Onto Innovation (ONTO) Investor presentation summary

2026 growth outlook and market alignment

• AI-related revenue projected to reach 61% in 2025, up from ~16% in 2023, with further improvement expected in 2026.

• Stronger growth anticipated in the second half of 2026, driven by increased AI investment.

• Expanding opportunities in AI market segments estimated at ~$1 billion, with leadership in advanced packaging, high bandwidth memory, and photonics.

Product innovation and technology leadership

• Next-generation Dragonfly system offers enhanced sensitivity (<0.3μm), faster throughput, and exclusive imaging techniques.

• Dragonfly tools have shipped to three customers, with additional orders expected in Q1.

• Charge metrology solutions extend value in chiplet architectures and power semiconductors by identifying critical defects early.

• New applications in 2025 target AI packaging, die warpage, micro-bump metrology, and hybrid bonding defects.

Financial performance and operational improvements

• Operating income in 2026 expected to benefit from new products and factory output, with >50% remote factory shipments in Q4.

• Tariff mitigation measures projected to improve gross margin by 100bps in 1H 2026.

• Semiconductor diagnostic product lines (Semilab US) forecasted to generate $120M in revenue and accretive margin for 2026.