Onto Innovation (NYSE:ONTO) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Onto Innovation (NYSE:ONTO) issued its quarterly earnings results on Thursday. The semiconductor company reported $1.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.02), FiscalAI reports. Onto Innovation had a return on equity of 12.41% and a net margin of 13.60%.The business had revenue of $266.87 million for the quarter, compared to analysts’ expectations of $265.78 million. During the same quarter last year, the company earned $1.51 earnings per share. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. Onto Innovation updated its Q1 2026 guidance to 1.260-1.360 EPS.

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

• Record results: Q4 revenue of $267M and FY revenue of $1,005M with sequential gross and operating margin improvement and a record $95M cash generation, highlighting strong execution and cash flow.
• Large customer VPA and packaging strength: Executed a >$240M volume purchase agreement for HBM Dragonfly 2D/3D metrology through 2027 (including >$60M of 3D systems) and expects advanced packaging revenue to grow >30% in 2026, supported by JetStep and Firefly orders for panel-level packaging.
• Advanced nodes momentum: 2025 revenue from advanced nodes more than doubled to $308M driven by OCD leadership and Atlas G6 adoption, with record films/integrated metrology and expectations for continued mid‑teens growth in 2026.
• Backlog and guidance: Backlog nearly doubled to roughly two quarters; Q1 revenue guide is $275M–$285M and management expects Q2 revenue to exceed $300M with ongoing margin expansion, improving visibility but still dependent on conversion and timing.
• Acquisition and market headwinds: Closed Semilab for $445M (cash + shares), which added ~$9M in Q4 but faces a projected ~10% decline in power semiconductor revenue for 2026 and will raise near‑term operating expenses as integration and a full quarter of Semilab results impact the P&L.

Onto Innovation Stock Performance

Shares of Onto Innovation stock opened at $215.44 on Friday. The firm has a fifty day moving average of $192.29 and a two-hundred day moving average of $149.46. The stock has a market capitalization of $10.56 billion, a price-to-earnings ratio of 77.78, a PEG ratio of 1.24 and a beta of 1.50. Onto Innovation has a 52 week low of $85.88 and a 52 week high of $232.49.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Onto Innovation in a research note on Thursday, January 22nd. Cantor Fitzgerald raised Onto Innovation from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $170.00 to $275.00 in a research note on Monday. Jefferies Financial Group reissued a “buy” rating and set a $300.00 price objective on shares of Onto Innovation in a research note on Friday. Oppenheimer reissued an “outperform” rating and set a $265.00 target price on shares of Onto Innovation in a research report on Friday. Finally, Stifel Nicolaus set a $220.00 price objective on Onto Innovation in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $252.50.

Onto Innovation News Summary

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Company posted record 2025 revenue, completed the Semilab product‑line acquisition, shipped next‑gen Dragonfly systems and disclosed a major HBM agreement that management says is driving AI/inspection demand. Onto Innovation Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Analyst support: Needham raised its price target to $275 and kept a Buy rating, signaling continued bullish institutional views that could underpin shares over the medium term. Benzinga article
• Neutral Sentiment: Management guided Q1 FY2026 EPS to $1.260–1.360 and revenue to $275–285M, which sits slightly above consensus — that guidance implies margin recovery but leaves room for execution risk. Company press release / guidance
• Neutral Sentiment: Management projects >30% growth in advanced‑packaging sales in 2026 and cites a record backlog tied to AI demand — a positive long‑term growth signal but dependent on sustained end‑market strength. Advanced packaging growth article
• Negative Sentiment: Q4 EPS of $1.26 missed the consensus by $0.02 and fell from $1.51 a year ago — the modest miss and y/y earnings decline are the immediate catalyst for the share pullback. Zacks: ONTO misses Q4 estimates
• Negative Sentiment: Shares are trading with elevated volume into the print and remain at a premium valuation (high P/E), so even small earnings misses or execution risk can trigger outsized moves. Investing.com note

Institutional Investors Weigh In On Onto Innovation

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ONTO. NewEdge Advisors LLC raised its holdings in Onto Innovation by 312.5% during the 1st quarter. NewEdge Advisors LLC now owns 4,121 shares of the semiconductor company’s stock worth $500,000 after buying an additional 3,122 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Onto Innovation by 76.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 482,256 shares of the semiconductor company’s stock worth $58,517,000 after purchasing an additional 208,907 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Onto Innovation by 8.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 163,259 shares of the semiconductor company’s stock valued at $19,810,000 after acquiring an additional 13,175 shares during the last quarter. Cetera Investment Advisers lifted its stake in Onto Innovation by 6.3% in the 2nd quarter. Cetera Investment Advisers now owns 4,017 shares of the semiconductor company’s stock valued at $405,000 after purchasing an additional 238 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its position in shares of Onto Innovation by 182.4% in the second quarter. Russell Investments Group Ltd. now owns 6,631 shares of the semiconductor company’s stock valued at $666,000 after buying an additional 4,283 shares during the last quarter. Institutional investors own 98.35% of the company’s stock.

Onto Innovation Company Profile

Onto Innovation (NYSE:ONTO) is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company’s solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.

Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.