Onto Innovation (ONTO) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue was $409.7M, up 87.8% YoY and 19% QoQ; revenue, operating margin and adjusted EPS exceeded the high end of prior guidance.

• Backlog exceeded $1.3B, with multi-year customer investment visibility supporting confidence in sequential growth through at least H1 2027.

• 2026 revenue growth is expected to exceed 45% YoY, with strong growth anticipated in 2027.

Financial highlights

• Q3 revenue was $409.7M vs. $218.2M a year earlier; 9M revenue was $1.045B, up 41.5% YoY.

• Q3 GAAP operating income was $95.4M and net income $46.8M; adjusted operating income was $133.5M and adjusted net income $120.3M.

• Q3 diluted EPS was $0.95 GAAP and $2.44 adjusted; 9M diluted EPS was $2.83 GAAP and $5.78 adjusted.

• Q3 cash from operations was ~$79M; cash, equivalents and marketable securities totaled $1.251B at September 30, 2026.

Outlook and guidance

• Q4 revenue guidance is $430M–$450M; midpoint implies more than 7% sequential growth and H2 revenue of $850M, up 34% from H1.

• Q4 gross margin guidance is 57.7%–58.3%; adjusted operating margin is 33.5%–34.5%, with adjusted diluted EPS of $2.59–$2.79.

• Sequential revenue growth is expected through at least H1 2027; 2027 gross margin expansion is expected to average ~50 bps per quarter.

• FY2026 revenue growth is expected to exceed 45% YoY, with a strong 2027 anticipated.