ONTO

Onto Innovation (ONTO) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this maker of semiconductor manufacturing equipment is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Onto Innovation, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $2.20 per share for the current quarter represents a change of +139.1% from the number reported a year ago. Over the last 30 days, five estimates have moved higher for Onto Innovation compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 14.13%. For the full year, the earnings estimate of $7.88 per share represents a change of +59.5% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Onto Innovation. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 10.47%. The promising estimate revisions have helped Onto Innovation earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Onto Innovation because of its solid estimate revisions, as evident from the stock's 10.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Onto Innovation surged 6% Tuesday and is up 85% year to date, riding AI-driven demand for its HBM and advanced packaging inspection tools. Camtek's record $133 million quarter and $600 million in YTD bookings, plus NVIDIA's $500 billion AI infrastructure financing deal, confirm accelerating demand across the semiconductor supply chain. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Onto Innovation (NYSE:ONTO) are trading higher midday Tuesday, up 5.9% to $308.51 from Monday's close of $291.35. The semiconductor process control name is riding a positive AI supply chain read-through from peer Camtek's blowout quarter and a broader bid across the group. The primary catalyst is a direct read-through from Camtek (NASDAQ:CAMT), which reported Q2 2026 results on August 10, 2026. Camtek posted record revenue of $133.24 million, topping the $130.19 million consensus, with non-GAAP EPS of $0.78 versus the $0.76 estimate. The bigger tell for Onto investors was the order book. CEO Rafi Amit disclosed that year-to-date bookings have crossed $600 million, with deliveries stretching into 2027. Camtek guided Q3 revenue to $158 million to $160 million, roughly 20% sequential growth, and flagged Advanced Packaging revenue growing approximately 70% between Q1 and Q4 2026. Amit noted the surge is driven by AI-linked HBM memory and chiplet architectures. That is the same tailwind powering Onto's Dragonfly and Atlas platforms. Camtek is running into strength that Onto had already flagged in its own May 5, 2026 Q1 FY2026 8-K filing. Onto delivered record revenue of $291.95 million, up 9.5% year over year, and non-GAAP EPS of $1.42, in line with estimates. Advanced nodes revenue climbed 13% sequentially. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Management guided Q2 FY2026 revenue to $320 million to $330 million, with non-GAAP EPS of $1.65 to $1.73 and non-GAAP operating margin of 28% to 28.6%. The advanced nodes segment is positioned for roughly 25% full-year growth. CEO Mike Plisinski pointed to the Dragonfly G5 inspection system landing qualifications at both a 2.5D logic customer and an HBM customer, alongside a second logic win for the Atlas G6 metrology system in gate-all-around. Those are the exact process nodes where AI capacity is being built. Sentiment across the AI supply chain also benefited from reports Tuesday that NVIDIA (NASDAQ:NVDA) is partnering with Apollo, BlackRock, and other Wall Street firms on a financing platform reportedly aimed at mobilizing more than $500 billion in third-party capital for AI infrastructure. Wells Fargo maintained an Overweight rating with a $315 price target, and analysts described the move as reinforcing NVIDIA's position and turning compute into an investable asset class. If that capital flows through into more data center buildouts, the metrology and inspection tools that qualify HBM stacks and 2.5D logic packages, Onto's core business, sit directly in the path. Onto's move today extends what has already been a strong run. Shares are up roughly 85% year to date and roughly 183% over the past year through Monday's close. The market cap sits near $15.14 billion. Camtek, for its part, is up roughly 49% year to date and jumped 13.1% over the past week heading into today. Other stocks in the semiconductor and advanced packaging space are also rallying today. Cohu (Nasdaq: COHU) is up 4.8%. The company offers optical inspection and metrology, which gets a read-through from Camtek's results. The next major data point is Onto's Q2 FY2026 earnings report, where investors will be looking for confirmation of the $320 million to $330 million revenue guide and any commentary on advanced packaging order flow that would echo Camtek's $600 million YTD bookings tally. Between now and then, keep an eye on whether today's gains hold into the close and whether the stock reclaims its recent highs. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Interested in Onto Innovation Inc.? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 35% year over year to $343 million, while non-GAAP EPS of $1.93 exceeded the high end of guidance. Gross margin reached 57% and operating margin 30%. Robust semiconductor demand: Advanced-node revenue increased about 50% sequentially, while advanced packaging and specialty-device demand drove an 80% full-year growth outlook. Dragonfly inspection orders, including more than $200 million from one OSAT customer, support future HBM and 2.5D packaging growth. Raised outlook and strong visibility: Backlog exceeded $1.1 billion, extending into 2027, prompting management to raise expected second-half revenue growth to at least 25%. Onto forecast third-quarter revenue of $380 million to $400 million and expects operating margin to reach at least 33% by year-end. The Nasdaq's Historic Rally Doesn't Mean the Risk Is Gone Onto Innovation (NYSE:ONTO) reported second-quarter 2026 results above the high end of its guidance range, with revenue, margins and earnings supported by demand for semiconductor process-control systems used in advanced packaging and leading-edge chip manufacturing. Chief Executive Officer Michael Plisinski said the company set quarterly revenue records and entered the second half with backlog exceeding $1.1 billion. He said increasing customer visibility prompted Onto Innovation to raise its outlook for second-half revenue growth to at least 25% from the first half, compared with a prior expectation for 15% growth. