ONTO INNOVATION INC. (ONTO): Results of Operations and Financial Condition
ONTO INNOVATION INC. (ONTO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Onto Innovation Reports 2026 Second Quarter Results Wilmington, Mass ., August 6, 2026 – 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 Highlig
How this was made
The 30-second read
Why it matters
The filing provides fresh, decision-relevant numbers: Q2 revenue, gross margin, operating income, EPS, cash balance, and explicit Q3 revenue, margin, and EPS ranges, plus a new $1B+ backlog milestone.
Market read
Record Q2 performance and raised Q3 guidance, supported by a first-time $1B+ backlog, create a near-term catalyst for earnings estimates and sentiment.
What to watch
The release emphasizes non-GAAP metrics; traders may discount the durability of GAAP operating margin and watch for any reconciliation items or working-capital swings not detailed in the excerpt.
Onto Innovation reported record quarterly revenue of $343.1 million, with revenue, gross margin, operating margin and earnings per share exceeding the high end of previously announced non-GAAP guidance.
Second-quarter revenue grew 35.3% year-over-year, GAAP and non-GAAP gross margins expanded, operating income and earnings per share increased, and third-quarter guidance calls for $380 million to $400 million of revenue.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30, 2026GAAP | $343.1 million | up nearly 18% sequentially | 35.3% |
| Gross margin, three months ended June 30, 2026GAAP | 53.4% | – | – |
| Gross margin, three months ended June 30, 2026non-GAAP | 57.0% | – | – |
| Operating income, three months ended June 30, 2026GAAP | $63.6 million | – | – |
| Operating margin, three months ended June 30, 2026GAAP | 18.5% of revenue | – | – |
| Operating income, three months ended June 30, 2026non-GAAP | $102.8 million | – | – |
| Operating margin, three months ended June 30, 2026non-GAAP | 30.0% of revenue | – | – |
| Net income, three months ended June 30, 2026GAAP | $60.1 million | – | – |
| Diluted earnings per share, three months ended June 30, 2026GAAP | $1.21 | – | – |
| Net income, three months ended June 30, 2026non-GAAP | $96.0 million | – | – |
| Diluted earnings per share, three months ended June 30, 2026non-GAAP | $1.93 | – | – |
| Revenue, six months ended June 30, 2026GAAP | $635.1 million | – | 22.1% |
| Gross margin, six months ended June 30, 2026GAAP | 51.9% | – | – |
| Gross margin, six months ended June 30, 2026non-GAAP | 56.4% | – | – |
| Operating income, six months ended June 30, 2026GAAP | $97.1 million | – | – |
| Operating margin, six months ended June 30, 2026GAAP | 15.3% of revenue | – | – |
| Operating income, six months ended June 30, 2026non-GAAP | $180.7 million | – | – |
| Operating margin, six months ended June 30, 2026non-GAAP | 28.5% of revenue | – | – |
| Net income, six months ended June 30, 2026GAAP | $93.9 million | – | – |
| Diluted earnings per share, six months ended June 30, 2026GAAP | $1.88 | – | – |
| Net income, six months ended June 30, 2026non-GAAP | $166.8 million | – | – |
| Diluted earnings per share, six months ended June 30, 2026non-GAAP | $3.35 | – | – |
| Cash from operations, second quarter of 2026other | approximately $62 million | – | – |
| Cash and short-term investments, end of second quarter of 2026other | $1.88 billion | – | – |
third quarter ending September 30, 2026 outlook
- Revenue$380 million to $400 million
- Gross margin57.3% to 57.8%
- NoteGAAP operating margin of 21.4% to 22.4%
- NoteNon-GAAP operating margin of 31.5% to 32.5%
- NoteGAAP diluted earnings per share of $1.54 to $1.70
- NoteNon-GAAP diluted earnings per share of $2.18 to $2.38
What drove it
- 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 reached an all-time high, supported by demand across advanced packaging, including 2.5D logic and high-bandwidth memory, as well as silicon photonics applications.
- Management cited high end-market demand, solid execution, and customers maintaining investments in multi-year growth plans.
Concerns
- GAAP operating margin for the six months ended June 30, 2026 was 15.3% of revenue, compared with 18.3% of revenue in the first six months of 2025.
- GAAP net income for the six months ended June 30, 2026 was $93.9 million, compared with $98.0 million in the first six months of 2025.
- The filing did not disclose quarterly revenue amounts for Advanced Nodes, Specialty Devices, or Advanced Packaging.
What to watch
- Third-quarter revenue guidance of $380 million to $400 million.
