Onto Innovation (NYSE:ONTO) Issues Earnings Results, Beats Estimates By $0.24 EPS

Onto Innovation (NYSE:ONTO) issued its quarterly earnings results on Thursday. The semiconductor company reported $1.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.24, FiscalAI reports. Onto Innovation had a net margin of 11.84% and a return on equity of 13.19%. The firm had revenue of $343.13 million for the quarter, compared to analyst estimates of $325.29 million. During the same period in the previous year, the business earned $1.25 EPS. The company’s revenue was up 35.3% compared to the same quarter last year. Onto Innovation updated its Q3 2026 guidance to 2.180-2.380 EPS.

Here are the key takeaways from Onto Innovation’s conference call:

• Record Q2 results exceeded the high end of guidance, with revenue of $343 million, up 18% sequentially and 35% year over year, while EPS reached $1.93.
• Strong AI-related demand drove advanced packaging and inspection growth, including a 30% sequential increase in Dragonfly revenue and more than $200 million of Dragonfly orders from one OSAT, primarily for delivery in 2027.
• The company raised its second-half revenue growth outlook to more than 25% over the first half, expects Q4 revenue to exceed Q3, and increased its full-year advanced packaging growth forecast to approximately 80%.
• Onto reported a record backlog exceeding $1.1 billion, with roughly 30%-40% tied to 2027, supporting management’s confidence in continued growth across advanced packaging, HBM, logic, and memory.
• Profitability improved substantially, with gross margin reaching 57% and operating margin 30% in Q2; management expects margins to rise further to approximately 32% in Q3 and at least 33% by year-end.

Onto Innovation Stock Up 14.5%

Shares of ONTO traded up $39.08 during trading hours on Friday, hitting $307.78. The company had a trading volume of 2,093,955 shares, compared to its average volume of 1,136,619. The business has a fifty day moving average of $297.04 and a 200-day moving average of $256.05. The firm has a market cap of $15.31 billion, a price-to-earnings ratio of 115.71, a PEG ratio of 1.26 and a beta of 1.59. Onto Innovation has a 12 month low of $93.50 and a 12 month high of $386.46.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. NewEdge Advisors LLC increased its stake in shares of Onto Innovation by 312.5% during the first quarter. NewEdge Advisors LLC now owns 4,121 shares of the semiconductor company’s stock worth $500,000 after purchasing an additional 3,122 shares during the period. Goldman Sachs Group Inc. increased its position in Onto Innovation by 76.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 482,256 shares of the semiconductor company’s stock worth $58,517,000 after buying an additional 208,907 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Onto Innovation by 8.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 163,259 shares of the semiconductor company’s stock worth $19,810,000 after buying an additional 13,175 shares in the last quarter. Cetera Investment Advisers boosted its position in shares of Onto Innovation by 6.3% in the second quarter. Cetera Investment Advisers now owns 4,017 shares of the semiconductor company’s stock valued at $405,000 after acquiring an additional 238 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in shares of Onto Innovation by 182.4% in the second quarter. Russell Investments Group Ltd. now owns 6,631 shares of the semiconductor company’s stock valued at $666,000 after acquiring an additional 4,283 shares in the last quarter. 98.35% of the stock is owned by institutional investors.

Analyst Ratings Changes

ONTO has been the topic of several analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Onto Innovation in a report on Friday, July 24th. Morgan Stanley reiterated an “overweight” rating and set a $383.00 price objective on shares of Onto Innovation in a research note on Friday. Cantor Fitzgerald increased their price objective on Onto Innovation from $350.00 to $410.00 and gave the company an “overweight” rating in a report on Monday, June 29th. Jefferies Financial Group boosted their target price on shares of Onto Innovation from $350.00 to $400.00 and gave the stock a “buy” rating in a report on Friday. Finally, Oppenheimer increased their price target on shares of Onto Innovation from $370.00 to $450.00 and gave the company an “outperform” rating in a research note on Monday, June 22nd. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $378.11.

Key Headlines Impacting Onto Innovation

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Q2 results beat expectations: Onto reported adjusted earnings of $1.93 per share versus the $1.69 consensus estimate, while revenue reached a record $343.1 million, up 35.3% year over year and above the $325.3 million expected. Profitability also improved, with gross profit up 50.1% and operating profit nearly doubling. Onto Innovation earnings report
• Positive Sentiment: Raised outlook significantly: Third-quarter EPS guidance of $2.18-$2.38 and revenue guidance of $380 million-$400 million are well above Wall Street estimates of $1.93 and $351.8 million, respectively. The stronger forecast supports expectations for accelerating near-term growth. Onto Innovation second-quarter results
• Positive Sentiment: AI and advanced packaging demand remain strong: Management said backlog exceeded $1.1 billion, with orders extending into 2027. Demand for advanced packaging equipment tied to AI chip production is strengthening the company’s visibility and second-half outlook. ONTO Q2 earnings call highlights
• Positive Sentiment: Analyst confidence increased: Needham raised its price target from $330 to $360 and maintained a Buy rating, reinforcing the positive reaction to the earnings and guidance. Analyst price target update
• Positive Sentiment: Industrywide catalyst: A proposed Tesla-SpaceX “Terafab” chip-manufacturing buildout could increase long-term demand for semiconductor inspection and metrology equipment from Onto and other suppliers. Tesla-SpaceX Terafab chip equipment outlook

Onto Innovation Company Profile

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.