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Is AI Really Eating Software? A Wall Street Veteran Says No—Here’s Why “We set new quarterly revenue records with advanced nodes growing 50% quarter-over-quarter, and our inspection business, dominated by Dragonfly systems, growing by 30%,” Plisinski said. Chief Financial Officer Brian Roberts said second-quarter revenue totaled $343 million, up 18% sequentially and 35% from a year earlier. The company reported non-GAAP earnings per share of $1.93, which Roberts said was $0.20 above the high end of its prior guidance range. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Chip Stocks Approaching Buy Points Onto Innovation recorded a 57% gross margin, up 130 basis points from the first quarter and 250 basis points from the fourth quarter of 2025. Operating margin reached 30%, an increase of nearly 500 basis points from the beginning of the year, according to Roberts. The company generated $62 million in operating cash flow during the quarter, slightly exceeding quarterly net income. As of June 30, Onto Innovation held nearly $1.9 billion in cash and short-term investments. → No Hangover: Revisiting Microsoft One Week After Earnings In May, the company completed a $1.5 billion offering of 0% convertible debt due in 2031, generating roughly $1.2 billion in net cash. It used the remaining amount for approximately $200 million of common-stock repurchases, a capped-call transaction and professional fees, Roberts said. Revenue from advanced-node customers rose about 50% from the first quarter to approximately $120 million. Memory represented roughly 60% of that business and grew about 60% sequentially, while logic revenue increased more than 40%. Plisinski said demand broadened across memory, logic and NAND customers. He cited expanded adoption of the Atlas G6 platform for transistor metrology at nodes below 2 nanometers, as well as expected second-half shipments to a major DRAM customer for next-generation memory devices. The company expects advanced-nodes revenue to grow more than 35% for full-year 2026. Plisinski also said the Iris films and integrated metrology product lines are on track for record revenue this year. Advanced packaging and specialty devices accounted for nearly half of second-quarter revenue. Inspection revenue, led by the Dragonfly family, grew 30% sequentially as customers increased spending on 2.5D logic and high-bandwidth memory, or HBM, applications. Onto Innovation raised its full-year advanced-packaging growth outlook to approximately 80%, from a previous projection of 50%. Plisinski said the Dragonfly G5 launch has driven demand from HBM manufacturers and outsourced semiconductor assembly and test, or OSAT, providers serving heterogeneous packaging applications. The company received more than $200 million in Dragonfly orders from one OSAT partner during the quarter. Most of those orders are scheduled for delivery in 2027. Plisinski said approximately 60% to 70% of the more than $1.1 billion backlog is tied to 2026, while 30% to 40% covers 2027. He characterized the backlog as evidence of customers’ confidence in their expansion plans and their desire to secure equipment supply earlier than historical norms. Management said the backlog includes demand for advanced packaging across HBM and 2.5D logic, including purchases by OSATs and a widening customer base, as well as continued demand for advanced-node metrology products. While the company did not provide formal 2027 guidance, Plisinski said discussions with customers have been constructive and Onto Innovation has begun discussing volume purchase agreements for 2027. He said the company does not expect to be capacity constrained, pointing to its in-house factories and extended manufacturing partnerships in Asia. Roberts said the extended-factory strategy, supply-chain localization, lower labor costs and reduced freight expenses contributed to 2026 margin progress. He added that a greater mix of Dragonfly G5 sales could provide further gross-margin support in 2027 because of the platform’s higher average selling price. For the third quarter, Onto Innovation forecast revenue of $380 million to $400 million and said fourth-quarter revenue is expected to be higher than third-quarter revenue. At the midpoint of the third-quarter range, the company expects non-GAAP earnings per share of approximately $2.28, based on a 15% non-GAAP tax rate and slightly more than 50 million shares outstanding. The company expects gross margin to improve by an additional 50 basis points in each of the third and fourth quarters, despite potential pressure from material costs, fuel surcharges and freight expense. It forecast a third-quarter operating margin of 32% and expects to exit 2026 with operating margin of at least 33%. Onto Innovation also highlighted silicon photonics as an emerging opportunity. The company has received more than $50 million in orders related to the technology, with roughly two-thirds expected to ship in 2027. It estimates its served addressable market in silicon photonics could exceed $500 million by 2030. The company plans to host an analyst meeting at the New York Stock Exchange on Dec. 17 to discuss market strategies and an updated financial model. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Onto Innovation Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Onto Innovation Inc. ONTO reported second-quarter 2026 earnings per share of $1.93, which exceeded the Zacks Consensus Estimate by 15%. The bottom line also compared favorably with the prior-year quarter's $1.25. Management expected non-GAAP EPS between $1.65 and $1.73. Onto Innovation reported second-quarter revenue of $343.1 million, marking a 35.3% year-over-year increase. Revenue also rose nearly 18% sequentially, setting a new record for the company's highest quarterly revenue. The top line surpassed both management’s guidance ($320–$330 million) and the Zacks Consensus Estimate of $325.6 million. Key factors driving this strong performance included record revenue from Advanced Nodes, record sales in Specialty Devices, robust growth in Advanced Packaging solutions and ongoing investments by leading logic and memory chip manufacturers. According to management, customer visibility remains high as semiconductor companies continue investing in multi-year expansion initiatives. One of the most notable highlights was the company's backlog surpassing $1 billion for the first time. The company expects these investments to support solid second-half 2026 revenue, sustained AI infrastructure spending and demand that extends well into 2027. The record backlog offers greater revenue visibility and indicates customer confidence despite broader macroeconomic uncertainties. Following the successful launch of Dragonfly G5, Onto Innovation is seeing record demand across a broader customer base, prompting it to raise its full-year advanced packaging growth outlook to about 80% from 50%. Demand is being driven by HBM manufacturers and OSATs supporting AI-focused heterogeneous packaging. During the quarter, the company secured more than $200 million in Dragonfly orders from a single OSAT customer, with most deliveries scheduled for 2027. Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote Advanced Packaging and Specialty Devices accounted for nearly half of second-quarter revenue. Dragonfly inspection revenue rose 30% sequentially, driven by 2.5D and HBM demand. At the same time, other packaging and specialty segments, including power and SDI, declined as expected but are projected to recover to first-quarter levels next quarter. Advanced Nodes revenue increased approximately 50% sequentially to $120 million, reflecting stronger customer spending on next-generation semiconductor technologies required for AI processors and high-performance computing chips. In this category, memory accounted for around 60% of revenue and increased about 60% sequentially, while logic advanced more than 40%. Software and services accounted for the remainder of the second quarter revenue. Non-GAAP gross margin was 57%, up 250 basis points (bps) year over year and 130 bps sequentially, exceeding management's initial target of 200 bps of margin expansion for 2026. Non-GAAP operating income rose to $102.8 million from $65.6 million in the prior-year quarter. Driven by stronger operating leverage, Onto Innovation's operating margin expanded to 30%, up nearly 500 bps from the beginning of the year. Total operating expenses for the quarter were $119.7 million compared with $89.9 million in the previous-year quarter. As of June 30, 2026, the company had $1.9 billion in cash, cash equivalents and marketable securities and $271.6 million of total current liabilities compared with $654.2 million and $214.5 million, respectively, as of March 31. Accounts receivable were $337.4 million. Onto Innovation generated $62 million in cash from operations during the quarter, representing just over 100% of net income. Driven by robust demand and strong execution, Onto Innovation raised its second-half 2026 revenue, margin and EPS outlook. Building on a strong first half, ONTO expects second-half revenue to grow more than 25%, with third-quarter revenue of $380–$400 million and further growth in the fourth quarter. At the midpoint, revenue guidance implies another sequential increase of roughly 14%, suggesting demand remains exceptionally strong. Despite ongoing cost headwinds, including higher material, fuel and freight expenses, Onto Innovation expects gross margin to expand by another 50 bps in each of third and fourth quarters. The company expects gross margin between 57.3% and 57.8%. Onto expects operating margin to improve by 200 bps to 31.5%-32.5% in the third quarter and exceed 33% by year-end. Per management, Onto Innovation is on track to deliver 350 bps of gross margin expansion and more than 750 bps of operating margin improvement in 2026, with further gains expected in 2027. It further expects non-GAAP EPS between $2.18 and $2.38, GAAP EPS of $1.54 to $1.70 and GAAP operating margin of 21.4% to 22.4%. Onto Innovation currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Watts Water Technologies, Inc. WTS reported second-quarter 2026 adjusted earnings of $3.66 per share, up 18.4% from $3.09 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.34 by 9.6%. Net sales rose 18.6% year over year to $763.2 million and topped the consensus mark of $726 million by 5.1%. Organic sales advanced 12.2%, driven by favorable pricing, higher volumes and data center growth. Year-to-date data center sales represented 8% of total sales. TELUS Corporation TU reported second-quarter 2026 adjusted earnings per share of C$0.16, down 27% from C$0.22 a year ago. Adjusted net income fell 26% to C$254 million, while operating revenues and other income declined 3% to C$4,929 million, pressured by weaker TELUS Digital results, lower mobile equipment revenues and reduced other income. Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report TELUS Corporation (TU) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $343 million, up 18% sequentially and 35% year-over-year. Advanced Nodes Revenue: Approximately $120 million, up 50% from Q1. Gross Margin: 57%, up 130 basis points from Q1 and 250 basis points from Q4 2025. Operating Margin: 30%, up nearly 500 basis points from the beginning of the year. Earnings Per Share (EPS): $1.93, exceeding the high end of guidance by $0.20. Cash Flow: $62 million generated from operations, slightly over 100% of net income. Cash and Short-Term Investments: Nearly $1.9 billion as of June 30. Backlog: Record backlog surpassing $1.1 billion. Q3 Revenue Guidance: Expected in the range of $380 million to $400 million. Q3 EPS Guidance: Approximately $2.28 per share at the midpoint. Warning! GuruFocus has detected 3 Warning Signs with PRDO. Is ONTO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue of $343 million, up 18% sequentially and 35% year-over-year, exceeding guidance. Advanced packaging growth outlook raised to ~80% for 2026, driven by strong Dragonfly G5 demand in HBM and 2.5D logic. Record backlog surpassing $1.1 billion, with 30-40% covering 2027, indicating strong future visibility. Gross margin expanded to 57% in Q2, surpassing initial 2026 expansion target, with further gains expected. New growth opportunities in silicon photonics ($50M+ orders) and panel-level packaging, with SAM projected to exceed $500M by 2030. Specialty device revenue (power, SDI) declined sequentially in Q2, though expected to rebound in Q3. Gross margin headwinds from material input costs, fuel surcharges, and freight expenses persist. Dragonfly G5 and Iris G2 contributions to 2026 revenue remain limited, with larger impact deferred to 2027. Supply chain constraints remain a concern, requiring increased inventory and active working capital management. 