. Demand is strongest in HBM and heterogeneous packaging for AI applications.

An Oppenheimer analyst asked whether backlog growth was still accelerating. Plisinski said large orders arrive unevenly around volume purchase agreements, but backlog is growing while shipments also increase.

ONTO Lifts Advanced Packaging ExpectationsPlisinski raised the 2026 advanced packaging growth outlook to about 80% from 50% last quarter, citing stronger HBM demand, higher OSAT volumes and broader Dragonfly adoption across 2.5D logic and heterogeneous packaging.

Plisinski also expects panel-level packaging revenues to more than double year over year, supported by JetStep lithography, Firefly process control and Discover software.

Silicon photonics adds another growth vector. Plisinski said Onto has received more than $50 million of related orders, with roughly two-thirds scheduled for 2027, and expects its served addressable market to exceed $500 million by 2030.

Onto Broadens Advanced-Node AdoptionRoberts said advanced-node revenues rose 50% sequentially to about $120 million. Memory represented about 60% of the total and grew roughly 60% sequentially, while logic increased more than 40%.

Plisinski credited expanded Atlas G6 adoption, including new DRAM customer demand. Multiple systems are expected to ship to a major DRAM customer in the second half, while Iris films and integrated metrology are on track for record 2026 revenues.

A Jefferies analyst asked about the breadth of the gains. Plisinski said growth spanned NAND, DRAM and logic, with Atlas G6 adoption expanding into new applications and DRAM customers.

Onto Keeps Focus on Execution and VisibilityPlisinski said management was not ready to issue a formal 2027 plan, but identified advanced packaging, broader metrology adoption, silicon photonics and the Rigaku X-ray partnership as growth opportunities.

Plisinski also said Onto is not capacity constrained after adding extended-factory capability comparable with its previously stated $2 billion in-house capacity. Management is pairing that flexibility with supply-chain management and targeted product investment.

ONTO's Zacks Rank and Style Score SignalsONTO sports a Zacks Rank #1 (Strong Buy), the top rating in a system designed to identify stronger one-to-three-month performance potential through earnings estimate revisions. Its Value Score is F, Growth Score is D, Momentum Score is F and VGM Score is F. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks framework treats Style Scores as a complement to the Rank, with A and B scores providing stronger confirmation for top-ranked stocks. ONTO's combination is mixed, and the Zacks Rank can change as analysts revise estimates after the just-reported results.

Key Takeaways Onto Innovation posted record Q2 revenue, beat EPS estimates and lifted its second-half 2026 outlook. ONTO backlog topped $1B for the first time, supported by AI infrastructure and semiconductor investments. Onto Innovation expects Q3 revenue of $380M-$400M with further margin expansion and EPS growth Onto Innovation Inc. (ONTO - Free Report) reported second-quarter 2026 earnings per share of $1.93, which exceeded the Zacks Consensus Estimate by 15%. The bottom line also compared favorably with the prior-year quarter's $1.25. Management expected non-GAAP EPS between $1.65 and $1.73.

Onto Innovation reported second-quarter revenue of $343.1 million, marking a 35.3% year-over-year increase. Revenue also rose nearly 18% sequentially, setting a new record for the company's highest quarterly revenue. The top line surpassed both management’s guidance ($320–$330 million) and the Zacks Consensus Estimate of $325.6 million. Key factors driving this strong performance included record revenue from Advanced Nodes, record sales in Specialty Devices, robust growth in Advanced Packaging solutions and ongoing investments by leading logic and memory chip manufacturers.

According to management, customer visibility remains high as semiconductor companies continue investing in multi-year expansion initiatives. One of the most notable highlights was the company's backlog surpassing $1 billion for the first time. The company expects these investments to support solid second-half 2026 revenue, sustained AI infrastructure spending and demand that extends well into 2027. The record backlog offers greater revenue visibility and indicates customer confidence despite broader macroeconomic uncertainties.

Following the successful launch of Dragonfly G5, Onto Innovation is seeing record demand across a broader customer base, prompting it to raise its full-year advanced packaging growth outlook to about 80% from 50%. Demand is being driven by HBM manufacturers and OSATs supporting AI-focused heterogeneous packaging. During the quarter, the company secured more than $200 million in Dragonfly orders from a single OSAT customer, with most deliveries scheduled for 2027.

Advanced Packaging and Specialty Devices accounted for nearly half of second-quarter revenue. Dragonfly inspection revenue rose 30% sequentially, driven by 2.5D and HBM demand. At the same time, other packaging and specialty segments, including power and SDI, declined as expected but are projected to recover to first-quarter levels next quarter.

