Onto Innovation Reports 2026 Second Quarter Results

Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced financial results for the second quarter of 2026.

Second Quarter Business and Financial Highlights:

• Record quarterly revenue of $343 million, up nearly 18% sequentially, with revenue, gross margin, operating margin and earnings per share all exceeding the high end of the previously announced non-GAAP guidance range.

• Advanced Nodes revenue grew 50% sequentially to a new quarterly record, driven by broad-based strengthening demand across logic and memory customers.

• Specialty Devices and Advanced Packaging revenue also reached an all-time high, supported by strong demand across advanced packaging, including 2.5D logic and high-bandwidth memory, as well as silicon photonics applications.

“Onto Innovation is positioned well across several key technology inflections driving next generation AI and high performance compute devices,” said Mike Plisinski, chief executive officer of Onto Innovation. “High end-market demand, supported by our team’s solid execution, resulted in record revenue in both advanced nodes and advanced packaging. Visibility continues to be strong with customers maintaining investments in their multi-year growth plans, resulting in a backlog exceeding $1 billion for the first time in company history. With this momentum, we expect a strong second half of 2026, reinforced by demand trends we believe will extend into 2027.”

Operating Results:

The results for the three and six months ended June 30, 2026, include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in the press release.

Three months ended June 30, 2026:

Revenue and Gross Margin:

• Revenue of $343.1 million, an increase of 35.3% year-over-year from $253.6 million in the second quarter of 2025.

• Gross margin of 53.4% as compared to gross margin of 48.2% in the second quarter of 2025. Non-GAAP gross margin of 57.0% as compared to 54.5% in the second quarter of 2025.

Operating Income:

• Operating income of $63.6 million, or 18.5% of revenue, as compared to operating income of $32.2 million, or 12.7% of revenue, in the second quarter of 2025.

• Non-GAAP operating income of $102.8 million, or 30.0% of revenue, as compared to non-GAAP operating income of $65.6 million, or 25.9% of revenue, in the second quarter of 2025.

Net Income and Earnings per Share:

• Net income of $60.1 million, or diluted earnings per share of $1.21, as compared to net income of $33.9 million, or diluted earnings per share of $0.69, in the second quarter of 2025.

• Non-GAAP net income of $96.0 million, or non-GAAP diluted earnings per share of $1.93, as compared to non-GAAP net income of $61.3 million, or non-GAAP diluted earnings per share of $1.25, in the second quarter of 2025.

Six months ended June 30, 2026:

Revenue and Gross Margin:

• Revenue of $635.1 million, an increase of 22.1% year-over-year from $520.2 million in the first six months of 2025.

• Gross margin of 51.9% as compared to gross margin of 51.0% in the first six months of 2025. Non-GAAP gross margin of 56.4% as compared to 54.8% in the first six months of 2025.

Operating Income:

• Operating income of $97.1 million, or 15.3% of revenue, as compared to operating income of $95.4 million, or 18.3% of revenue, in the first six months of 2025.

• Non-GAAP operating income of $180.7 million, or 28.5% of revenue, as compared to non-GAAP operating income of $142.1 million, or 27.3% of revenue, in the first six months of 2025.

Net Income and Earnings Per Share:

• Net income of $93.9 million, or diluted earnings per share of $1.88, as compared to net income of $98.0 million, or diluted earnings per share of $1.99, in the first six months of 2025.

• Non-GAAP net income of $166.8 million, or non-GAAP diluted earnings per share of $3.35, as compared to non-GAAP net income of $136.1 million, or non-GAAP diluted earnings per share of $2.77, in the first six months of 2025.

Cash and Investments:

The Company generated cash from operations of approximately $62 million for the second quarter of 2026. The Company ended the second quarter with $1.88 billion of cash and short-term investments on hand.