2027 growth outlook not yet provided, with uncertainty around market conditions and customer capacity plans. Q: Of the $1.1 billion backlog, can you provide some color on the mix and duration dynamics? How does this give you confidence for 2027 revenue and growth potential?A: Michael Plisinski, CEO: The backlog is a strong indicator of our customers' confidence in their expansion plans, as they are issuing purchase orders well in advance of historical norms. Roughly 60-70% of the backlog is tied to 2026, with 30-40% covering 2027. The mix is a continuation of current trends, with strong packaging across memory and logic (HBM and 2.5D logic), including OSATs, as well as advanced nodes. This bodes well for another year of strength in 2027. Q: Can you outline the drivers for the increased inspection growth outlook of 80% this year? Is the Dragonfly G5 a big driver this year, and what could the G5 vs. G3 mix be in 2027?A: Michael Plisinski, CEO: The growth is an expansion of 2.5D, with OSATs picking up more volume, and new innovative packaging technologies. HBM has seen phenomenal growth in both 2D inspection and 3D metrology, along with new applications for subsurface inspection. The G5 mix will increase, but we won't quantify it yet. The excitement around G5 is the new applications it opens up with higher resolution, allowing growth into segments where we weren't as well suited before. Q: With the step-up in second-half revenue growth to 25% and backlog above $1 billion, is business accelerating or moving to a more stable elevated run rate?A: Michael Plisinski, CEO: It's hard to say because we don't get steady streams of orders; we get large chunks after negotiating VPAs. The general feeling is that backlogs are growing, and customers are making longer-term commitments to secure slots for their ramp plans. The better indications of market growth are in the capital expense announcements from our customers. Q: Can you provide an update on the traction for the Dragonfly G5's potential penetration into the front end and the Iris G2?A: Michael Plisinski, CEO: With Iris G2, we've made several shipments and are working through the normal installation, qualification, and performance testing process, which typically lasts 6 to 12 months. Similarly, for the G5 in front-end applications, we have some delivered and are running samples against the incumbent. Customer interest is high, but we'll see bigger contributions from these in 2027, not as much in 2026. Q: How broad-based was the 50% growth in the advanced node business across logic and memory? How much is from new application wins like gate-all-around or next-gen DRAM?A: Michael Plisinski, CEO: The growth was broad-based, with strong growth in NAND off a small base, DRAM, and logic. We saw adoption of the Atlas 5 and even more so the Atlas G6, which is differentiating itself with a much smaller spot size for tighter precision. We added DRAM customers adopting the new technology, in addition to the logic customers discussed last quarter. Brian Roberts, CFO, added that memory was up 60% quarter-over-quarter and logic was north of 40%. Q: How should we think about your relative share between CoWoS, SOIC, and HBM? Is the mix shift a tailwind or headwind for you?A: Michael Plisinski, CEO: Our strategy is to broadly serve the value chain. SOIC is an area where the Dragonfly G5's higher resolution has new opportunities, which would be part of the upside potential. Based on customer feedback, we are not expecting any headwinds going into next year; we are expecting quite nice tailwinds. Q: You highlighted silicon photonics as a new growth opportunity. Which Onto products are being used, and how do you expect demand to scale?A: Michael Plisinski, CEO: It's both inspection and metrology. The biggest traction is in inspection because it has some integrated metrology. For more precise metrology, we see opportunities for the Iris films. As the market scales, we expect a fairly linear ramp of process control technology with volume. We expect the SAM to grow to about $500 million by the end of the decade. Q: Can you clarify the updated stand-alone growth outlook for advanced packaging? Do you expect growth to remain elevated into 2027?A: Michael Plisinski, CEO: We expect advanced packaging to grow at least 80% this year and to grow again into next year. We are not seeing any signs of overcapacity; we are hearing about constraints and pressure from our customers' customers to ramp more capacity. We fully expect additional growth through next year. Q: Is there still gross margin expansion potential in 2027, and could we get to a level that starts with a 6?A: Brian Roberts, CFO: We have a lot of confidence looking into 2027. The contribution from Dragonfly G5 is still a smaller proportion of overall revenue for 2026. As the G5 ramps up and becomes a bigger percentage of the business, there is an average selling price lift that gives us more fuel for gross margin. In 2027, growth will be a combination of the extended factory benefits continuing to scale, along with some ASP growth as the mix changes. Q: How much of the strong results are due to faster industry TAM/SAM growth versus share gains or new product wins?A: Michael Plisinski, CEO: It's a mix of both. The industry is growing aggressively, but we are growing above our peers. Customers are adopting the Dragonfly in new areas at a much stronger pace than we expected three months ago. The metrology business is also expanding its footprint with new applications, such as logic for integrated metrology, which are all share gains. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Onto Innovation Inc. ONTO used its second-quarter 2026 earnings call to raise expectations for the second half, citing stronger advanced packaging demand, broader advanced-node adoption and record customer visibility. Management's key forward signal was backlog above $1.1 billion, with orders increasingly reaching into 2027 as customers secure capacity for AI-driven packaging and next-generation semiconductor production. Chief executive officer Michael Plisinski said second-half revenues should grow 25% or more from the first half, up from the prior 15% expectation, with fourth-quarter revenues above the third quarter. Chief financial officer Brian Roberts guided third-quarter revenues to $380-$400 million. He said the 25% second-half growth level serves as a floor, putting fourth-quarter revenues in the low $400 million at the third-quarter midpoint. CFO Roberts said margins should continue expanding. The third-quarter outlook calls for gross margin of 57.3% to 57.8% and non-GAAP operating margin of 31.5% to 32.5%, while non-GAAP EPS is projected at $2.18 to $2.38. ONTO’s second-quarter non-GAAP EPS of $1.93 exceeded the Zacks Consensus Estimate of $1.68, while revenues of $343.13 million topped the Zacks Consensus Estimate of $325.6 million. Non-GAAP gross margin reached 57%, and operating margin was 30%. Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote Plisinski expects 350 basis points of gross-margin expansion and more than 750 basis points of operating-margin improvement in 2026. Roberts tied much of the progress to extended factories and operating productivity. A B. Riley Securities analyst asked about 2027 margin potential. Roberts said a larger Dragonfly G5 mix can support gross margin through higher average selling prices, while extended factories should continue scaling. Plisinski said customers are committing earlier than historical norms to secure supply. He estimated 60% to 70% of backlog is tied to 2026, and 30% to 40% covers 2027. Plisinski highlighted more than $200 million of Dragonfly orders from one OSAT partner, with most deliveries scheduled for 2027. Demand is strongest in HBM and heterogeneous packaging for AI applications. An Oppenheimer analyst asked whether backlog growth was still accelerating. Plisinski said large orders arrive unevenly around volume purchase agreements, but backlog is growing while shipments also increase. Plisinski raised the 2026 advanced packaging growth outlook to about 80% from 50% last quarter, citing stronger HBM demand, higher OSAT volumes and broader Dragonfly adoption across 2.5D logic and heterogeneous packaging. Plisinski also expects panel-level packaging revenues to more than double year over year, supported by JetStep lithography, Firefly process control and Discover software. Silicon photonics adds another growth vector. Plisinski said Onto has received more than $50 million of related orders, with roughly two-thirds scheduled for 2027, and expects its served addressable market to exceed $500 million by 2030. Roberts said advanced-node revenues rose 50% sequentially to about $120 million. Memory represented about 60% of the total and grew roughly 60% sequentially, while logic increased more than 40%. Plisinski credited expanded Atlas G6 adoption, including new DRAM customer demand. Multiple systems are expected to ship to a major DRAM customer in the second half, while Iris films and integrated metrology are on track for record 2026 revenues. A Jefferies analyst asked about the breadth of the gains. Plisinski said growth spanned NAND, DRAM and logic, with Atlas G6 adoption expanding into new applications and DRAM customers. Plisinski said management was not ready to issue a formal 2027 plan, but identified advanced packaging, broader metrology adoption, silicon photonics and the Rigaku X-ray partnership as growth opportunities. Plisinski also said Onto is not capacity constrained after adding extended-factory capability comparable with its previously stated $2 billion in-house capacity. Management is pairing that flexibility with supply-chain management and targeted product investment. ONTO sports a Zacks Rank #1 (Strong Buy), the top rating in a system designed to identify stronger one-to-three-month performance potential through earnings estimate revisions. Its Value Score is F, Growth Score is D, Momentum Score is F and VGM Score is F. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks framework treats Style Scores as a complement to the Rank, with A and B scores providing stronger confirmation for top-ranked stocks. ONTO's combination is mixed, and the Zacks Rank can change as analysts revise estimates after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WILMINGTON, Mass., August 06, 2026--(BUSINESS WIRE)--Onto Innovation Inc. (NYSE: ONTO) ("Onto Innovation," "Onto," or the "Company") today announced financial results for the second quarter of 2026. Second Quarter Business and Financial Highlights: Record quarterly revenue of $343 million, up nearly 18% sequentially, with revenue, gross margin, operating margin and earnings per share all exceeding the high end of the previously announced non-GAAP guidance range. Advanced Nodes revenue grew 50% sequentially to a new quarterly record, driven by broad-based strengthening demand across logic and memory customers. Specialty Devices and Advanced Packaging revenue also reached an all-time high, supported by strong demand across advanced packaging, including 2.5D logic and high-bandwidth memory, as well as silicon photonics applications. "Onto Innovation is positioned well across several key technology inflections driving next generation AI and high performance compute devices," said Mike Plisinski, chief executive officer of Onto Innovation. "High end-market demand, supported by our team’s solid execution, resulted in record revenue in both advanced nodes and advanced packaging. Visibility continues to be strong with customers maintaining investments in their multi-year growth plans, resulting in a backlog exceeding $1 billion for the first time in company history. With this momentum, we expect a strong second half of 2026, reinforced by demand trends we believe will extend into 2027." Operating Results: The results for the three and six months ended June 30, 2026, include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in the press release. Three months ended June 30, 2026: Revenue and Gross Margin: Revenue of $343.1 million, an increase of 35.3% year-over-year from $253.6 million in the second quarter of 2025. Gross margin of 53.4% as compared to gross margin of 48.2% in the second quarter of 2025. Non-GAAP gross margin of 57.0% as compared to 54.5% in the second quarter of 2025. Operating Income: Operating income of $63.6 million, or 18.5% of revenue, as compared to operating income of $32.2 million, or 12.7% of revenue, in the second quarter of 2025. Non-GAAP operating income of $102.8 million, or 30.0% of revenue, as compared to non-GAAP operating income of $65.6 million, or 25.9% of revenue, in the second quarter of 2025. Net Income and Earnings per Share: Net income of $60.1 million, or diluted earnings per share of $1.21, as compared to net income of $33.9 million, or diluted earnings per share of $0.69, in the second quarter of 2025. Non-GAAP net income of $96.0 million, or non-GAAP diluted earnings per share of $1.93, as compared to non-GAAP net income of $61.3 million, or non-GAAP diluted earnings per share of $1.25, in the second quarter of 2025. Six months ended June 30, 2026: Revenue and Gross Margin: Revenue of $635.1 million, an increase of 22.1% year-over-year from $520.2 million in the first six months of 2025. Gross margin of 51.9% as compared to gross margin of 51.0% in the first six months of 2025. Non-GAAP gross margin of 56.4% as compared to 54.8% in the first six months of 2025. Operating Income: Operating income of $97.1 million, or 15.3% of revenue, as compared to operating income of $95.4 million, or 18.3% of revenue, in the first six months of 2025. Non-GAAP operating income of $180.7 million, or 28.5% of revenue, as compared to non-GAAP operating income of $142.1 million, or 27.3% of revenue, in the first six months of 2025. Net Income and Earnings Per Share: Net income of $93.9 million, or diluted earnings per share of $1.88, as