Advanced Nodes revenue increased approximately 50% sequentially to $120 million, reflecting stronger customer spending on next-generation semiconductor technologies required for AI processors and high-performance computing chips. In this category, memory accounted for around 60% of revenue and increased about 60% sequentially, while logic advanced more than 40%.

Software and services accounted for the remainder of the second quarter revenue.

Margins Improve Across the BoardNon-GAAP gross margin was 57%, up 250 basis points (bps) year over year and 130 bps sequentially, exceeding management's initial target of 200 bps of margin expansion for 2026.

Non-GAAP operating income rose to $102.8 million from $65.6 million in the prior-year quarter. Driven by stronger operating leverage, Onto Innovation's operating margin expanded to 30%, up nearly 500 bps from the beginning of the year.

Total operating expenses for the quarter were $119.7 million compared with $89.9 million in the previous-year quarter.

LiquidityAs of June 30, 2026, the company had $1.9 billion in cash, cash equivalents and marketable securities and $271.6 million of total current liabilities compared with $654.2 million and $214.5 million, respectively, as of March 31.

Accounts receivable were $337.4 million.

Onto Innovation generated $62 million in cash from operations during the quarter, representing just over 100% of net income.

Q3 2026 Outlook Remains EncouragingDriven by robust demand and strong execution, Onto Innovation raised its second-half 2026 revenue, margin and EPS outlook. Building on a strong first half, ONTO expects second-half revenue to grow more than 25%, with third-quarter revenue of $380–$400 million and further growth in the fourth quarter. At the midpoint, revenue guidance implies another sequential increase of roughly 14%, suggesting demand remains exceptionally strong.

Despite ongoing cost headwinds, including higher material, fuel and freight expenses, Onto Innovation expects gross margin to expand by another 50 bps in each of third and fourth quarters. The company expects gross margin between 57.3% and 57.8%.

Onto expects operating margin to improve by 200 bps to 31.5%-32.5% in the third quarter and exceed 33% by year-end. Per management, Onto Innovation is on track to deliver 350 bps of gross margin expansion and more than 750 bps of operating margin improvement in 2026, with further gains expected in 2027.

It further expects non-GAAP EPS between $2.18 and $2.38, GAAP EPS of $1.54 to $1.70 and GAAP operating margin of 21.4% to 22.4%.

ONTO’s Zacks RankOnto Innovation currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent PerformancesWatts Water Technologies, Inc. (WTS - Free Report) reported second-quarter 2026 adjusted earnings of $3.66 per share, up 18.4% from $3.09 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.34 by 9.6%. Net sales rose 18.6% year over year to $763.2 million and topped the consensus mark of $726 million by 5.1%. Organic sales advanced 12.2%, driven by favorable pricing, higher volumes and data center growth. Year-to-date data center sales represented 8% of total sales.

TELUS Corporation (TU - Free Report) reported second-quarter 2026 adjusted earnings per share of C$0.16, down 27% from C$0.22 a year ago. Adjusted net income fell 26% to C$254 million, while operating revenues and other income declined 3% to C$4,929 million, pressured by weaker TELUS Digital results, lower mobile equipment revenues and reduced other income.

Fortive Corporation (FTV - Free Report) reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments.

Onto Innovation (ONTO - Free Report) came out with quarterly earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.88%. A quarter ago, it was expected that this maker of semiconductor manufacturing equipment would post earnings of $1.38 per share when it actually produced earnings of $1.42, delivering a surprise of +2.9%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Onto Innovation, which belongs to the Zacks Nanotechnology industry, posted revenues of $343.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.38%. This compares to year-ago revenues of $253.6 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Onto Innovation shares have added about 74.8% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Onto Innovation?While Onto Innovation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Onto Innovation was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.92 on $346.37 million in revenues for the coming quarter and $7.14 on $1.33 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Nanotechnology is currently in the top 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Computer and Technology sector, ServiceTitan Inc. (TTAN - Free Report) , has yet to report results for the quarter ended July 2026.

This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter.

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

Wall Street analysts expect Onto Innovation (ONTO - Free Report) to post quarterly earnings of $1.68 per share in its upcoming report, which indicates a year-over-year increase of 34.4%. Revenues are expected to be $325.6 million, up 28.4% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Onto Innovation metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenue- Systems and software' will reach $272.02 million. The estimate suggests a change of +26.8% year over year.

The collective assessment of analysts points to an estimated 'Revenue- Service' of $24.00 million. The estimate suggests a change of +24.7% year over year.

