Onto Innovation (NYSE:ONTO) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Onto Innovation (NYSE:ONTO) announced its quarterly earnings results on Monday. The semiconductor company reported $2.44 EPS for the quarter, topping the consensus estimate of $2.30 by $0.14, FiscalAI reports. The business had revenue of $409.75 million for the quarter, compared to analyst estimates of $392.08 million. Onto Innovation had a return on equity of 17.03% and a net margin of 11.53%. The company’s quarterly revenue was up 87.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.92 EPS.

Here are the key takeaways from Onto Innovation’s conference call:

• Onto reported Q3 revenue of $410 million, up 19% sequentially and nearly 90% year over year, with EPS of $2.44. Gross margin reached a record 57.6% and operating margin was 32.6%, both above the company’s guidance.
• The company raised Q4 revenue guidance to $430 million–$450 million and expects more than 45% full-year growth. Record backlog of over $1.3 billion supports management’s outlook for sequential revenue growth through at least the first half of 2027.
• Advanced packaging revenue is expected to grow more than 80% in 2026, with momentum across 2.5D and HBM. Dragonfly G5 has reached more than 10 customers, and 2027 orders already represent twice its expected 2026 revenue.
• Advanced-node revenue is on pace to grow over 35% in 2026, with management expecting faster growth in 2027, particularly in logic and DRAM. The company cited rapid Atlas G6 adoption and rising demand for in-die metrology as drivers.
• Management said component and supply-chain cost pressures, including memory pricing, are weighing on margins, though operational efficiencies are helping offset them. Onto also recorded an approximately $40 million unrealized loss on its Rigaku investment in Q3, which affects GAAP results but is excluded from non-GAAP results.

Onto Innovation Price Performance

ONTO stock traded up $23.46 on Wednesday, reaching $220.97. The company had a trading volume of 662,633 shares, compared to its average volume of 1,063,033. The company’s fifty day moving average is $250.73 and its 200 day moving average is $259.12. The company has a market cap of $10.84 billion, a P/E ratio of 72.50, a PEG ratio of 0.63 and a beta of 1.66. The company has a debt-to-equity ratio of 0.77, a quick ratio of 8.33 and a current ratio of 9.73. Onto Innovation has a 1 year low of $121.57 and a 1 year high of $386.46.

Insiders Place Their Bets

In related news, Director Susan D. Lynch sold 1,000 shares of Onto Innovation stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $302.30, for a total transaction of $302,300.00. Following the completion of the sale, the director owned 2,684 shares in the company, valued at approximately $811,373.20. This trade represents a 27.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David Miller sold 2,000 shares of the business’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $300.00, for a total transaction of $600,000.00. Following the completion of the transaction, the director directly owned 10,692 shares of the company’s stock, valued at $3,207,600. The trade was a 15.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.51% of the company’s stock.

Key Stories Impacting Onto Innovation

These are some of the ONTO stories that stood out recently:

• Positive Sentiment: Onto reported record third-quarter revenue of about $410 million, up 88% year over year, and adjusted EPS of $2.44—both above analyst expectations. The company also forecast fourth-quarter revenue of $430 million–$450 million and EPS of $2.59–$2.79, ahead of consensus estimates. Management cited a backlog exceeding $1.3 billion, with AI-related demand supporting the outlook. Onto Innovation Reports 2026 Third Quarter Results
• Positive Sentiment: Evercore initiated coverage with a “strong-buy” rating, adding a bullish analyst view. Evercore analyst ratings
• Negative Sentiment: Recent coverage also flags valuation and execution risks, which could limit gains if Onto does not convert strong demand and its large backlog into sustained results. Zacks analysis of Onto Innovation

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Onto Innovation in a report on Tuesday, October 20th. Stifel Nicolaus lowered their target price on Onto Innovation from $350.00 to $305.00 and set a “buy” rating on the stock in a report on Tuesday. Jefferies Financial Group cut their price target on Onto Innovation from $400.00 to $350.00 and set a “buy” rating for the company in a research note on Tuesday. Morgan Stanley cut their price target on Onto Innovation from $360.00 to $325.00 and set an “overweight” rating for the company in a research note on Tuesday. Finally, Wall Street Zen upgraded shares of Onto Innovation from a “hold” rating to a “buy” rating in a research report on Sunday, August 9th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $354.55.

Onto Innovation Company Profile

Onto Innovation develops process-control and inspection solutions used in semiconductor manufacturing. Its products include metrology and inspection systems, lithography equipment, and software that help manufacturers monitor production processes and identify defects. The company serves producers of semiconductor devices, advanced packaging, and specialty components. Its technologies support applications ranging from traditional wafer fabrication to newer packaging methods used in complex chips.