Onto Innovation (NYSE:ONTO) Posts Earnings Results, Beats Expectations By $0.24 EPS

Posted by Geri Gentry on Aug 8th, 2026

Onto Innovation (NYSE:ONTO – Get Free Report) announced its quarterly earnings results on Thursday. The semiconductor company reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.24, FiscalAI reports. The business had revenue of $343.13 million for the quarter, compared to analysts’ expectations of $325.29 million. Onto Innovation had a return on equity of 13.19% and a net margin of 11.84%.The business’s quarterly revenue was up 35.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.25 EPS. 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 Performance

Shares of NYSE:ONTO traded up $39.08 on Friday, hitting $307.78. The company’s stock had a trading volume of 2,093,955 shares, compared to its average volume of 1,136,619. The company has a market capitalization of $15.31 billion, a price-to-earnings ratio of 115.71, a price-to-earnings-growth 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. The stock’s 50-day moving average is $297.04 and its two-hundred day moving average is $256.05.

Wall Street Analysts Forecast Growth

ONTO has been the subject of a number of recent research reports. Stifel Nicolaus set a $350.00 price objective on Onto Innovation and gave the stock a “buy” rating in a research note on Friday, April 17th. Oppenheimer raised their target price on Onto Innovation from $370.00 to $450.00 and gave the company an “outperform” rating in a research note on Monday, June 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Onto Innovation in a report on Friday, July 24th. B. Riley Financial restated a “buy” rating on shares of Onto Innovation in a research report on Friday. Finally, Zacks Research raised shares of Onto Innovation from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $378.11.

Get Our Latest Stock Report on Onto Innovation

Hedge Funds Weigh In On Onto Innovation

A number of institutional investors and hedge funds have recently bought and sold shares of ONTO. UMB Bank n.a. lifted its holdings in shares of Onto Innovation by 48.5% in the fourth quarter. UMB Bank n.a. now owns 713 shares of the semiconductor company’s stock valued at $113,000 after buying an additional 233 shares during the period. Smartleaf Asset Management LLC grew its holdings in Onto Innovation by 8.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,165 shares of the semiconductor company’s stock worth $186,000 after acquiring an additional 92 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in Onto Innovation by 1,446.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 773 shares of the semiconductor company’s stock worth $122,000 after acquiring an additional 723 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Onto Innovation in the third quarter worth about $80,000. Finally, iSAM Funds UK Ltd bought a new stake in Onto Innovation in the third quarter worth about $85,000. Institutional investors own 98.35% of the company’s stock.

Key Onto Innovation News

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

(Get 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.