compared to net income of $98.0 million, or diluted earnings per share of $1.99, in the first six months of 2025. Non-GAAP net income of $166.8 million, or non-GAAP diluted earnings per share of $3.35, as compared to non-GAAP net income of $136.1 million, or non-GAAP diluted earnings per share of $2.77, in the first six months of 2025. Cash and Investments: The Company generated cash from operations of approximately $62 million for the second quarter of 2026. The Company ended the second quarter with $1.88 billion of cash and short-term investments on hand. Financial Outlook: For the third quarter ending September 30, 2026, the Company expects the following: Revenue of $380 million to $400 million Gross margin of 57.3% to 57.8% GAAP operating margin of 21.4% to 22.4% Non-GAAP operating margin of 31.5% to 32.5% GAAP diluted earnings per share of $1.54 to $1.70 Non-GAAP diluted earnings per share of $2.18 to $2.38 Webcast & Conference Call Details Onto Innovation will host a conference call at 4:30 p.m. Eastern Time today, August 6, 2026, to discuss its second quarter 2026 financial results and other matters in greater detail. To participate in the call, please dial 800-330-6710 or +1-646-769-9200 (international) and reference conference ID 1351162 at least five (5) minutes prior to the scheduled start time. A live webcast will also be available at www.ontoinnovation.com. To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software. There will be a replay of the conference call available for one year on the Company’s website at www.ontoinnovation.com. Discussion of Non-GAAP Financial Measures In addition to information regarding the Company’s results as determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company has provided in this release non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin, which exclude amortization of intangibles, merger and acquisition-related expenses and benefits, litigation expenses and benefits and other restructuring costs. Non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin can also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability or otherwise are not representative of our ongoing operations, tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We utilize several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operations of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. More specifically, management adjusts for the excluded items for the following reasons: Amortization of intangibles: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to the purchased intangible assets and the term of amortization can vary significantly and are unique to each acquisition or purchase. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations and also facilitates comparisons to peer companies. Merger or acquisition related expenses and benefits: we incur expenses or benefits with respect to certain items associated with our mergers and acquisitions, such as transaction and integration costs, change in control payments, adjustments to the fair value of assets, etc. We exclude such expenses or benefits as they are related to acquisitions and have no direct correlation to the operation of our ongoing business. Restructuring and other: we incur restructuring and impairment charges on individual or groups of employed assets, such as inventory or plant, property & equipment, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financials, these transactions may limit the comparability of our ongoing operations with prior and future periods. Litigation expenses and benefits: we may incur charges or benefits as well as legal costs in connection with litigation and other contingencies unrelated to our core operations. We exclude these charges or benefits, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of ongoing business and operating results. Income tax expense: we estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pretax amount to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment. From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") which include, but are not limited to, statements regarding Onto Innovation’s business momentum and future growth; technology development, product introduction and acceptance of Onto Innovation’s products and services; Onto Innovation’s manufacturing practices and ability to deliver both products and services consistent with its customers’ demands and expectations and strengthen its market position; Onto Innovation’s expectations regarding the semiconductor market outlook, including customers’ potential expansion plans; Onto Innovation’s future quarterly financial outlook; as well as other matters that are not purely historical data. Onto Innovation wishes to take advantage of the "safe harbor" provided for by the Act and cautions that actual results may differ materially from those projected as a result of various factors, including risks and uncertainties, many of which are beyond Onto Innovation’s control. Such factors include, but are not limited to, the Company’s ability to leverage its resources to improve its position in its core markets; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; fluctuations in customer capital spending; the Company’s ability to effectively manage its supply chain and adequately source components from suppliers to meet customer demand; the effects of political, economic, legal, and regulatory changes, including tariffs and trade disputes, or conflicts on the Company's global operations; its ability to adequately protect its intellectual property rights and maintain data security; the effects of natural disasters or public health emergencies on the global economy and on the Company’s customers, suppliers, employees, and business; its ability to effectively maneuver global trade issues and changes in trade and export regulations, tariffs and license policies; the Company’s ability to maintain relationships with its customers and manage appropriate levels of inventory to meet customer demands; the Company’s ability to realize the anticipated benefits of the proposed investment in and strategic partnership with Rigaku Holdings Corporation ("Rigaku"); the Company’s ability to complete the proposed Rigaku transaction on the timing expected or at all; the ability to obtain required regulatory approvals for the proposed Rigaku transaction on the timing expected or at all; and the Company’s ability to successfully integrate acquired businesses and technologies including the Semilab business, and to realize the anticipated benefits of such acquisitions. Additional information and considerations regarding the risks faced by Onto