Financial Outlook:

For the third quarter ending September 30, 2026, the Company expects the following:

• Revenue of $380 million to $400 million

• Gross margin of 57.3% to 57.8%

• GAAP operating margin of 21.4% to 22.4%

• Non-GAAP operating margin of 31.5% to 32.5%

• GAAP diluted earnings per share of $1.54 to $1.70

• Non-GAAP diluted earnings per share of $2.18 to $2.38

Webcast & Conference Call Details

Onto Innovation will host a conference call at 4:30 p.m. Eastern Time today, August 6, 2026, to discuss its second quarter 2026 financial results and other matters in greater detail. To participate in the call, please dial 800-330-6710 or +1-646-769-9200 (international) and reference conference ID 1351162 at least five (5) minutes prior to the scheduled start time. A live webcast will also be available at www.ontoinnovation.com.

To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software. There will be a replay of the conference call available for one year on the Company’s website at www.ontoinnovation.com.

Discussion of Non-GAAP Financial Measures

In addition to information regarding the Company’s results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company has provided in this release non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin, which exclude amortization of intangibles, merger and acquisition-related expenses and benefits, litigation expenses and benefits and other restructuring costs. Non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin can also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability or otherwise are not representative of our ongoing operations, tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

We utilize several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operations of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. More specifically, management adjusts for the excluded items for the following reasons:

Amortization of intangibles: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to the purchased intangible assets and the term of amortization can vary significantly and are unique to each acquisition or purchase. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations and also facilitates comparisons to peer companies.

Merger or acquisition related expenses and benefits: we incur expenses or benefits with respect to certain items associated with our mergers and acquisitions, such as transaction and integration costs, change in control payments, adjustments to the fair value of assets, etc. We exclude such expenses or benefits as they are related to acquisitions and have no direct correlation to the operation of our ongoing business.

Restructuring and other: we incur restructuring and impairment charges on individual or groups of employed assets, such as inventory or plant, property & equipment, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financials, these transactions may limit the comparability of our ongoing operations with prior and future periods.

Litigation expenses and benefits: we may incur charges or benefits as well as legal costs in connection with litigation and other contingencies unrelated to our core operations. We exclude these charges or benefits, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of ongoing business and operating results.

Income tax expense: we estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pretax amount to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment.

From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) which include, but are not limited to, statements regarding Onto Innovation’s business momentum and future growth; technology development, product introduction and acceptance of Onto Innovation’s products and services; Onto Innovation’s manufacturing practices and ability to deliver both products and services consistent with its customers’ demands and expectations and strengthen its market position; Onto Innovation’s expectations regarding the semiconductor market outlook, including customers’ potential expansion plans; Onto Innovation’s future quarterly financial outlook; as well as other matters that are not purely historical data. Onto Innovation wishes to take advantage of the “safe harbor” provided for by the Act and cautions that actual results may differ materially from those projected as a result of various factors, including risks and uncertainties, many of which are beyond Onto Innovation’s control. Such factors include, but are not limited to, the Company’s ability to leverage its resources to improve its position in its core markets; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; fluctuations in customer capital spending; the Company’s ability to effectively manage its supply chain and adequately source components from suppliers to meet customer demand; the effects of political, economic, legal, and regulatory changes, including tariffs and trade disputes, or conflicts on the Company’s global operations; its ability to adequately protect its intellectual property rights and maintain data security; the effects of natural disasters or public health emergencies on the global economy and on the Company’s customers, suppliers, employees, and business; its ability to effectively maneuver global trade issues and changes in trade and export regulations, tariffs and license policies; the Company’s ability to maintain relationships with its customers and manage appropriate levels of inventory to meet customer demands; the Company’s ability to realize the anticipated benefits of the proposed investment in and strategic partnership with Rigaku Holdings Corporation (“Rigaku”); the Company’s ability to complete the proposed Rigaku transaction on the timing expected or at all; the ability to obtain required regulatory approvals for the proposed Rigaku transaction on the timing expected or at all; and the Company’s ability to successfully integrate acquired businesses and technologies including the Semilab business, and to realize the anticipated benefits of such acquisitions. Additional information and considerations regarding the risks faced by Onto Innovation are available in Onto Innovation’s Form 10-K report for the year ended January 3, 2026, and other filings with the Securities and Exchange Commission. As the forward-looking statements are based on Onto Innovation’s current expectations, the Company cannot guarantee any related future results, levels of activity, performance, or achievements. Onto Innovation does not assume any obligation to update the forward-looking information contained in this press release, except as required by law.

