Onto Innovation Posts Record $410 Million Quarter

The Tip Desk · November 9, 2026 · 2 min read

Third-quarter revenue of $409.7 million exceeded the high end of prior non-GAAP guidance, with non-GAAP earnings of $2.44 a share.

Onto Innovation Inc. (ONTO) reported record third-quarter revenue of $409.7 million, up 87.8% from $218.2 million a year earlier and 19% from $343.1 million in the second quarter, with revenue, operating margin and earnings per share all above the high end of previously announced non-GAAP guidance ranges.

The semiconductor process-control company said Advanced Nodes set a quarterly revenue record on adoption of the Atlas G6 OCD system, while Advanced Packaging and Specialty Devices also reached record revenue, primarily on the Dragonfly G5 and Firefly inspection systems. Chief executive Mike Plisinski said demand remained robust as increasingly complex device architectures for next-generation AI and high-performance computing drove greater process-control requirements.

Non-GAAP gross margin rose to 57.6% from 54.0% a year earlier, an additional 60 basis points from 57.0% in the second quarter. GAAP gross margin was 54.8%. Non-GAAP operating income was $133.5 million, or 32.6% of revenue, versus $46.1 million, or 21.1% of revenue, a year earlier. GAAP operating income was $95.4 million, or 23.3% of revenue.

Non-GAAP net income was $120.3 million, or $2.44 a share, versus $45.1 million, or $0.92 a share, a year earlier. GAAP net income was $46.8 million, or $0.95 a share. The GAAP-to-non-GAAP reconciliation for the three months ended September 30, 2026, included $5.6 million of merger-and-acquisition-related expenses, $12.1 million of restructuring and other costs, and $20.3 million of amortization of intangibles.

Cash from operations was approximately $79 million in the third quarter. Cash, cash equivalents and marketable securities ended the quarter at $1.25 billion. In August the company closed on a 27% ownership interest in Rigaku, a purchase previously announced as a planned approximately $710 million transaction expected to close in the second half of 2026. The condensed consolidated statements of operations recorded an unrealized loss on the investment in Rigaku of $40.8 million in the three months ended September 30, 2026.

Backlog increased in the quarter to more than $1.3 billion, from a backlog exceeding $1 billion reported after the second quarter. Plisinski said visibility into customer investment plans extended out multiple years and that the company expects to finish 2026 with revenue growth exceeding 45% year over year.

For the fourth quarter ending December 31, 2026, Onto Innovation expects revenue of $430 million to $450 million, gross margin of 57.7% to 58.3%, GAAP operating margin of 24.4% to 24.8%, non-GAAP operating margin of 33.5% to 34.5%, GAAP diluted earnings of $1.95 to $2.07 a share, and non-GAAP diluted earnings of $2.59 to $2.79 a share.