Onto Innovation (ONTO) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $343.1 million, up 35.3% year-over-year and nearly 18% sequentially, surpassing guidance for revenue, gross margin, operating margin, and EPS.

• Advanced nodes revenue grew 50% sequentially; advanced packaging and specialty devices reached all-time highs, driven by strong demand in logic, memory, and silicon photonics.

• Backlog exceeded $1.1 billion, with strong customer investment visibility and expectations for continued momentum into the second half of 2026 and into 2027.

• Net income for Q2 2026 was $60.1 million (GAAP EPS $1.21; non-GAAP EPS $1.93), nearly doubling year-over-year.

• Cash and short-term investments totaled $1.88 billion at June 30, 2026, up from $639.6 million at the start of the year.

Financial highlights

• Q2 2026 revenue: $343.1M (+35.3% YoY); gross margin: 53.4% (non-GAAP: 57.0%).

• Q2 2026 operating margin: 18.5% (non-GAAP: 30.0%), up from 12.7% (non-GAAP: 25.9%) YoY.

• Q2 2026 net income: $60.1M (EPS $1.21); non-GAAP net income: $96.0M (EPS $1.93).

• Cash from operations in Q2: $62M; cash and short-term investments at quarter end: $1.88B.

• Six months ended June 30, 2026: revenue $635.1M (+22.1% YoY), gross margin 51.9% (non-GAAP: 56.4%), net income $93.9M (EPS $1.88), non-GAAP net income $166.8M (EPS $3.35).

Outlook and guidance

• Q3 2026 revenue expected between $380M and $400M, with Q4 higher; gross margin guidance: 57.3% to 57.8%.

• Q3 2026 GAAP operating margin: 21.4% to 22.4%; non-GAAP: 31.5% to 32.5%.

• Q3 2026 GAAP EPS: $1.54 to $1.70; non-GAAP EPS: $2.18 to $2.38.

• Second half 2026 revenue expected to grow 25%+ over first half; advanced nodes revenue projected to grow 35%+ in 2026.

• Advanced packaging revenue expected to grow 80% for the year and again in 2027, with no signs of overcapacity.