Onto Innovation Reports Strong Financial Results for 2025

Onto Innovation Inc. (NYSE: ONTO) has released its financial results for the fourth quarter and full year of 2025, reporting a remarkable record revenue of $267 million for the fourth quarter and a total annual revenue exceeding $1 billion at $1.005 billion. This significant achievement underscores the company’s robust performance amid a transformative period for the semiconductor industry driven by advancements in artificial intelligence (AI) and increased capital equipment spending.

CEO Mike Plisinski expressed optimism regarding the company’s future, stating, “2025 concluded on a strong note for Onto Innovation, highlighted by record revenue for both the fourth quarter and the full year, the successful acquisition of select product lines from Semilab International, and the shipment of multiple next-generation Dragonfly® systems for high-resolution 2D applications to customers beginning their evaluation periods.”

The financial results for the three months ending January 3, 2026, demonstrate a year-over-year revenue increase of 1.1%, climbing from $263.9 million in the fourth quarter of 2024. However, the gross margin saw a decline, recorded at 46.4%, down from 50.2% a year earlier.

Non-GAAP operating income for the fourth quarter was reported at $67.2 million, or 25.2% of revenue, compared to $75.5 million, representing a decrease from the previous year's figures.

For the fiscal year ending January 3, 2026, Onto Innovation reported an annual revenue increase of 1.8% from $987.3 million in 2024 to $1,005.3 million in 2025. The gross margin for the full year was 49.7%, a decrease from 52.2% in the previous year.

Despite the revenue growth, the company noted a decline in both operating and net income compared to 2024, attributing this to various operational and market factors.

A key highlight for Onto Innovation in 2025 was the successful acquisition of specific product lines from Semilab International's materials analysis business. This acquisition is expected to enhance Onto’s capabilities in semiconductor inspection and metrology, allowing the company to broaden its offerings and better meet customer demands.

Additionally, Onto secured a new volume purchase agreement worth over $240 million with a leading high bandwidth memory (HBM) manufacturer. This agreement is set to support the expansion of the company’s Dragonfly® 2D inspection and 3D bump metrology systems through 2027, reinforcing Onto's position in high-growth market segments.

For the first fiscal quarter ending March 31, 2026, Onto Innovation forecasts revenue between $275 million and $285 million, with expectations of a gross margin ranging from 54.6% to 55.6%. The company anticipates GAAP diluted earnings per share between $0.74 and $0.84, and non-GAAP diluted earnings per share projected between $1.26 and $1.36.

As Onto Innovation navigates through a rapidly evolving semiconductor landscape, the company’s strategic acquisitions and robust product offerings position it well for continued growth. The emphasis on high-resolution inspection technologies and the backing of a strong financial performance provide a solid foundation for the company’s ambitions in 2026 and beyond. Investors and stakeholders will be keenly awaiting the outcomes of the ongoing evaluation periods for the next-generation Dragonfly® systems and any further developments from the newly established agreements in the coming quarters.