Onto Innovation Earnings Call Transcripts
Fiscal Year 2026
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Q1 revenue and margins exceeded guidance, driven by AI and advanced packaging demand. 2026 revenue is projected to grow over 30%, with advanced packaging and nodes segments leading. Strategic Rigaku partnership and new product wins position the company to outpace WFE market growth.
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AI-driven growth is accelerating, with 61% of 2025 revenue tied to the AI supply chain and a stronger 2026 outlook. Product innovation, especially in Dragonfly and charge metrology, is driving higher margins and new opportunities, while operational shifts to Asia and SDI integration support expansion and profitability.
Fiscal Year 2025
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Record Q4 and annual revenue driven by advanced packaging and AI demand, with strong margin expansion and a doubling backlog supporting robust 2026 growth. Advanced packaging revenue is expected to grow over 30% and advanced nodes in the mid-teens, with continued margin improvement.
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Q3 2025 results exceeded guidance with $218.2M revenue, 54% gross margin, and $0.92 EPS. Advanced packaging and node segments are driving growth, with strong AI and memory demand. Q4 revenue is guided up 15%-21%, and the Semilab acquisition is expected to close soon.
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Strong AI-driven demand and new product adoption are fueling growth, with advanced nodes revenue nearly doubling and robust performance in packaging and metrology. Operational improvements and strategic acquisitions are set to enhance margins and expand market reach.
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Q2 revenue and margins exceeded guidance, driven by strong AI packaging and advanced node demand. The Semilab acquisition will expand the portfolio and be immediately accretive. Q3 is expected to be a low point, with a sharp Q4 rebound anticipated.
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Record Q1 revenue and EPS growth were driven by advanced nodes and AI-related demand, while US tariffs prompted accelerated manufacturing expansion in Asia. Q2 guidance anticipates a sequential revenue dip, with growth resuming in Q4 and new product launches targeting evolving customer needs.
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Revenue and earnings saw strong double-digit growth in 2024, driven by new product launches and expanding market opportunities in AI packaging, Gate-All-Around, and Power Semiconductors. Advanced metrology tools and strategic acquisitions are expanding the addressable market and supporting continued growth through 2026.
Fiscal Year 2024
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Achieved record Q4 revenue of $264M, with 21% annual growth and strong margin expansion. AI packaging, advanced nodes, and power devices drove performance, while new products and secular trends in AI and electrification are expected to fuel future growth.
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Q3 set new records in revenue, margins, and cash flow, driven by advanced packaging and power devices. Acquisitions and new product launches expand market reach, with 2025 growth expected to outpace WFE. HBM and lithography delays present near-term risks, but backlog and demand remain strong.
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The conference highlighted strong growth in advanced packaging, panel-level packaging, and power semiconductors, with technology differentiation in inspection and metrology. Capital intensity is rising with new node transitions, and facility constraints are expected to ease, supporting future demand.
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Q2 revenue and EPS exceeded guidance, driven by strong AI packaging and advanced node demand. Gross margin improved, and record operating cash flow was achieved. Outlook for the second half is positive, with further growth expected in Advanced Packaging and Advanced Nodes.
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Secular trends in advanced nodes, HBM, and packaging are driving strong growth, with technology innovation and process control intensity increasing. The addressable market is expanding rapidly, and financial performance is on track to meet long-term targets, supported by unique product capabilities and a strong competitive position.