Onto Innovation (NNM) Q2 2026 Earnings Report
DE:NNM Q2 2026 EPS Results
- Actual EPS
- EUR 1.73
- Consensus EPS
- EUR 1.52
- Beat/Miss
- Beat by +EUR 0.21
- One Year Ago EPS
- EUR 1.12
DE:NNM Q2 2026 Revenue Results
- Actual Revenue
- EUR 308.45M
- Expected Revenue
- EUR 292.41M
- Beat/Miss
- Beat by +EUR 16.04M
- YoY Revenue Growth
- +35.30%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 08/06/2026
- Time
- After Close
- Conference Call
- Thursday, August 6, 2026
Onto Innovation's next earnings date is estimated for November 9, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
The call was strongly positive, marked by record second-quarter financial results, substantial revenue and margin outperformance, a backlog exceeding $1.1 billion, raised second-half guidance, and strong demand across advanced packaging, HBM, AI-related applications, and advanced nodes. The company also reported robust liquidity, improving operating leverage, and additional growth opportunities in silicon photonics, panel-level packaging, and X-ray process control. The main challenges were material, fuel, and freight cost headwinds, sequential weakness in other packaging and specialty device revenue, ongoing supply-chain concerns, and qualification timelines that defer some product contributions to 2027.
Management raised its second half revenue growth outlook to 25% or more over the first half, with Q3 revenue expected in the range of $380 million-$400 million, an additional uptick in Q4, and Q4 revenue expected to be higher than Q3; CFO guidance calls for revenue to grow more than 25% in the second half of 2026, gross margin expansion of an incremental 50 basis points per quarter in Q3 and in Q4, operating margins of 32% in Q3 and 33% or higher exiting the year, and Q3 earnings per share of approximately $2.28, assuming a non-GAAP tax rate of 15% and slightly more than 50 million shares outstanding. The company expects advanced packaging growth of approximately 80%, or at least 80% this year, advanced nodes revenue to grow more than 35% in 2026, panel-level packaging revenue to more than double year-over-year with further growth in 2027, and silicon photonics served addressable market to grow to over $500 million by 2030.
- Record Second-Quarter ResultsRevenue, gross margin, operating margin, and earnings per share all exceeded the high end of guidance. Revenue was $343 million, up 18% sequentially and 35% year-over-year, while earnings were $1.93 per share, $0.20 above the high end of the previous guidance range.
- Raised Second-Half Revenue OutlookThe company raised its second-half revenue growth outlook to 25% or more over the first half, up from the previous expectation of 15%. Q3 revenue is expected to be $380 million-$400 million, with Q4 revenue expected to be higher than Q3.
- Record Backlog and Customer VisibilityRecord backlog surpassed $1.1 billion, reflecting customer confidence and longer-term commitments. Approximately 60%-70% of the backlog was tied to the current year and 30%-40% covered 2027, while discussions and planning cycles were described as constructive for 2027 growth.
- Advanced Nodes GrowthAdvanced nodes revenue increased 50% sequentially to approximately $120 million, surpassing the prior record set in 2022. The company expects advanced nodes revenue to grow more than 35% in 2026, continuing to outpace the latest WFE growth expectations.
- Broad-Based Memory and Logic PerformanceMemory, which comprised about 60% of advanced nodes revenue, grew approximately 60% sequentially, while logic grew more than 40% sequentially. Growth was reported across NAND, DRAM, and logic, with expanded adoption of Atlas G6.
- Atlas G6 Adoption at Sub-2-Nanometer NodesAtlas G6 is being used for transistor metrology at several nodes below 2 nm, where smaller spot sizes and increased precision are needed. The company expects to ship multiple systems to a major DRAM customer in the second half of the year for next-generation memory devices.
- Strong Dragonfly Inspection GrowthThe inspection business, dominated by Dragonfly systems, grew 30% quarter-over-quarter, driven by strong execution in 2.5D logic and HBM applications. Growth included increased OSAT volume, HBM inspection and 3D metrology, 3Di, and sub-surface inspection.
- Advanced Packaging Outlook Increased to Approximately 80%The company increased its full-year advanced packaging growth outlook to approximately 80%, up from the 50% growth projected in the prior quarter. Demand was strongest from HBM manufacturers and OSATs supporting heterogeneous packaging for AI applications.