Analysts predict that the 'Revenue- Parts' will reach $30.13 million. The estimate indicates a year-over-year change of +51.8%.

The average prediction of analysts places 'Geographic Revenue- China' at $26.93 million. The estimate points to a change of +55.3% from the year-ago quarter.

Based on the collective assessment of analysts, 'Geographic Revenue- Japan' should arrive at $32.78 million. The estimate indicates a change of -2.9% from the prior-year quarter.

Analysts expect 'Geographic Revenue- United States' to come in at $43.92 million. The estimate indicates a year-over-year change of +59.4%.

The consensus estimate for 'Geographic Revenue- Taiwan' stands at $101.27 million. The estimate indicates a change of +54.3% from the prior-year quarter.

Analysts forecast 'Geographic Revenue- South Korea' to reach $81.15 million. The estimate indicates a year-over-year change of -1.8%.

View all Key Company Metrics for Onto Innovation here>>>

Over the past month, shares of Onto Innovation have returned -11.6% versus the Zacks S&P 500 composite's +1.7% change. Currently, ONTO carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Posted by Defense World Staff on Aug 4th, 2026

California State Teachers Retirement System lifted its position in shares of Onto Innovation Inc. (NYSE:ONTO – Free Report) by 22.1% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 56,775 shares of the semiconductor company’s stock after acquiring an additional 10,271 shares during the quarter. California State Teachers Retirement System owned approximately 0.11% of Onto Innovation worth $11,643,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Root Financial Partners LLC boosted its position in Onto Innovation by 71.2% during the fourth quarter. Root Financial Partners LLC now owns 178 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 74 shares during the period. Transamerica Financial Advisors LLC increased its stake in shares of Onto Innovation by 188.5% in the fourth quarter. Transamerica Financial Advisors LLC now owns 176 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 115 shares in the last quarter. Millstone Evans Group LLC raised its position in shares of Onto Innovation by 147.8% in the first quarter. Millstone Evans Group LLC now owns 166 shares of the semiconductor company’s stock valued at $34,000 after purchasing an additional 99 shares during the period. CIBC Private Wealth Group LLC raised its position in shares of Onto Innovation by 109.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 245 shares of the semiconductor company’s stock valued at $39,000 after purchasing an additional 128 shares during the period. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of Onto Innovation during the 4th quarter valued at approximately $39,000. Hedge funds and other institutional investors own 98.35% of the company’s stock.

Wall Street Analyst Weigh In Several research analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Onto Innovation in a report on Friday, June 5th. They issued a “buy” rating and a $350.00 price objective for the company. Weiss Ratings restated a “hold (c)” rating on shares of Onto Innovation in a research report on Friday, July 24th. Needham & Company LLC raised their price target on Onto Innovation from $320.00 to $330.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Wall Street Zen lowered Onto Innovation from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Morgan Stanley initiated coverage on Onto Innovation in a research report on Sunday, June 14th. They issued an “overweight” rating and a $371.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $339.60.

Get Our Latest Analysis on Onto Innovation

Onto Innovation Price Performance Shares of NYSE:ONTO opened at $269.49 on Tuesday. The firm has a fifty day moving average price of $295.32 and a two-hundred day moving average price of $254.31. Onto Innovation Inc. has a one year low of $89.40 and a one year high of $386.46. The company has a market cap of $13.41 billion, a price-to-earnings ratio of 125.93, a PEG ratio of 1.06 and a beta of 1.55.

Onto Innovation (NYSE:ONTO – Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The semiconductor company reported $1.42 earnings per share for the quarter, topping the consensus estimate of $1.38 by $0.04. Onto Innovation had a net margin of 10.32% and a return on equity of 11.68%. The firm had revenue of $291.95 million for the quarter, compared to analysts’ expectations of $292.00 million. During the same quarter in the prior year, the firm posted $1.51 earnings per share. The business’s quarterly revenue was up 9.5% on a year-over-year basis. Equities research analysts expect that Onto Innovation Inc. will post 7.14 EPS for the current fiscal year.

Onto Innovation Company Profile (Free Report)

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.

Further Reading Five stocks we like better than Onto Innovation SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks?

Receive News & Ratings for Onto Innovation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Onto Innovation and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEFinancial Comparison: Brookfield (NYSE:BN) and Brewin Dolphin (OTCMKTS:BDNHF)

NEXT HEADLINE »Head to Head Comparison: Gamma Communications (OTCMKTS:GAMCF) & ATN International (NASDAQ:ATNI)

Onto Innovation (ONTO - Free Report) ended the recent trading session at $241.89, demonstrating a -7.79% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.21%. Meanwhile, the Dow experienced a rise of 1.03%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

The maker of semiconductor manufacturing equipment's shares have seen a decrease of 25.36% over the last month, not keeping up with the Computer and Technology sector's loss of 2.91% and the S&P 500's gain of 1.7%.

