ONTO
Onto Innovation Inc.

Onto Innovation Inc.ONTO

Technology · Semiconductor Equipment & Materials
173.28USD
+11.08%
Nov 08, 2026
ONTO overview ready
Advanced Packaging Process Control Equipment for Semiconductor Yield
Onto is a process-control equipment supplier to semiconductor and advanced-packaging manufacturers, supplying inspection, 3D metrology, lithography, and factory-analytics tools used to improve yield and qualify increasingly complex package interconnects.
Primary theme is lagging
Wafer Fab Equipment is lagging (-27.1pp vs SPY over 21 sessions; 0 of 7 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the durability its demand has shown.
Unremarkable fundamentals
Primary risk
Cyclical semiconductor capital spending impacting equipment demand.
Market Nov 6Filing Jun 30Price action Nov 7Research Oct 9

Conviction Level

PriceAction5.4BusinessPerformance—BusinessQuality7.2Valuation2.4ThemeMomentum1.0A revenue trend needs at least three unbroken comparable quarters, so none is read here.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−27.1pp
Theme return
−32.1%
Beating SPY
0 of 7
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$8.5B
Avg Volume (60D)
1.0M
60 sessions
Revenue Growth YoY
+21.0%
FY2024 vs FY2023
Gross Margin
+50.4%
Trailing twelve months
Operating Margin
+12.0%
Trailing twelve months
Free Cash Flow Yield
+3.0%
Distance from 200DMA
-33.4%
Next Earnings
2026-11-09
P/E
64.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Insufficient evidence

A revenue trend needs at least three unbroken comparable quarters, so none is read here.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthNot enough data
+35%
$343M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +4.7%
  2. -14%
  3. +9.5%
  4. +35%
Earnings growthGrowing
+75%
Diluted EPS $1.21 vs $0.69 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. -36%
  2. -47%
  3. -49%
  4. +75%
Operating marginSwinging
18.5%
+5.8 pp YoY · gross margin 53.4% (+5.3 pp)

Business Quality

7.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
Onto Innovation Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the durability its demand has shown. It trades at a 3.0% free-cash-flow yield, which requires sustained delivery to be justified.

What changed

  • ONTO rose 11.1% in one session
    ONTO closed +11.1% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Onto is a process-control equipment supplier to semiconductor and advanced-packaging manufacturers, supplying inspection, 3D metrology, lithography, and factory-analytics tools used to improve yield and qualify increasingly complex package interconnects.
Opportunity
High opportunity
Investment in localized and geographically diversified advanced-packaging capacity creates demand for the specialized inspection, metrology, lithography, analytics, and yield-control tools needed to qualify and scale complex 2.5D/3D, chiplet, and HBM-enabled packages.
Key risk
Cyclical semiconductor capital spending impacting equipment demand.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

Onto Innovation Inc. designs, develops, manufactures, and supports process control tools used in semiconductor manufacturing, including inspection, metrology, lithography, and analytics systems to improve yield and qualify advanced packaging.

How it earns

The company generates revenue primarily through transactional sales of equipment and software solutions to semiconductor manufacturers.

Products & services
Lithography systems
Process control analytical software
Automated and integrated metrology systems
Silicon wafer all-surface inspection
Macro defect inspection
Automated defect classification and pattern analysis
Yield analysis
Opaque film metrology
Advanced packaging lithography
Process control software
Customers & end markets
Semiconductor manufacturers
Advanced packaging manufacturers
Market position

Niche supplier specializing in process control equipment for advanced semiconductor packaging and inspection.

Demand drivers
High cyclicality

Semiconductor equipment demand is closely tied to cyclical semiconductor industry capital expenditures and technology transitions.

Related companies

Finding other covered companies in the same part of this story…