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

Onto Innovation (NYSE:ONTO) issued its earnings results on Thursday. The semiconductor company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.28 by ($0.02), FiscalAI reports. The business had revenue of $266.87 million for the quarter, compared to analysts’ expectations of $265.78 million. Onto Innovation had a net margin of 17.46% and a return on equity of 13.11%. The business’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.51 earnings per share. 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 Up 2.5%

NYSE:ONTO traded up $5.54 during trading hours on Thursday, hitting $225.54. 1,441,965 shares of the stock traded hands, compared to its average volume of 944,542. The company has a market cap of $11.05 billion, a price-to-earnings ratio of 63.71, a price-to-earnings-growth ratio of 1.22 and a beta of 1.50. Onto Innovation has a 1 year low of $85.88 and a 1 year high of $229.87. The stock has a 50 day moving average price of $191.11 and a 200 day moving average price of $148.64.

Onto Innovation News Summary

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

• Positive Sentiment: Company guided Q1 FY2026 above consensus — EPS guidance of $1.260–$1.360 (vs. $1.29 consensus midpoint) and revenue guidance of $275M–$285M (vs. $272M consensus), signaling better near‑term demand and helping upside expectations. Onto Innovation Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Operational highlights: record 2025 revenue, completion of the Semilab product‑line acquisition, shipments of next‑gen Dragonfly systems and a major HBM (high‑bandwidth memory) agreement — all supportive of longer‑term growth and margin expansion. Onto Innovation Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Analyst support: Cantor Fitzgerald upgraded the stock and Zacks Research reiterated/raised estimates and maintains bullish coverage, which can attract momentum flows. Cantor Fitzgerald upgrades Onto Innovation (ONTO) Are You Looking for a Top Momentum Pick? Why Onto Innovation (ONTO) is a Great Choice
• Neutral Sentiment: Q4 results were essentially in line on revenue but EPS missed narrowly — reported EPS $1.26 vs. Street ~ $1.27–$1.28, with revenue ~$266.9M (near expectations). The small miss tempers the beat from guidance but isn’t a major operational red flag. Onto Innovation (ONTO) Misses Q4 Earnings Estimates
• Negative Sentiment: Mixed analyst signaling: Stifel raised its price target (to $215) but maintained a “hold” rating — a reminder that some sell‑side views may cap upside even as others upgrade. This could limit immediate multiple expansion. Benzinga

Institutional Investors Weigh In On Onto Innovation

A number of institutional investors have recently bought and sold shares of ONTO. Parallel Advisors LLC increased its stake in Onto Innovation by 20.6% in the 4th quarter. Parallel Advisors LLC now owns 339 shares of the semiconductor company’s stock worth $54,000 after acquiring an additional 58 shares during the last quarter. Smartleaf Asset Management LLC increased its position in Onto Innovation by 8.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,165 shares of the semiconductor company’s stock worth $186,000 after purchasing an additional 92 shares during the last quarter. Transamerica Financial Advisors LLC raised its stake in Onto Innovation by 188.5% during the fourth quarter. Transamerica Financial Advisors LLC now owns 176 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 115 shares in the last quarter. CIBC Private Wealth Group LLC raised its stake in Onto Innovation by 109.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 245 shares of the semiconductor company’s stock valued at $39,000 after purchasing an additional 128 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its position in Onto Innovation by 0.9% during the third quarter. Public Employees Retirement System of Ohio now owns 15,486 shares of the semiconductor company’s stock valued at $2,001,000 after purchasing an additional 140 shares during the last quarter. Hedge funds and other institutional investors own 98.35% of the company’s stock.

Wall Street Analysts Forecast Growth

ONTO has been the subject of a number of research reports. Stifel Nicolaus upped their price objective on Onto Innovation from $180.00 to $215.00 and gave the company a “hold” rating in a research report on Wednesday. Needham & Company LLC upped their price target on shares of Onto Innovation from $200.00 to $260.00 and gave the company a “buy” rating in a research report on Tuesday, January 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Onto Innovation in a report on Thursday, January 22nd. B. Riley Financial boosted their target price on shares of Onto Innovation from $180.00 to $240.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Finally, Jefferies Financial Group upped their target price on shares of Onto Innovation from $170.00 to $200.00 and gave the company a “buy” rating in a report on Monday, December 15th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Onto Innovation currently has an average rating of “Moderate Buy” and a consensus target price of $222.50.

About Onto Innovation

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.