The investment community will be closely monitoring the performance of Onto Innovation in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 34.4% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $325.6 million, indicating a 28.39% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.14 per share and a revenue of $1.33 billion, representing changes of +44.53% and +32.56%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Onto Innovation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Onto Innovation currently has a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Onto Innovation is currently exchanging hands at a Forward P/E ratio of 36.76. This denotes no noticeable deviation relative to the industry average Forward P/E of 36.76.

We can also see that ONTO currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Nanotechnology was holding an average PEG ratio of 1.07 at yesterday's closing price.

The Nanotechnology industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 1, this industry ranks in the top 1% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

On July 27, 2026, Onto Innovation Inc (ONTO) shares fell 3.8% to $262.33. This decline continues a downward trend, with the stock down 5.8% over the past week a

Posted by Defense World Staff on Jul 27th, 2026

Entropy Technologies LP bought a new stake in Onto Innovation Inc. (NYSE:ONTO – Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 14,031 shares of the semiconductor company’s stock, valued at approximately $2,877,000.

Several other hedge funds have also bought and sold shares of the stock. CWM LLC lifted its holdings in shares of Onto Innovation by 361.2% during the 4th quarter. CWM LLC now owns 20,068 shares of the semiconductor company’s stock worth $3,168,000 after acquiring an additional 15,717 shares during the last quarter. M&T Bank Corp grew its position in Onto Innovation by 11,228.9% in the fourth quarter. M&T Bank Corp now owns 341,112 shares of the semiconductor company’s stock worth $53,848,000 after acquiring an additional 338,101 shares in the last quarter. Fideuram Asset Management Ireland dac bought a new position in Onto Innovation in the fourth quarter valued at $1,583,000. Allspring Global Investments Holdings LLC increased its stake in Onto Innovation by 148.8% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 271,610 shares of the semiconductor company’s stock valued at $45,052,000 after acquiring an additional 162,433 shares during the last quarter. Finally, Retirement Systems of Alabama increased its stake in Onto Innovation by 27.9% in the fourth quarter. Retirement Systems of Alabama now owns 75,808 shares of the semiconductor company’s stock valued at $11,967,000 after acquiring an additional 16,559 shares during the last quarter. 98.35% of the stock is currently owned by institutional investors.

Onto Innovation Price Performance ONTO opened at $271.83 on Monday. The stock’s 50 day simple moving average is $296.34 and its 200 day simple moving average is $251.71. Onto Innovation Inc. has a 1 year low of $89.40 and a 1 year high of $386.46. The firm has a market cap of $13.52 billion, a price-to-earnings ratio of 127.02, a PEG ratio of 1.11 and a beta of 1.55.

Onto Innovation (NYSE:ONTO – Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.38 by $0.04. The firm had revenue of $291.95 million during the quarter, compared to the consensus estimate of $292.00 million. Onto Innovation had a return on equity of 11.68% and a net margin of 10.32%.The business’s revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.51 earnings per share. As a group, sell-side analysts anticipate that Onto Innovation Inc. will post 7.14 EPS for the current year.

Analyst Upgrades and Downgrades ONTO has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft initiated coverage on Onto Innovation in a research note on Friday, June 5th. They set a “buy” rating and a $350.00 price target for the company. Oppenheimer increased their price objective on Onto Innovation from $370.00 to $450.00 and gave the company an “outperform” rating in a research report on Monday, June 22nd. Weiss Ratings raised Onto Innovation from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, April 27th. Wall Street Zen upgraded Onto Innovation from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Finally, Zacks Research upgraded Onto Innovation from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Onto Innovation currently has a consensus rating of “Buy” and an average price target of $339.60.

Check Out Our Latest Report on Onto Innovation

Onto Innovation Profile (Free Report)

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.

Featured Articles Five stocks we like better than Onto Innovation RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding ONTO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Onto Innovation Inc. (NYSE:ONTO – Free Report).

Receive News & Ratings for Onto Innovation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Onto Innovation and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEDai ichi Life Insurance Company Ltd Has $1.35 Million Stock Holdings in Expedia Group, Inc. $EXPE

NEXT HEADLINE »Dai ichi Life Insurance Company Ltd Sells 8,217 Shares of Blackstone Inc. $BX

Onto Innovation (ONTO - Free Report) ended the recent trading session at $295.25, demonstrating a -1.27% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.14%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.57%.

