Onto Innovation Inc.
- Open
- 273.23
- Day high
- 276.28
- Day low
- 250.78
- Prev close
- 272.62
- Volume
- 435K
- Mkt cap
- $12.7B
- P/E (TTM)
- 118.5
- EPS (TTM)
- $2.16
- P/B
- 6.0
- P/S
- 12.4
- Yield
- —
- Per share
- —
Onto Innovation Inc. (ONTO) is a Technology company listed on NYSE. The stock is up 179% over the past year. Drillr has 1 published research article covering ONTO.
Onto Innovation Inc. (ONTO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ONTO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $1.38 | $1.42 | +2.9% | $292M | -0.0% |
| Feb 19, 2026 | $1.28 | $1.26 | -1.6% | $267M | -0.2% |
| Nov 6, 2025 | $0.89 | $0.92 | +2.9% | $218M | -0.9% |
| Aug 7, 2025 | $1.27 | $1.25 | -1.6% | $254M | +14.5% |
| May 8, 2025 | $1.47 | $1.51 | +2.7% | $267M | -0.7% |
| Feb 6, 2025 | $1.41 | $1.51 | +7.1% | $264M | -1.3% |
| Oct 31, 2024 | $1.32 | $1.34 | +1.5% | $252M | -2.7% |
| Aug 8, 2024 | $1.20 | $1.32 | +10.0% | $242M | +2.9% |
| May 9, 2024 | $1.08 | $1.18 | +9.3% | $229M | +2.8% |
| Feb 8, 2024 | $0.99 | $1.06 | +7.1% | $219M | +4.7% |
| Nov 9, 2023 | $0.95 | $0.96 | +1.1% | $207M | -3.7% |
| Aug 10, 2023 | $0.83 | $0.79 | -4.8% | $191M | -6.1% |
ONTO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 22, 2026 | SEAMS CHRISTOPHER Adirector | Grant | 761 | — |
| May 22, 2026 | MILLER DAVID BRIANdirector | Grant | 761 | — |
| May 22, 2026 | Kelley Stephen Douglasdirector | Grant | 761 | — |
| May 22, 2026 | SCHWARTZ STEPHEN Sdirector | Grant | 761 | — |
| May 22, 2026 | Lynch Susan Ddirector | Grant | 761 | — |
| May 22, 2026 | Su Maydirector | Grant | 761 | — |
| May 18, 2026 | YALDAEI RAMILofficer: Chief Operating Officer | Tax | 218 | $271.77 |
| May 18, 2026 | YALDAEI RAMILofficer: Chief Operating Officer | Tax | 625 | $271.77 |
| May 18, 2026 | OH Yoon Ahofficer: SVP, Gen Counsel & Corp Sec | Tax | 530 | $271.77 |
| Mar 4, 2026 | Plisinski Michael Pdirector, officer: Chief Executive Officer | Grant | 14,479 | — |
| Mar 4, 2026 | Dolev Idoofficer: EVP, Prod Solutions Grp | Tax | 819 | $207.50 |
| Mar 4, 2026 | YALDAEI RAMILofficer: Chief Operating Officer | Grant | 1,548 | — |
| Mar 4, 2026 | Chen Shirleyofficer: SVP Customer Success | Grant | 2,523 | — |
| Mar 4, 2026 | Chen Shirleyofficer: SVP Customer Success | Grant | 1,261 | — |
| Mar 4, 2026 | Dolev Idoofficer: EVP, Prod Solutions Grp | Grant | 3,440 | — |
Source: ONTO SEC Form 4 filings, latest May 22, 2026. For informational purposes only — not investment advice.
See the full ONTO insider & 13F page →Onto Innovation Inc. company profile
Overview
Onto Innovation Inc. (NASDAQ:ONTO) is a semiconductor process control equipment manufacturer founded in 1940 and headquartered in Wilmington, Massachusetts. The company was formerly known as Rudolph Technologies before becoming Onto Innovation following its October 2019 initial public offering. Onto Innovation specializes in designing, developing, manufacturing, and supporting advanced process control tools that perform macro defect inspection, optical metrology, lithography systems, and process control analytical software for the global semiconductor industry.
Business
Onto Innovation operates in the semiconductor equipment industry, specifically focusing on process control and metrology solutions that help semiconductor manufacturers improve yield and quality during chip production. The semiconductor manufacturing process is extraordinarily complex, requiring precise measurement and inspection at multiple stages to ensure chips meet specifications and function properly. The company's core products fall into three main categories. Process control tools perform macro defect inspection and 2D/3D optical metrology, which means they can detect tiny flaws and measure microscopic features on semiconductor wafers with extreme precision. Lithography systems help create the intricate patterns on semiconductor chips by projecting light through masks onto silicon wafers. Process control analytical software provides data analysis and factory-wide monitoring capabilities that help manufacturers optimize their production processes. Onto Innovation's business is organized into three main segments: 1. Specialty Devices and Advanced Packaging represents approximately 64% of revenue and focuses on advanced packaging technologies, power semiconductors, and specialty applications like LED manufacturing and MEMS devices. This segment has grown significantly due to AI chip packaging demands. 2. Advanced Nodes accounts for roughly 18% of revenue and serves leading-edge semiconductor manufacturers producing the most advanced logic and memory chips, including support for next-generation technologies like gate-all-around transistors. 3. Software and Services comprises about 18% of revenue and includes software licensing, spare parts, and support services that provide recurring revenue streams. The company serves semiconductor device manufacturers, silicon wafer producers, and manufacturers of various electronic components including LED, power devices, RF filters, and data storage systems across both traditional semiconductor applications and emerging markets like electric vehicles and renewable energy.
