Onto Innovation Sets Third-Quarter Revenue at $380 Million to $400 Million
Key Facts
Onto Innovation set third-quarter 2026 revenue at $380 million to $400 million, according to guidance issued on August 6 with its second-quarter results. The $400 million figure is the top end of the range announced by the company, not a standalone target issued on October 28. The guidance covers the quarter ended September 30, while management said order momentum supports its expectations for the second half of the year. The company said demand for advanced nodes and advanced packaging was strong in the second quarter. The guidance came as backlog topped $1 billion for the first time in the company's history.
The company's revenue was $343.1 million in the second quarter, up 35.3% from $253.6 million in the same period of 2025. Advanced-node revenue rose 50% sequentially to a new record. The company attributed the growth to broad-based demand improvement among logic and memory customers. Revenue from specialty devices and advanced packaging also reached a record. The company said demand included 2.5D packaging, logic, high-bandwidth memory and silicon photonics applications.
Chief Executive Mike Plisinski linked the results to strong end demand and execution quality, and said the company continued to have strong visibility as customers invested in multi-year growth plans. He added that these factors helped backlog top $1 billion for the first time in the company's history. GAAP gross margin was 53.4% in the second quarter, compared with 48.2% a year earlier. Non-GAAP gross margin rose to 57.0% from 54.5%. Plisinski said the momentum supports his expectations for a strong second half of 2026, and that demand trends the company is monitoring could extend into 2027.
Net income was $60.1 million in the second quarter, compared with $33.9 million in the same period of 2025. Diluted earnings per share were $1.21, compared with $0.69 a year earlier. For the first half, revenue reached $635.1 million, up 22.1% from $520.2 million in the first half of 2025. The company generated about $62 million in cash from operations during the quarter. It ended the second quarter, on June 30, with about $1.88 billion in cash and short-term investments.
Alongside its revenue range, the company forecast gross margin of 57.3% to 57.8% in the third quarter. It set non-GAAP operating margin at 31.5% to 32.5%. It also forecast non-GAAP diluted earnings per share of $2.18 to $2.38. These metrics provide a framework for comparing actual results with the guidance management announced in August. The company is scheduled to report third-quarter results after the market close on November 9, 2026, and hold its earnings call at 4:30 p.m. Eastern time.
In trading on October 27, the company's shares, under the ticker ONTO, closed at $214.17, after closing at $203.53 in the previous session. This comes ahead of the results due on November 9, which will allow a comparison of actual revenue and margins with the guidance ranges. The company had linked its outlook to strong demand for advanced nodes and advanced packaging and to customers' continued multi-year plans. It also said backlog had topped $1 billion for the first time. The guidance does not include a price target for the stock.