About Onto Innovation

Onto Innovation is a leader in process control, combining global scale with an expanded portfolio of leading-edge technologies that include: unpatterned wafer quality; 3D metrology spanning chip features from nanometer scale transistors to large die interconnects; macro defect inspection of wafers and packages; metal interconnect composition; factory analytics; and lithography for advanced semiconductor packaging. Our breadth of offerings across the entire semiconductor value chain combined with our connected thinking approach results in a unique perspective to help solve our customers’ most difficult yield, device performance, quality, and reliability issues. Onto Innovation strives to optimize customers’ critical path of progress by making them smarter, faster and more efficient. Headquartered in Wilmington, Massachusetts, Onto Innovation supports customers with a worldwide sales and service organization. Additional information can be found at www.ontoinnovation.com.

Source: Onto Innovation Inc.

ONTO-I

(Financial tables follow)

ONTO INNOVATION INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) – (Unaudited)
		June 30, 2026				January 3, 2026
ASSETS
Current assets
Cash, cash equivalents and marketable securities		$	1,882,150			$	639,622
Accounts receivable, net			337,384				268,932
Inventories			379,243				298,264
Prepaid expenses and other current assets			43,164				61,217
Total current assets			2,641,941				1,268,035
Net property, plant and equipment			123,717				127,184
Goodwill and intangibles, net			902,167				942,113
Other assets			31,217				30,409
Total assets		$	3,699,042			$	2,367,741
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities		$	194,716			$	156,229
Other current liabilities			76,929				62,717
Total current liabilities			271,645				218,946
2031 Notes, net			1,471,731			―
Other non-current liabilities			33,008				48,148
Total liabilities			1,776,384				267,094
Stockholders’ equity			1,922,658				2,100,647
Total liabilities and stockholders’ equity		$	3,699,042			$	2,367,741

ONTO INNOVATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts) – (Unaudited)
		Three Months Ended								Six Months Ended
		June 30, 2026				June 28, 2025				June 30, 2026				June 28, 2025
Revenue		$	343,129			$	253,597			$	635,078			$	520,204
Cost of revenue			159,875				131,475				305,435				254,849
Gross profit			183,254				122,122				329,643				265,355
Operating expenses:
Research and development			38,879				35,292				73,977				63,322
Sales and marketing			23,105				14,910				44,564				34,626
General and administrative			34,260				25,003				65,669				47,788
Amortization			19,699				8,446				39,399				16,891
Restructuring and other			3,761				6,224				8,970				7,347
Total operating expenses			119,704				89,875				232,579				169,974
Operating income			63,550				32,247				97,064				95,381
Interest income, net			5,245				8,631				10,347				17,897
Other expense, net			(299	)			(1,137	)			(863	)			(1,880	)
Income before provision for income taxes			68,496				39,741				106,548				111,398
Provision for income taxes			8,394				5,830				12,696				13,392
Net income		$	60,102			$	33,911			$	93,852			$	98,006
Earnings per share:
Basic		$	1.22			$	0.69			$	1.89			$	2.00
Diluted		$	1.21			$	0.69			$	1.88			$	1.99
Weighted average shares outstanding:
Basic			49,412				48,925				49,575				49,053
Diluted			49,682				49,016				49,841				49,213

