ONTO · Onto Innovation Inc.

Onto Innovation delivered record Q1 2026 revenue of $291.9 million, reflecting 9.5% year-over-year growth and nearly 10% sequential increase from Q4 2025, driven by strong demand for advanced systems like the Dragonfly G5 inspection platform qualified at a leading 2.5D logic and high-bandwidth memory customer, and the Atlas G6 metrology system adopted by a second logic customer for gate-all-around applications. This contributed to 13% quarterly growth in advanced nodes, with management positioning the segment for about 25% full-year expansion. GAAP gross margin dipped to 50.1% from 53.7% YoY due to mix or cost pressures, but non-GAAP gross margin improved slightly to 55.7%. Non-GAAP operating income rose modestly to $77.9 million (26.7% of revenue), supported by operational leverage despite higher expenses. CEO Mike Plisinski highlighted positive customer responses to new systems, Asia factory ramps, and portfolio expansions via the Semilab acquisition and a major strategic move: a $710 million investment for 27% ownership in Rigaku, adding advanced X-ray technologies, with closing expected in H2 2026 and board nomination rights. Balance sheet remains solid with $654 million in cash and short-term investments after $26 million operating cash flow. Q2 guidance signals continued momentum with revenue growth to $320-330 million, gross margins at 56-56.5%, and non-GAAP EPS of $1.65-$1.73, underscoring confidence in customer ramps and process control leadership amid semiconductor advanced packaging trends.