Onto Innovation Revenue Surges 88% to Record $410 Million
Key Facts
Onto Innovation reported record revenue of $410 million in the third quarter of 2026, up 88% year over year and 19% from the second quarter, beating the high ends of its previous guidance ranges for revenue, operating margin and adjusted earnings per share. The company attributed strong demand to the increasing complexity of next-generation AI and high-performance computing device architectures, and the greater levels of process control they require. CEO Mike Plisinski said, "Demand remains strong as more complex device architectures for next-generation AI and high-performance computing drive greater process-control requirements." Results showed growth across more than one business line, with advanced nodes, advanced packaging and specialty devices each posting record quarterly revenue. In extended trading after the results and outlook were announced on November 9, the company's shares rose more than 9%, according to a Reuters report published by Investing.com.
Revenue was reported precisely at $409.7 million, compared with $218.2 million in the third quarter of 2025, equivalent to year-over-year growth of 87.8%. That comparison is consistent with the record $410 million the company announced after rounding, while 19% revenue growth quarter over quarter shows continued expansion from the prior quarter. Onto said revenue, operating margin and earnings per share all exceeded the high end of the non-GAAP guidance ranges it had set for the period. The available information did not include separate figures for achieved operating margin or earnings per share, but linked their outperformance against prior guidance to the quarter's strong results. The figures come amid rising demand for chip measurement and inspection equipment as manufacturing requirements intensify in AI and high-performance computing applications.
By product, advanced nodes posted record quarterly revenue, which the company said was driven by adoption of the Atlas G6 critical-dimension metrology system. Advanced packaging and specialty devices also achieved record revenue, driven mainly by Dragonfly G5 and Firefly inspection systems. The performance of these units indicates that quarterly growth was not limited to one category of the company's equipment, but extended to tools associated with process inspection, advanced nodes and packaging. Plisinski linked demand to the growing complexity of device designs targeting AI and high-performance computing applications, which require greater control over the production process. The company said this complexity supports the need for more precise measurement and inspection capabilities at different stages of manufacturing.
Onto's backlog rose to more than $1.3 billion during the quarter, the company said, as customers' investment plans remained visible for several years. The backlog indicates the volume of orders that have not yet converted into revenue, while management frames its outlook for coming periods in light of the level of investment it sees among customers. At the same time, the company generated about $79 million in cash from operations during the third quarter. It ended the period on September 30, 2026, with $1.25 billion in cash, cash equivalents and marketable securities. These figures provide financial context for the quarterly results and the company's outlook for continued growth, while realized revenue remains the headline figure in its announcement.
For the fourth quarter of 2026, Onto expects revenue of $430 million to $450 million, adjusted operating margin of 33.5% to 34.5%, and adjusted diluted earnings per share of $2.59 to $2.79. The outlook puts expected quarterly revenue above the third-quarter record if it comes in within management's announced range. For the full year, management said it expects revenue growth to exceed 45% compared with 2025. The company also described itself as well positioned for a strong 2027, with customer investment plans visible for several years and backlog above $1.3 billion. These remain management estimates for coming periods, while Onto shares closed at $194.04 on November 9, 2026, according to EL7 data.