- Third-quarter GAAP operating margin guidance of 21.4% to 22.4% and non-GAAP operating margin guidance of 31.5% to 32.5%.
- Demand trends across logic, memory, 2.5D logic, high-bandwidth memory, and silicon photonics.
- Customer investment levels in multi-year growth plans and backlog development beyond the first reported backlog exceeding $1 billion.
Balance sheet and cash flow
- 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.
- Backlog exceeded $1 billion for the first time in company history.
Analysis
Onto Innovation delivered record quarterly revenue of $343.1 million in the second quarter of 2026, up 35.3% year-over-year from $253.6 million and up nearly 18% sequentially. The company stated that revenue, gross margin, operating margin and earnings per share all exceeded the high end of its previously announced non-GAAP guidance range. Demand strength was broad-based across advanced nodes, advanced packaging, logic, memory, high-bandwidth memory and silicon photonics applications.
Profitability improved materially in the quarter. GAAP gross margin increased to 53.4% from 48.2%, while non-GAAP gross margin rose to 57.0% from 54.5%. GAAP operating income was $63.6 million, or 18.5% of revenue, versus $32.2 million, or 12.7% of revenue. Non-GAAP operating income reached $102.8 million, or 30.0% of revenue, compared with $65.6 million, or 25.9% of revenue.
Second-quarter earnings also advanced sharply from the prior-year period. GAAP net income was $60.1 million and GAAP diluted earnings per share was $1.21, compared with $33.9 million and $0.69. Non-GAAP net income was $96.0 million and non-GAAP diluted earnings per share was $1.93, compared with $61.3 million and $1.25. For the first six months, revenue grew 22.1% to $635.1 million, although GAAP operating margin was 15.3% of revenue versus 18.3% of revenue and GAAP net income was $93.9 million versus $98.0 million.
Cash generation and liquidity were substantial, with approximately $62 million of cash from operations during the second quarter and $1.88 billion of cash and short-term investments at quarter end. The company also reported backlog exceeding $1 billion for the first time in its history. No share repurchases, dividends, debt balances, or free cash flow were disclosed in the provided filing text.
The third-quarter outlook calls for $380 million to $400 million of revenue, gross margin of 57.3% to 57.8%, GAAP operating margin of 21.4% to 22.4%, and non-GAAP operating margin of 31.5% to 32.5%. Guidance also calls for GAAP diluted earnings per share of $1.54 to $1.70 and non-GAAP diluted earnings per share of $2.18 to $2.38. Management linked the outlook to continued customer investment in multi-year growth plans and demand trends it believes will extend into 2027.
Management, verbatim
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.
Mike Plisinski, chief executive officer of Onto Innovation
Not in the filing
stated, not guessed- Previous-quarter revenue, gross margin, operating income, operating margin, net income, and earnings per share amounts for comparison.
- Quarterly revenue amounts and year-over-year comparisons for Advanced Nodes, Specialty Devices, Advanced Packaging, logic, memory, high-bandwidth memory, and silicon photonics.
- GAAP and non-GAAP operating expenses.
- Gross profit.
- Free cash flow.
- Debt balance.
- Share repurchases, dividends, and other capital-return activity.
- Cash and short-term-investment prior-period balances.
- Third-quarter operating-expense guidance.
- Third-quarter tax-rate guidance.
- Prior outlook for comparison with reported second-quarter results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) reporting Onto Innovation’s Q2 2026 financial results and providing Q3 2026 guidance.
Ticker impact
Onto Innovation reported Q2 2026 results with record $343.1M revenue, margin expansion, and raised Q3 guidance to $380M-$400M revenue.
Bullish bias for the next earnings window, with sensitivity to whether backlog and demand commentary translate into sustained bookings.
The filing discloses multiple concrete datapoints: record revenue and margins, EPS improvement, and explicit Q3 revenue and EPS ranges, all tied to demand/visibility and a $1B+ backlog.
Market effects
Strength in advanced nodes and advanced packaging demand signals continued capex support for semiconductor equipment and process control spend tied to AI and high-performance compute.
Limited direct regional read-through; primarily a US-listed semiconductor equipment name with global customer exposure.
Supports the broader AI compute supply-chain narrative via demand commentary for logic, memory, 2.5D, and silicon photonics applications.
Counterpoint
Margin and EPS strength could be partially mix-driven; if customer investment timing slips, the strong backlog narrative may not fully protect forward revenue.
Key entities
- public_companyOnto Innovation Inc.
NYSE-listed semiconductor equipment company reporting Q2 2026 results and Q3 2026 guidance.
- executiveMike Plisinski
CEO quoted on demand visibility, backlog, and expectations for strong 2H 2026.
