Onto Innovation orders top $1 billion as quarterly revenue rises 35.3% in August results
Key Facts
Onto Innovation announced on August 6, 2026, that its order backlog had exceeded $1 billion, while second-quarter revenue rose to $343.1 million. The company said in its earnings release that revenue grew 35.3% from the same period a year earlier. Revenue in the comparable period was $253.6 million, according to the release. The increase included its advanced nodes business, where revenue rose 50% from the previous quarter. The backlog and growth in this business were reported in results that coincided with the company's expansion of inspection capabilities for advanced packaging and AI memory applications.
Second-quarter revenue exceeded the upper end of the guidance the company issued when it reported first-quarter results. It had forecast second-quarter revenue of between $320 million and $330 million. Revenue also rose from the first quarter, when it reached $291.9 million, according to the company's release for that period. Previous guidance for second-quarter adjusted diluted earnings per share ranged from $1.65 to $1.73. In its August release, the company forecast third-quarter revenue of between $380 million and $400 million, a range above its reported second-quarter revenue.
On products, Onto Innovation said its Dragonfly G5 inspection platform can detect defects as small as 150 nanometers. In its platform launch announcement, it added that inspection throughput reaches 5 times that of the previous generation. Management estimated the serviceable market for the new inspection applications targeted by the platform's capabilities at more than $500 million. In its April release, the company announced the system's qualification for new and existing applications in two-and-a-half-dimensional advanced packaging. It said in that release that "initial shipments are expected to begin in June," setting a target at the time for the start of system deliveries for these applications.
In high-bandwidth memory manufacturing, the company links the need for early inspection to thinner memory dies and increasingly complex assembly. It said these factors increase the risks of hidden cracks and subsurface defects. It described the challenge as "increased risks of hidden cracks and subsurface defects" in a statement addressing its technologies for preventing defects in memory production. In this field, Onto Innovation received the Best Partner Award for Technical Achievement from SK hynix on September 28, 2026. The company's announcement of the award linked the technical achievement to preventing hidden defects during high-bandwidth memory production.
Onto Innovation had announced, as part of the previous year's results, a purchase agreement worth more than $240 million with a leading high-bandwidth memory manufacturer. The agreement includes Dragonfly equipment for two-dimensional inspection and three-dimensional bump metrology, according to the company's release. It said the purchased equipment supports the manufacturer's expansion plans through 2027. The agreement's scope combines component inspection and bump measurement as part of purchases aimed at expanding production of this type of memory. The agreement thus places the supply of inspection and metrology equipment within a customer expansion program extending through that year.
The company's announced commercial activities include advanced packaging applications, alongside high-bandwidth memory inspection and bump metrology. The new platform's capabilities target inspection applications whose serviceable market management estimated at more than $500 million at launch. The agreement with the memory manufacturer covers equipment supporting expansion through 2027, according to the previous year's earnings announcement. In its schedule of upcoming analyst meetings, the company announced that registration had opened for an event hosted by the New York Stock Exchange. Onto Innovation set the event for December 17, 2026, according to its announcement dedicated to the meeting.