Revenue model
Onto Innovation generates revenue primarily through equipment sales to semiconductor manufacturers, with additional recurring income from software licensing, spare parts, and services. The company's customers are typically large semiconductor foundries, memory manufacturers, and specialty device producers who purchase Onto Innovation's tools to improve manufacturing yield and quality control. The business model benefits from several revenue streams. Equipment sales constitute the largest portion, with systems ranging from hundreds of thousands to several million dollars depending on complexity. The company also generates substantial recurring revenue through software licensing, spare parts sales, and technical support services, which typically carry higher profit margins than equipment sales. Several factors influence Onto Innovation's profitability and margins. Semiconductor industry cyclicality significantly impacts demand, as customers adjust capital expenditures based on market conditions and technology transitions. The company's margins benefit from technology leadership positions in specialized applications like AI packaging and advanced node metrology, where it can command premium pricing. Manufacturing scale and operational efficiency improvements help reduce costs, while product mix variations affect overall margins since software and services typically generate higher margins than hardware sales. The company faces margin pressure from competitive dynamics in mature markets and customer concentration risk, as a significant portion of revenue comes from a relatively small number of large semiconductor manufacturers. Geopolitical factors and trade policies can impact costs and market access, while technology transitions in the semiconductor industry create both opportunities for new high-margin products and risks of product obsolescence. Currency fluctuations and supply chain disruptions also affect profitability, particularly given the global nature of semiconductor manufacturing.
Competitive moat
Onto Innovation possesses a moderate but meaningful competitive moat built primarily on technological expertise, customer relationships, and switching costs. The company's strongest moat lies in its specialized process control technologies for advanced applications like AI packaging inspection and gate-all-around transistor metrology, where it has developed proprietary solutions that are difficult to replicate and deeply integrated into customer manufacturing processes. The company benefits from high switching costs once its equipment is installed in semiconductor fabs, as replacing process control tools requires extensive requalification, potential production disruptions, and significant engineering resources. Customer relationships developed over decades provide another defensive element, as semiconductor manufacturers typically prefer working with proven suppliers for mission-critical process control applications. However, Onto Innovation's moat faces several challenges. The company operates in a highly competitive market with well-funded competitors including Applied Materials, KLA Corporation, and other established players who have broader product portfolios and larger R&D budgets. The semiconductor equipment industry is also subject to rapid technological change, requiring continuous innovation to maintain competitive positions. The company's moat is application-specific rather than universal - while it may have strong positions in certain niches like advanced packaging inspection, it faces intense competition in broader markets. Additionally, the cyclical nature of semiconductor capital spending and customer concentration among a few large manufacturers limits pricing power and creates vulnerability to market downturns. The moat is further challenged by the potential for technological disruption and the need for substantial ongoing R&D investment to maintain technological leadership in rapidly evolving semiconductor manufacturing processes.
Risks & safety
Onto Innovation demonstrates a strong financial position with minimal solvency risk and reasonable valuation metrics, though trading at premium levels reflecting growth expectations. • Cash and liquidity: $204 million in cash and short-term investments with minimal debt (debt-to-equity ratio of 0.008), providing substantial financial flexibility • Profitability: Strong operating cash flow of $92 million in Q1 2025, with consistent free cash flow generation of $84 million • Balance sheet strength: Current ratio of 8.4x indicates excellent short-term liquidity, with total assets of $2.1 billion against minimal liabilities • Valuation metrics: Trading at 23.4x P/E ratio and 23.0x EV/EBITDA, reflecting premium valuation typical of growth-oriented semiconductor equipment companies • Cyclical considerations: Revenue volatility inherent to semiconductor equipment industry creates earnings unpredictability, though company has demonstrated resilience through cycles • Market position: Specialized focus provides some protection but also creates concentration risk in specific semiconductor market segments
Recent development
Over the past few years, Onto Innovation has executed several strategic initiatives to capitalize on major semiconductor industry trends, particularly the artificial intelligence boom and advanced packaging revolution. The company has significantly expanded its presence in AI-related semiconductor packaging, with AI packaging revenue more than doubling in 2024 and representing over 50% of its advanced packaging business. The company has made strategic acquisitions to broaden its technology portfolio, including Lumina Instruments for laser-based inspection capabilities and the lithography business from Kulicke & Soffa, enhancing its ability to serve advanced packaging applications. These acquisitions complement internal R&D efforts focused on next-generation technologies like gate-all-around transistor metrology and advanced 3D inspection capabilities. Onto Innovation has also positioned itself for emerging technology transitions, developing new metrology solutions for high-bandwidth memory (HBM) and 3D NAND applications while expanding its footprint in power semiconductors driven by electrification trends. The company has secured significant customer commitments, including $300 million in volume purchasing agreements primarily focused on advanced packaging and gate-all-around applications. To address geopolitical challenges and supply chain resilience, the company is accelerating manufacturing capabilities in Asia to mitigate potential tariff impacts. Recent product launches include new 2.5D inspection tools and enhanced Dragonfly inspection systems that have gained traction with leading semiconductor manufacturers, positioning the company to benefit from continued semiconductor industry evolution and the growing complexity of chip manufacturing processes.
ONTO company profile · for informational purposes only — not investment advice.
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