ONTO INNOVATION INC.
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except percentages and per share data) – (Unaudited)
	Three Months Ended June 30, 2026
	Gross Profit				Gross Margin				Operating Income				Operating Margin				Net Income				Diluted EPS
Reported (GAAP)	$	183,254				53.4	%		$	63,550				18.5	%		$	60,102			$	1.21
Non-GAAP adjustments:
Merger and acquisition related expenses		751				0.2	%			4,303				1.3	%			8,728				0.17
Restructuring expenses and other		11,507				3.4	%			15,268				4.4	%			15,268				0.31
Amortization of intangibles		—				—	%			19,699				5.7	%			19,699				0.39
Net tax provision adjustments		—				—	%			—				—	%			(7,822	)			(0.15	)
Total adjustments		12,258				3.6	%			39,270				11.4	%			35,873				0.72
Adjusted (non-GAAP)	$	195,512				57.0	%		$	102,820				30.0	%		$	95,975			$	1.93
	Three Months Ended June 28, 2025
	Gross Profit				Gross Margin				Operating Income				Operating Margin				Net Income				Diluted EPS
Reported (GAAP)	$	122,122				48.2	%		$	32,247				12.7	%		$	33,911			$	0.69
Non-GAAP adjustments:
Merger and acquisition related expenses		—				—	%			2,507				1.0	%			2,507				0.05
Restructuring expenses and other		16,191				6.3	%			22,415				8.9	%			22,415				0.46
Amortization of intangibles		—				—	%			8,446				3.3	%			8,446				0.17
Net tax provision adjustments		—				—	%			—				—	%			(5,976	)			(0.12	)
Total adjustments		16,191				6.3	%			33,368				13.2	%			27,392				0.56
Adjusted (non-GAAP)	$	138,313				54.5	%		$	65,615				25.9	%		$	61,303			$	1.25

	Six Months Ended June 30, 2026
	Gross Profit				Gross Margin				Operating Income				Operating Margin				Net Income				Diluted EPS
Reported (GAAP)	$	329,643				51.9	%		$	97,064				15.3	%		$	93,852			$	1.88
Non-GAAP adjustments:
Merger and acquisition related expenses		6,899				1.1	%			13,566				2.1	%			17,991				0.36
Restructuring expenses and other		21,694				3.4	%			30,664				4.8	%			30,664				0.62
Amortization of intangibles		—				—	%			39,399				6.2	%			39,399				0.79
Net tax provision adjustments		—				—	%			—				—	%			(15,139	)			(0.30	)
Total adjustments		28,593				4.5	%			83,629				13.2	%			72,915				1.47
Adjusted (non-GAAP)	$	358,236				56.4	%		$	180,693				28.5	%		$	166,767			$	3.35
	Six Months Ended June 28, 2025
	Gross Profit				Gross Margin				Operating Income				Operating Margin				Net Income				Diluted EPS
Reported (GAAP)	$	265,355				51.0	%		$	95,381				18.3	%		$	98,006			$	1.99
Non-GAAP adjustments:
Merger and acquisition related expenses		—				—	%			2,665				0.5	%			2,665				0.05
Restructuring expenses and other		19,826				3.8	%			27,173				5.2	%			27,173				0.56
Amortization of intangibles		—				—	%			16,891				3.3	%			16,891				0.35
Net tax provision adjustments		—				—	%			—				—	%			(8,623	)			(0.18	)
Total adjustments		19,826				3.8	%			46,729				9.0	%			38,106				0.78
Adjusted (non-GAAP)	$	285,181				54.8	%		$	142,110				27.3	%		$	136,112			$	2.77

ONTO INNOVATION INC
SUPPLEMENTAL INFORMATION – RECONCILIATION OF THIRD QUARTER 2026
GAAP TO NON-GAAP FINANCIAL OUTLOOK
($ in millions, except percentages and per share data)
	Operating Income																Diluted EPS
	Low								High								Low				High
	Dollars				Margin				Dollars				Margin
Estimated GAAP	$	81.4				21.4	%		$	89.7				22.4	%		$	1.54			$	1.70
Estimated non-GAAP items:
Amortization of intangibles		19.7				5.2	%			19.7				4.9	%			0.40				0.40
Merger and acquisition related expenses		3.6				0.9	%			3.6				0.9	%			0.07				0.07
Restructuring expenses		15.0				3.9	%			17.0				4.3	%			0.30				0.34
Net tax provision adjustments		—				—	%			—				—	%			(0.13	)			(0.13	)
Estimated non-GAAP	$	119.7				31.5	%		$	130.0				32.5	%		$	2.18			$	2.38

 

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