- More Than $200 Million Dragonfly OrderOnto Innovation won orders totaling over $200 million for Dragonfly technology from a single OSAT partner. The majority of the orders are expected to be delivered in 2027, underscoring the stated magnitude of demand and customer confidence extending into the new year.
- Silicon Photonics OpportunityThe company received over $50 million in orders related to silicon photonics, with roughly two-thirds expected to be delivered in 2027. Onto estimates that its served addressable market in silicon photonics will grow to over $500 million by 2030, across light guides, light generation, and detection applications.
- Panel-Level Packaging GrowthThe company expects panel-level packaging revenue to more than double year-over-year, with further growth in 2027. JetStep lithography, Firefly process control, and Discover Software are being used to address large panels and CoWoS-related process-control applications.
- Record Revenue Expectations for Optical ProductsBoth the Iris films and integrated metrology product lines are on track to achieve record revenue levels in 2026. The company also cited new FAST applications intended to predict device performance earlier in fabrication.
- Improved Gross MarginSecond-quarter gross margin was 57%, up 250 basis points from Q4 2025 and 130 basis points from the first quarter. This surpassed the company's initial expectation for 200 basis points of gross-margin expansion in 2026.
- Operating Margin ExpansionSecond-quarter operating margin was 30%, an increase of nearly 500 basis points from the beginning of the year. The company expects operating margin to reach 32% in Q3 and exit 2026 at 33% or higher.
- Additional Second-Half Margin and EPS GuidanceThe company expects incremental gross-margin expansion of 50 basis points per quarter in Q3 and Q4. EPS at the midpoint of the Q3 revenue guide is expected to approximate $2.28, based on a non-GAAP tax rate of 15% and slightly more than 50 million shares outstanding.
- Strong Liquidity and Operating Cash FlowAs of June 30, Onto Innovation had nearly $1.9 billion of cash and short-term investments. The company generated $62 million of cash from operations in the second quarter, or slightly over 100% of second-quarter net income.
- Convertible Debt Offering and Share RepurchaseIn May, the company completed a $1.5 billion 0% interest convertible debt offering maturing in 2031, generating about $1.2 billion in net cash. Approximately $200 million of common stock was repurchased, and the capped call increased the strike price for dilution purposes to $509.06 per share.
- Extended Factory BenefitsThe successful ramp of extended factories in Asia is providing increased operational flexibility at a significantly reduced level of capital expenditure. Management also cited lower freight costs, lower labor costs, reduced cycle times, and the ability to add second and potentially third shifts.
- Capacity to Support GrowthManagement stated that the company is not capacity constrained. In-house factories previously supported capacity for $2 billion of revenue, and extended factories have since added essentially equal capability, with capacity described as higher than the U.S. factories.
- New and Expanding Market OpportunitiesThe company highlighted opportunities in surface charge metrology, silicon photonics, and X-ray solutions for 3D and exotic materials through its Rigaku partnership. The semiconductor X-ray market was estimated at approximately $1 billion today, with expected accelerated adoption as 3D transistor and packaging technology becomes more complex.
- Advanced Packaging Demand Expected to ContinueManagement expects advanced packaging to grow again in 2027 and stated that it is not seeing signs of overcapacity. Customers were described as facing constraints and pressure to ramp more capacity and release additional capacity.
DE:NNM Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 09, 2026 | 2026 (Q3) | 2.07- | 0.83 | ― | ― |
| Aug 06, 2026 | 2026 (Q2) | 1.521.73 | 1.12 | 54.40% (+0.61) | |
| May 05, 2026 | 2026 (Q1) | 1.271.28 | 1.36 | -5.96% (-0.08) | |
| Feb 19, 2026 | 2025 (Q4) | 1.151.13 | 1.36 | -16.56% (-0.22) | |
| Nov 06, 2025 | 2025 (Q3) | 0.780.83 | 1.2 | -31.34% (-0.38) | |
| Aug 07, 2025 | 2025 (Q2) | 1.151.12 | 1.19 | -5.30% (-0.06) | |
| May 08, 2025 | 2025 (Q1) | 1.321.36 | 1.06 | 27.97% (+0.30) | |
| Feb 06, 2025 | 2024 (Q4) | 1.261.36 | 0.95 | 42.45% (+0.40) | |
| Oct 31, 2024 | 2024 (Q3) | 1.191.20 | 0.86 | 39.58% (+0.34) | |
| Aug 08, 2024 | 2024 (Q2) | 1.081.19 | 0.71 | 67.09% (+0.48) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
