Onto Innovation (ONTO) Guided Q3 Higher, Will Its $1 Billion Backlog Deliver?

Onto Innovation (ON) stock rose 5.6% to $332.47 after RBC initiated coverage with an Outperform rating and $400 target, citing growth in chipmaking segments and the Dragonfly G5 platform. The company reported Q2 2026 revenue of $343M, up 35% YoY, and a backlog exceeding $1B. The surge also followed a positive U.S. equities session and weaker jobs data, reducing Fed rate hike expectations.

Onto Innovation (NYSE:ONTO) shares rose 5.4% after RBC Capital initiated coverage with an Outperform rating and $400 price target. The firm cited the company's exposure to advanced packaging technologies and strong long-term capital equipment positioning. RBC expects Onto to outpace broader wafer fabrication equipment spending due to increased investments in 2.5D and 3D chip architectures.

Onto Innovation (ONTO) acquired a 27% stake in Rigaku Holdings for $720M, expanding its X-ray chip tech collaboration. Q2 2026 revenue rose 35.3% YoY to $343.1M, beating guidance. Backlog exceeded $1B. Q3 guidance: $380M-$400M revenue, EPS $2.18-$2.38. H1 2026 net income fell to $93.9M from $98M YoY, with margins declining.

Midday movers included Intuitive Machines, up about 9% after saying it received an authorization to proceed for a $600 million multisatellite communications program. EyePoint Pharmaceuticals fell about 70% after its Phase 3 wet AMD treatment failed its primary goal. JetBlue dropped 6% after a Seaport Research downgrade. Onto Innovation rose on Goldman coverage. Workday fell after a Deutsche Bank downgrade. Memory chip stocks rose after comments on Apple buying Chinese chips.

ONTO INNOVATION INC. (ONTO) filed an SEC Form 8-K — Completion of Acquisition or Disposition of Assets. Exhibit 99.1 Onto Innovation Completes Strategic Investment in Rigaku Holdings Corporation Investment deepens strategic collaboration to advance next-generation X-ray-based process control solutions for semiconductor manufacturing Wilmington, Mass ., August 10, 2026 – Onto Innova

Onto Innovation (NYSE:ONTO) reported Q2 operating cash flow of $62 million and cash and short-term investments of about $1.9 billion as of June 30. In May it completed a $1.5 billion 0% convertible debt offering due 2031, netting about $1.2 billion, and used part for repurchases. Q3 revenue guidance is $380-$400 million; non-GAAP EPS about $2.28 at midpoint. Advanced-node revenue expected to grow over 35% in 2026; advanced-packaging growth outlook raised to about 80% for 2026.