Onto Innovation Inc.

Q2 FY26Semiconductors and Semiconductor Equipment

Onto Innovation Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹259

Market cap₹12.9K Cr

P/E128.1

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

4 of 4 strong

RevenueRank 2

MarginRank 2

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Advanced packaging revenue expected to grow more than 50% in 2026, driven by Dragonfly G5 and panel-level packaging. - Q2 2026 earnings per share (EPS) expected at approximately $1.69, representing strong growth.

From Onto Innovation Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 2

Advanced packaging revenue expected to grow more than 50% in 2026, driven by Dragonfly G5 and panel-level packaging.
Dragonfly G5 shipments increasing steadily through 2026 quarters; strong pipeline with over 10 customers and 15 applications.
Advanced nodes business projected to grow about 25% in 2026, outpacing average WFE growth.
Silicon photonics seen as a high-growth area from a low base, with volume ramp-ups starting.
Panel-level packaging currently around $200 million revenue, with potential to increase as industry adoption grows.
Rigaku collaboration expected to generate licensing revenue and hybrid metrology sales, with software revenue growing in 2026 and 2027.
Overall, 2026 revenue forecast over $1.3 billion; visibility and backlog strong.
Gross and operating margins expected to expand through 2026, with continued margin improvement into 2027.
Company expects to outgrow WFE (Worldwide Semiconductor Equipment) spending in 2027.

Profitability & Margins

Q2 2026 earnings per share (EPS) expected at approximately $1.69, representing strong growth.
Full-year 2026 revenue projected to exceed $1.3 billion, with more than 30% revenue growth.
Gross margin expected to expand sequentially, targeting 56% to 56.5% in Q2 and improving 50 basis points per quarter thereafter.
Operating margin anticipated to increase, with Q2 guidance of 28% to 28.6% and a target exceeding 30% by Q4 2026.
Margin improvements supported by product ramps (e.g., Dragonfly G5), operational efficiencies, and managing supply chain.
EPS rose 13% sequentially in Q1 2026, indicating strong profitability trend.
Expectation to outgrow the wider wafer fab equipment (WFE) industry growth rates in 2027.
Rigaku partnership anticipated to add nearly 100% margin licensing revenue, dividend income, and incremental sales enhancing future profitability.

See what Onto Innovation Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Onto Innovation announced a strategic investment by purchasing a 27% stake in Rigaku for approximately $710 million, expected to close in H2 2026, primarily funded with cash on hand.
This investment strengthens long-term alignment, provides insight into X-ray technology roadmaps, and supports joint development of next-generation hybrid metrology solutions combining optical and X-ray technologies.
There is active ongoing R&D collaboration with Rigaku targeting hybrid metrology solutions for future advanced semiconductor processes, aiming for high-volume manufacturing readiness a few generations out.
The company is managing supply chain adjustments and factory expansions (extended factories) to support growth and meet customer demands, including pruning suppliers to improve scalability.
Capex likely focused on ramping new platforms like Dragonfly G5 and Atlas G6 for advanced packaging and nodes, though specific capex amounts are not detailed in the provided text.

Fundraising & Capital Structure

No mention of any new fundraising through debt or equity in the provided transcript.
The company completed a major investment by purchasing a 27% stake in Rigaku for approximately $710 million, primarily funded with cash on hand.
No indications of planned equity or debt offerings to raise additional capital were discussed during the call.
Focus is on operational execution, product ramp, margin improvement, and strategic partnerships rather than raising new external funding.
They expect income streams from Rigaku dividends, licensing, and profits to offset any foregone interest from the cash used in the Rigaku deal, implying no immediate need for further fundraising.

See what Onto Innovation Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Onto Innovation reported a record backlog, indicating strong orderbook visibility.
There is a healthy pipeline of application studies for Dragonfly G5, implying significant order expansion in 2027.
The partnership with Rigaku also contributes to software attach rates depending on Rigaku’s CD X-ray tool pipeline, which is described as quite healthy.
Shipments of Dragonfly G5 have been accelerating, with requests to pull in shipments and steady growth expected through all four quarters of 2026.
Orders from 10+ customers and over 15 applications for Dragonfly G5 are actively engaged and growing.
Over 10 new orders were received in the quarter for 3DI technology from OSAT customers.
JetStep has been qualified at two packaging suppliers with ramp-up expected in 2027.
Overall, strong demand and record backlog support a revenue outlook greater than $1.3 billion in 2026.

Others in Semiconductors and Semiconductor Equipment this season

FormFactor, Inc. (Q2 FY26)
FormFactor, Inc. Q2 FY26 quarterly results analysis. FormFactor expects continued strong revenue growth, with Q2 2026 guidance at $240 million ± $5 million, up
Skyworks Solutions, Inc. (Q2 FY26)
Skyworks Solutions, Inc. Q2 FY26 quarterly results analysis. Revenue opportunity expected to rise year-over-year, acting as a growth tailwind through 2030 (Page
Nova Ltd. (Q2 FY26)
Nova Ltd. Q2 FY26 quarterly results analysis. Nova expects robust growth driven by advanced DRAM, Logic (including gate-all-around), and advanced packaging mark
Rambus Inc. (Q2 FY26)
Rambus Inc. Q2 FY26 quarterly results analysis. Rambus expects strong growth in 2026 driven by sustained technology leadership and execution. Market Cap $16,006

Compare:vs NVIDIA Corporation vs Taiwan Semiconductor Manufacturing Company Limited vs Broadcom Inc.

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Frequently Asked Questions

What were Onto Innovation Inc. Q2 FY26 results?

What is Onto Innovation Inc. share price analysis?

Onto Innovation Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 128.1 with a market cap of $12,874. Investors should review the full earnings analysis for detailed insights.

Is Onto Innovation Inc. planning capital expenditure?

- Onto Innovation announced a strategic investment by purchasing a 27% stake in Rigaku for approximately $710 million, expected to close in H2 2026, primarily funded with cash on hand.

Keep Onto Innovation Inc. on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.