Onto Innovation Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did ONTO Beat Earnings? Q2 2025 Results
Onto Innovation delivered a mixed second quarter for fiscal 2025, beating on revenue while falling just short on the bottom line. The semiconductor metrology company posted Q2 revenue of $253.60 million, topping the consensus estimate of $250.74 million by 1.14% and marking a 4.7% increase year-over-year, yet non-GAAP EPS of $1.25 missed the $1.28 analyst consensus by 2.15%, weighed down by $16.19 million in restructuring charges embedded in cost of revenue that compressed GAAP gross margin to 48.2% from 52.9% a year ago. The quarter's most consequential development, however, was the announced acquisition of Semilab International product lines for roughly $545.00 million in cash and stock, a deal management expects to add more than $130.00 million in annual revenue and be immediately accretive to EPS. Despite a sequential step-down expected in Q3, with guidance calling for revenue of $210.00 million to $225.00 million and non-GAAP EPS of $0.75 to $0.95, CEO Michael Plisinski characterized the period as a low watermark, pointing to an anticipated acceleration in AI packaging spend in Q4 that should return revenue to Q1 and Q2 levels, with momentum carrying into 2026.
- Revenue exceeded midpoint of previously announced guidance range
- Strong adoption of Dragonfly sub-surface defect inspection for AI packaging
- 5% year-over-year revenue growth
- Non-GAAP gross margin expansion to 54.5% from 53.2% year-over-year
“We continue to increase our value to customers through innovative development across our product platforms as evidenced by an expected near doubling of revenue in 2025 in advanced nodes markets, expanded positions in Dragonfly's 3Di interconnect metrology, and validated sensitivity and scan time performance in our next generation inspection Dragonfly system. In addition, the new material characterization capabilities from the pending Semilab acquisition further increases the breadth and depth of our portfolio.”
Onto Innovation CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025 (ending September 27, 2025), Onto Innovation expects revenue of $210 million to $225 million, gross margin of 53% to 55%, non-GAAP operating margin of 18% to 21%, GAAP diluted EPS of $0.52 to $0.72, and non-GAAP diluted EPS of $0.75 to $0.95. The CEO noted Q3 will likely represent a low watermark for the year, with an expected acceleration in AI packaging spend in Q4 returning revenue to Q1/Q2 levels, with continued momentum into 2026. Revenue in advanced nodes markets is expected to nearly double in 2025.
ONTO YoY Financials
Figures from SEC filings and company reports. Not investment advice.