Innovation are available in Onto Innovation’s Form 10-K report for the year ended January 3, 2026, and other filings with the Securities and Exchange Commission. As the forward-looking statements are based on Onto Innovation’s current expectations, the Company cannot guarantee any related future results, levels of activity, performance, or achievements. Onto Innovation does not assume any obligation to update the forward-looking information contained in this press release, except as required by law. About Onto Innovation Onto Innovation is a leader in process control, combining global scale with an expanded portfolio of leading-edge technologies that include: unpatterned wafer quality; 3D metrology spanning chip features from nanometer scale transistors to large die interconnects; macro defect inspection of wafers and packages; metal interconnect composition; factory analytics; and lithography for advanced semiconductor packaging. Our breadth of offerings across the entire semiconductor value chain combined with our connected thinking approach results in a unique perspective to help solve our customers’ most difficult yield, device performance, quality, and reliability issues. Onto Innovation strives to optimize customers’ critical path of progress by making them smarter, faster and more efficient. Headquartered in Wilmington, Massachusetts, Onto Innovation supports customers with a worldwide sales and service organization. Additional information can be found at www.ontoinnovation.com. Source: Onto Innovation Inc. ONTO-I (Financial tables follow) View source version on businesswire.com: https://www.businesswire.com/news/home/20260806980504/en/ Contacts For more information, please contact:Sidney Ho+1 [email protected]

SiTime SITM reported second-quarter 2026 non-GAAP earnings of $2.34 per share, which surpassed the Zacks Consensus Estimate by 21.24% and inched up 3.1% sequentially. The company reported earnings of 47 cents per share in the year-ago quarter.Revenues surged 127% year over year to $157.4 million and beat the consensus mark by 8.5%. Growth was led by communications, enterprise and data center (CED) revenues, which climbed 181% and crossed $100 million for the first time. SiTime Corporation price-consensus-eps-surprise-chart | SiTime Corporation Quote CED revenues increased 34% sequentially. The segment accounted for 64.3% of revenues, supported by demand across optical modules, switches, accelerators and other AI infrastructure systems. Management expects rapid growth to continue as customers transition toward 1.6-terabit optical modules. SiTime expects revenues tied to 1.6T applications to double in 2027, while 800-gigabit demand also grows significantly. Greater synchronization requirements are adding several hundred dollars of timing content per data center rack. Automotive, industrial and aerospace and defense revenues increased 51% year over year and 18% sequentially to $24.8 million. Precision timing adoption continued across autonomous vehicles, industrial automation and defense applications, including position, navigation and timing systems that can operate when GPS is disrupted.Mobile, Internet of Things and consumer revenues jumped 85% year over year and 89% sequentially to $31.4 million. SiTime’s largest customer contributed $22.8 million. Management also highlighted emerging opportunities in smart glasses, wearables, health devices and other personal AI products. Non-GAAP gross margin expanded 890 basis points (bps) year over year and 260 bps sequentially to 67.1%. The annual improvement reflected a stronger product mix and better manufacturing absorption, while the sequential gain primarily came from improved factory utilization.Non-GAAP operating expenses totaled $52.1 million, comprising $25.6 million in research and development costs and $26.5 million in selling, general and administrative expenses. Non-GAAP operating income reached $53.5 million, lifting operating margin to 34% from 10.3% reported in the year-ago quarter. SiTime ended the second quarter of 2026 with $1.92 billion in cash, cash equivalents and short-term investments. The balance included proceeds from $1.35 billion of zero-coupon convertible senior notes due 2031, which helped fund the cash portion of the Renesas timing business acquisition completed July 1.Cash flow from operating activities more than doubled year over year to $40 million from $15.3 million. Capital expenditures were $12.9 million, resulting in free cash flow of $27.1 million. The acquired Timing Products Division from Renesas adds more than 550 clocking products and serves about 10,000 customers. Roughly 70% of its revenues come from communications, enterprise and data center markets, while the remainder is tied to automotive, aerospace and industrial applications.SITM management expects the division to contribute approximately $85 million in third-quarter revenues. The company is prioritizing customer continuity, supply expansion and migration onto SiTime's operating platform while relying on Renesas for manufacturing, testing and supply-chain support during the transition period. For the third quarter of 2026, SiTime expects combined revenues of $285-$295 million. Excluding the acquired business, core SiTime revenues are projected at $200-$210 million, representing roughly 30% sequential growth at the midpoint, with CED again expected to deliver triple-digit year-over-year growth.Non-GAAP gross margin is forecast at approximately 68%, plus or minus one percentage point. Operating expenses are expected between $80 million and $85 million, while non-GAAP earnings are projected at $3.50-$3.65 per share. SiTime currently has a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Onto Innovation ONTO, Inuvo INUV and Kimball Electronics KE. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Onto Innovation, Inuvo and Kimball Electronics are set to report their quarterly results on Aug. 6, 11 and 12, respectively. Year to date, shares of Kimball Electronics and Inuvo have dropped 3.7% and 56%, respectively, while Onto Innovation have jumped 74.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SiTime Corporation (SITM) : Free Stock Analysis Report Inuvo, Inc (INUV) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Onto Innovation (ONTO) came out with quarterly earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.88%. A quarter ago, it was expected that this maker of semiconductor manufacturing equipment would post earnings of $1.38 per share when it actually produced earnings of $1.42, delivering a surprise of +2.9%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Onto Innovation, which belongs to the Zacks Nanotechnology industry, posted revenues of $343.