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Onto Innovation Inc.
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$10.9B
Market Cap
117.8
P/E
1.00
PEG
3.9%
ROCE
6.8%
ROE
0.77
D/E
20.1%
OPM
-41.4%
% from 52W High
84
α RS
🔍 ONTO is showing a multi-screen setup because it matches 4 of 39 tracked screener presets, Sector RRG has Technology in the Improving quadrant with the trail still strengthening, and RS Rating is 84. The main caution: the Margin Expansion preset's Backtest win rate is only 46.6%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG RS Rating Backtest
Sources
Conviction 4/39 · Technology in Improving quadrant · RS Rating 84 · Backtest win rate 46.6%
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that perform macro-defect inspection and metrology in the United States, Taiwan, South Korea, Japan, China, Southeast Asia, Asia, and Europe. The company offers lithography systems and process control analytical software; and automated and integrated metrology systems, silicon wafer all-surface inspection, macro defect inspection, automated defect classification and pattern analysis, yield analysis, opaque film metrology, 4D business, advanced packaging lithography, process control software, and yield management software products. It also provides process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements. In addition, the company offers process control software portfolio that includes solutions for standalone tools, groups of tools, and factory-wide suites. Further, it engages in systems and software, spare parts, and other services, as well as offers software licensing services; and provides advanced product lines, such as FAaST, CnCV, and MBIR. The company’s products are used in semiconductor and advanced packaging device manufacturers; silicon wafers; semiconductor integrated circuit fabricators; light emitting diodes; vertical-cavity surface-emitting lasers; micro-electromechanical systems; CMOS image sensors; silicon and compound semiconductor power devices; analog devices; RF filters; data storage; and various industrial and scientific applications. Onto Innovation Inc. was founded in 1940 and is headquartered in Wilmington, Massachusetts.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding ONTO
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.20M $246.8M 0.32% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED Onto Innovation Q1 2026 revenue $292M, expects >$1.3B FY2026 growth.
Revenue & Profitability
Q1 2026 revenue was $292M, up nearly 10% sequentially. GAAP gross margin 55.7% (non-GAAP), operating margin 26.7%, EPS $1.42. For Q2, revenue guided to $320M-$330M (midpoint $325M), gross margin 56%-56.5%, operating margin 28%-28.6%, EPS ~$1.69. Full-year 2026 revenue expected to exceed $1.3B, representing more than 30% growth.
Outlook
Management sees strong demand driven by AI compute, with insatiable end-market demand for high-performance computing and supporting technologies like silicon photonics. Capacity constraints in packaging are leading customers to consider panel-level packaging. The company expects revenue to accelerate in the second half of 2026 with at least 15% sequential growth, and momentum carrying into 2027 which looks even stronger.
Growth Drivers
Key growth levers include Dragonfly G5 (qualified at 2.5D logic customer, pipeline of over 15 applications across 10+ customers), Atlas G6 for next-gen logic and DRAM, 3Di technology for shrinking interconnects, and advanced packaging revenue expected to grow >50% in 2026. Silicon photonics and panel-level packaging are emerging opportunities. Advanced nodes business expected to grow ~25% in 2026.
Balance Sheet & CapEx
The company invested $710M in purchasing a 27% stake in Rigaku, expected to close in H2 2026, primarily funded with cash on hand. No specific CapEx guidance was provided, but management noted benefits from extended factories and supply chain pruning. The Rigaku investment is expected to generate license revenue, additional metrology tool sales, and annual dividends of ~$7M.
Margins
Gross margin improved 110bps sequentially to 55.7% in Q1, with Q2 guided to 56%-56.5%. Operating margin improved 150bps to 26.7% in Q1; Q2 guided to 28%-28.6%. The company expects at least 50bps gross margin improvement per quarter in Q3 and Q4, exiting Q4 with operating margin greater than 30%. Increasing headwinds from material costs (memory, fuel, shipping) are noted but managed.
Key Risks
Management flagged increasing headwinds from material input costs (memory, fuel, shipping) that pressure margins. Supply chain bottlenecks exist but are being managed without impacting commitments. The Rigaku stake is accounted for at fair value, introducing potential unrealized gains/losses from stock price movements. A risk discussed in Q&A: lead times extending slightly, but no major disruption.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Record Q2 results with revenue up 35% year-over-year and gross margin at 57%. Advanced packaging and nodes segments saw strong growth, with a record $1.1B backlog and raised outlook for H2 2026. Capacity expansion, new product wins, and robust demand in AI and HBM drive confidence into 2027.
Q1 2026 Q1 2026 2026-05-05
Q1 revenue and margins exceeded guidance, driven by AI and advanced packaging demand. 2026 revenue is projected to grow over 30%, with advanced packaging and nodes segments leading. Strategic Rigaku partnership and new product wins position the company to outpace WFE market growth.
Q4 2025 Q4 2025 2026-02-19
Record Q4 and annual revenue driven by strong advanced packaging and advanced nodes growth, with Q1 2026 revenue expected to rise further. Backlog and customer demand for AI-related solutions support a robust outlook, while supply chain and power semi headwinds remain.
Q3 2025 Q3 2025 2025-11-06
Q3 2025 results exceeded guidance with $218.2M revenue, 54% gross margin, and $0.92 EPS. Advanced packaging and node segments are driving growth, with strong AI and memory demand. Q4 revenue is guided up 15%-21%, and the Semilab acquisition is expected to close soon.
Q2 2025 Q2 2025 2025-08-07
Q2 revenue and margins exceeded guidance, driven by strong AI packaging and advanced node demand. The Semilab acquisition will expand the portfolio and be immediately accretive. Q3 is expected to be a low point, with a sharp Q4 rebound anticipated.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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