Onto Innovation Q2 Earnings Call Highlights

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Onto Innovation (NYSE:ONTO) reported second-quarter 2026 results supra the precocious extremity of its guidance range, with revenue, margins and net supported by request for semiconductor process-control systems utilized successful precocious packaging and leading-edge spot manufacturing.

Chief Executive Officer Michael Plisinski said the institution acceptable quarterly gross records and entered the 2nd fractional with backlog exceeding $1.1 billion. He said expanding lawsuit visibility prompted Onto Innovation to rise its outlook for second-half gross maturation to astatine slightest 25% from the archetypal half, compared with a anterior anticipation for 15% growth.

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"We acceptable caller quarterly gross records with precocious nodes increasing 50% quarter-over-quarter, and our inspection business, dominated by Dragonfly systems, increasing by 30%," Plisinski said.

Second-Quarter Financial Results

Chief Financial Officer Brian Roberts said second-quarter gross totaled $343 million, up 18% sequentially and 35% from a twelvemonth earlier. The institution reported non-GAAP net per stock of $1.93, which Roberts said was $0.20 supra the precocious extremity of its anterior guidance range.

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Onto Innovation recorded a 57% gross margin, up 130 ground points from the archetypal 4th and 250 ground points from the 4th fourth of 2025. Operating borderline reached 30%, an summation of astir 500 ground points from the opening of the year, according to Roberts.

The institution generated $62 cardinal successful operating currency travel during the quarter, somewhat exceeding quarterly nett income. As of June 30, Onto Innovation held astir $1.9 cardinal successful currency and short-term investments.

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In May, the institution completed a $1.5 cardinal offering of 0% convertible indebtedness owed successful 2031, generating astir $1.2 cardinal successful nett cash. It utilized the remaining magnitude for astir $200 cardinal of common-stock repurchases, a capped-call transaction and nonrecreational fees, Roberts said.

Advanced Nodes and Packaging Demand

Revenue from advanced-node customers roseate astir 50% from the archetypal 4th to astir $120 million. Memory represented astir 60% of that concern and grew astir 60% sequentially, portion logic gross accrued much than 40%.

Plisinski said request broadened crossed memory, logic and NAND customers. He cited expanded adoption of the Atlas G6 level for transistor metrology astatine nodes beneath 2 nanometers, arsenic good arsenic expected second-half shipments to a large DRAM lawsuit for next-generation representation devices.