The maker of semiconductor manufacturing equipment's stock has dropped by 5.33% in the past month, falling short of the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.

The investment community will be closely monitoring the performance of Onto Innovation in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. In that report, analysts expect Onto Innovation to post earnings of $1.68 per share. This would mark year-over-year growth of 34.4%. In the meantime, our current consensus estimate forecasts the revenue to be $325.6 million, indicating a 28.39% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.14 per share and a revenue of $1.33 billion, signifying shifts of +44.53% and +32.56%, respectively, from the last year.

Any recent changes to analyst estimates for Onto Innovation should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Onto Innovation boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Onto Innovation is currently being traded at a Forward P/E ratio of 41.9. This expresses no noticeable deviation compared to the average Forward P/E of 41.9 of its industry.

It is also worth noting that ONTO currently has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Nanotechnology was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Nanotechnology industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Posted by Defense World Staff on Jul 21st, 2026

Bank of New York Mellon Corp reduced its holdings in Onto Innovation Inc. (NYSE:ONTO – Free Report) by 5.5% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 567,805 shares of the semiconductor company’s stock after selling 32,988 shares during the quarter. Bank of New York Mellon Corp owned approximately 1.14% of Onto Innovation worth $116,440,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the business. Eagle Rock Investment Company LLC raised its holdings in shares of Onto Innovation by 99.3% during the fourth quarter. Eagle Rock Investment Company LLC now owns 10,037 shares of the semiconductor company’s stock valued at $1,584,000 after purchasing an additional 5,000 shares during the period. CWM LLC grew its stake in shares of Onto Innovation by 361.2% in the 4th quarter. CWM LLC now owns 20,068 shares of the semiconductor company’s stock valued at $3,168,000 after buying an additional 15,717 shares during the period. M&T Bank Corp grew its stake in shares of Onto Innovation by 11,228.9% in the 4th quarter. M&T Bank Corp now owns 341,112 shares of the semiconductor company’s stock valued at $53,848,000 after buying an additional 338,101 shares during the period. Fideuram Asset Management Ireland dac bought a new stake in Onto Innovation in the 4th quarter valued at about $1,583,000. Finally, Allspring Global Investments Holdings LLC increased its position in Onto Innovation by 148.8% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 271,610 shares of the semiconductor company’s stock valued at $45,052,000 after buying an additional 162,433 shares in the last quarter. Institutional investors own 98.35% of the company’s stock.

Wall Street Analyst Weigh In ONTO has been the topic of several recent research reports. Evercore reiterated an “outperform” rating and issued a $315.00 price target on shares of Onto Innovation in a report on Friday, April 17th. Jefferies Financial Group restated a “buy” rating and set a $350.00 price objective on shares of Onto Innovation in a report on Wednesday, May 6th. Weiss Ratings raised Onto Innovation from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, April 27th. Cantor Fitzgerald increased their target price on Onto Innovation from $350.00 to $410.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Finally, Freedom Capital raised shares of Onto Innovation to a “strong-buy” rating in a research report on Wednesday, June 17th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $339.60.

Get Our Latest Stock Analysis on ONTO

Onto Innovation Stock Down 0.5% Shares of NYSE:ONTO opened at $278.45 on Tuesday. The business’s 50 day moving average is $295.27 and its 200 day moving average is $248.20. Onto Innovation Inc. has a 12-month low of $89.40 and a 12-month high of $386.46. The stock has a market cap of $13.85 billion, a price-to-earnings ratio of 130.12, a PEG ratio of 1.14 and a beta of 1.55.

Onto Innovation (NYSE:ONTO – Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The semiconductor company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.38 by $0.04. Onto Innovation had a net margin of 10.32% and a return on equity of 11.68%. The firm had revenue of $291.95 million for the quarter, compared to the consensus estimate of $292.00 million. During the same period in the previous year, the firm earned $1.51 EPS. The business’s revenue for the quarter was up 9.5% compared to the same quarter last year. As a group, equities research analysts expect that Onto Innovation Inc. will post 7.14 earnings per share for the current year.

Onto Innovation Company Profile (Free Report)

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.

See Also Five stocks we like better than Onto Innovation The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story

Receive News & Ratings for Onto Innovation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Onto Innovation and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEBank of New York Mellon Corp Acquires 349,255 Shares of Nu Holdings Ltd. $NU

NEXT HEADLINE »Conning Inc. Has $11.06 Million Position in Alphabet Inc. $GOOGL

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.