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.38%. This compares to year-ago revenues of $253.6 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Onto Innovation shares have added about 74.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Onto Innovation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Onto Innovation was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.92 on $346.37 million in revenues for the coming quarter and $7.14 on $1.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Nanotechnology is currently in the top 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, ServiceTitan Inc. (TTAN), has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Onto Innovation (ONTO) reported revenue of $343.13 million, up 35.3% over the same period last year. EPS came in at $1.93, compared to $1.25 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $325.6 million, representing a surprise of +5.38%. The company delivered an EPS surprise of +14.88%, with the consensus EPS estimate being $1.68. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Onto Innovation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenue- South Korea: $100.61 million versus $81.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change. Geographic Revenue- China: $14.71 million compared to the $26.93 million average estimate based on two analysts. The reported number represents a change of -15.2% year over year. Geographic Revenue- Japan: $9.48 million versus the two-analyst average estimate of $32.78 million. The reported number represents a year-over-year change of -71.9%. Geographic Revenue- Taiwan: $106.41 million compared to the $101.27 million average estimate based on two analysts. The reported number represents a change of +62.2% year over year. Geographic Revenue- United States: $84.37 million versus $43.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +206.2% change. Revenue- Systems and software: $294.04 million versus $272.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +37.1% change. Revenue- Service: $20.38 million versus $24 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change. Revenue- Parts: $28.71 million versus $30.13 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +44.7% change. View all Key Company Metrics for Onto Innovation here>>> Shares of Onto Innovation have returned -5.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sandisk SNDK reported fourth-quarter fiscal 2026 non-GAAP earnings of $39.25 per share that beat the Zacks Consensus Estimate by 14.63% and jumped 68% sequentially. The company reported earnings of 29 cents per share in the year-ago quarter. Revenues surged 371.6% year over year to $8.97 billion and beat the consensus mark by 8%. Sequentially, revenues surged 51%. Stronger pricing, higher volumes and rapid Datacenter growth drove the upside, with Datacenter revenues hitting $2.98 billion in the reported quarter. Sandisk Corporation price-consensus-eps-surprise-chart | Sandisk Corporation Quote Sandisk said roughly one-third of the sequential increase came from higher volumes, while two-thirds came from higher pricing. The mix shift toward higher-value customers also supported the company’s revenue expansion. The top line also exceeded management’s prior guidance range of $7.75-$8.25 billion. Datacenter revenues surged 103% sequentially. Growth reflected broader adoption of compute-focused TLC enterprise solid-state drives across hyperscale and AI infrastructure customers. Sandisk also began revenue shipments of its QLC Stargate platform, expanding its portfolio for high-capacity AI data lakes. Edge revenues were $5.43 billion, up 48% sequentially and 392% year over year. Management highlighted demand shifting toward AI-enabled devices and premium configurations, which support higher storage content in smartphones and PCs. Consumer revenues fell 32% sequentially and 5% year over year to $556 million. Sandisk has signed new business model agreements with eight Datacenter and Edge customers. These contracts have a weighted average duration of more than four years and include fixed and variable pricing elements with floors and ceilings.The agreements represent minimum contracted revenues of $93.9 billion at floor pricing. Remaining performance obligations were $59.8 billion at quarter-end and would have been $91.1 billion including two agreements signed afterward. Financial guarantees totaled $16.5 billion. Sandisk expects the contracts to cover more than half of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits. Non-GAAP gross margin expanded to 84.6% from 78.4% in the previous quarter and 26.4% reported in the year-ago quarter. The result exceeded management’s 79-81% guidance range.Non-GAAP operating expenses were $484 million, representing 5.4% of revenues, compared with 7.5% in the previous quarter. Year over year, operating expenses increased 20%.Non-GAAP operating margin rose to 79.2% from 70.9%, reflecting strong revenue growth and cost leverage. Sandisk ended the quarter with $4.76 billion in cash and cash equivalents after repurchasing 2.836 million shares for $4.5 billion. The board authorized an additional $14 billion repurchase program, lifting remaining authorization to $15.5 billion.Cash flow from operations was $7.13 billion. Adjusted free cash flow totaled $5.04 billion, excluding $1.94 billion of customer prepayments and deposits related to the new business models. Gross capital expenditures were $562 million, or 6.3% of revenues. For the first quarter of fiscal 2027, Sandisk expects revenues of $10.3-$10.8 billion. Sequential growth is projected to come from both bit growth and modest price increases.Non-GAAP gross margin is expected between 83% and 85%, with operating expenses of $520-$540 million. Non-GAAP earnings are expected at $44-$46 per share. Sandisk expects fiscal 2027 sellable bit growth in the mid-teens as it carries higher inventory to support customer commitments. Currently, Sandisk sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Onto Innovation ONTO, Inuvo INUV and Kimball Electronics KE. Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Onto Innovation, Inuvo and Kimball Electronics are set to report their quarterly results on Aug. 6, 11 and 12, respectively. Year to date, shares of Kimball Electronics and Inuvo have dropped 3.7% and 56%, respectively, while Onto Innovation have jumped 74.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sandisk Corporation (SNDK) : Free Stock Analysis Report Inuvo, Inc (INUV) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research