Onto Innovation Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.56%.
Did ONTO Beat Earnings? Q1 2025 Results
Onto Innovation kicked off 2025 with a record first quarter, delivering earnings per share of $1.51 against a consensus estimate of $1.47, a 2.90% beat, while revenue of $266.61 million edged past expectations by 0.15% and grew 16.5% year over year. The headline driver behind the strong result was a doubling of advanced nodes revenue on a sequential basis, fueled by broad-based strength across leading-edge DRAM, NAND, and gate-all-around devices, a mix shift that also helped push GAAP gross margin to 54%, up from 50% in the prior quarter. Operational discipline was equally evident, with record cash from operations of $92.00 million representing 35% of revenue and non-GAAP operating margin expanding to 29% from 25% a year ago. Analysts holding buy ratings had pointed to roughly $205.00 price targets heading into the print, and the results largely validated that constructive stance. Looking ahead, the company guided Q2 revenue to $240.00 million to $260.00 million, with non-GAAP diluted EPS of $1.21 to $1.35, as product roadmaps remain aligned with technology transitions expected in late 2025 and early 2026.
- Advanced nodes revenue doubled quarter-over-quarter with growth across leading-edge DRAM, NAND, and gate-all-around devices
- Iris film metrology revenue increased over 25% quarter-over-quarter driven by new customer wins
- Record cash from operations of $92 million, or 35% of revenue
- Seventh consecutive quarter of revenue growth
- GAAP gross margin expanded to 54% from 50% in Q4 2024
“We are pleased to report another record quarter for Onto Innovation, underscoring our strong market alignment and operational improvements, which resulted in record cash generation of 35% of revenue. The robust demand in advanced nodes is effectively demonstrating the strength of our optical metrology portfolio, while the packaging market is growing and evolving to require the need for more advanced 2D and 3D inspection and metrology solutions. Our product roadmaps are well aligned with these technology transitions expected late this year and early 2026.”
Onto Innovation CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025 (quarter ending June 28, 2025), Onto Innovation expects revenue of $240 million to $260 million, GAAP diluted EPS of $0.99 to $1.13, and non-GAAP diluted EPS of $1.21 to $1.35. The company also noted that product roadmaps are well aligned with technology transitions expected late 2025 and early 2026, and that full-year Iris film metrology revenue is tracking toward record levels.
ONTO YoY Financials
Figures from SEC filings and company reports. Not investment advice.