Onto Innovation Inc. (ONTO) AI Stock Analysis

Onto Innovation Inc. specializes in advanced process control tools, including macro defect inspection, 2D/3D optical metrology, packaging lithography systems, and process control software across global markets. The company provides standalone systems for macro-defect inspection, packaging lithography, probe card testing and analysis, and transparent and opaque thin film measurements. These tools support manufacturing quality and yield in the semiconductor and advanced packaging sectors. In addition, Onto Innovation offers process control software suites for standalone tools and enterprise-wide deployments to optimize operational efficiencies. Its customers include semiconductor manufacturers, silicon wafer producers, LED and laser device makers, CMOS image sensor developers, power device manufacturers, and RF filter producers.

Onto Innovation expanded revenue from $788.9M in FY2021 to $1.01B in FY2022, before revenue fell 18.8% to $815.9M in FY2023. Revenue recovered to $987.3M in FY2024 and reached $1.01B in FY2025, reflecting a 5-year revenue CAGR of 12.6% from FY2020 to FY2025. Gross margin contracted from 54.4% in FY2021 to 49.7% in FY2025, while operating margin decreased from 19.8% to 13.2%. Net income was $136.8M in FY2025, down from $201.7M in FY2024. For the latest quarter ended June 30, 2026, performance accelerated with year-over-year revenue growth of 35.3% and earnings growth of 75.4%, lifting trailing twelve-month revenue to $1.12B.

As of June 30, 2026, Onto Innovation held $1.88B in cash and short-term investments against total debt of $1.47B, resulting in net cash of $410.4M. Shareholders' equity stood at $1.92B across $3.70B in total assets. The company reported a current ratio of 9.73 and a debt-to-equity ratio of 0.77. In FY2025, operating cash flow reached $328.3M and free cash flow was $299.8M, supporting $28.5M in capital expenditures and $75.0M in share buybacks.

At a last close of $220.70 on October 16, 2026, Onto Innovation trades at a trailing P/E of 83.0x and a forward P/E of 22.8x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its EV to EBITDA ratio of 23.5x trades above the peer median of 16.6x, and its price-to-sales multiple is 9.7x versus the peer median of 2.8x. Over the past year, the stock returned 62.7%, outperforming the S&P 500 SPY return of 16.8%, while its 5-year return of 205.7% outpaced the benchmark's 83.0%.

Wall Street analysts hold 9 Strong Buy and 3 Buy ratings on Onto Innovation, with zero Hold, Sell, or Strong Sell ratings. The mean price target is $387.50, representing an upside of 75.6% from the last close of $220.70. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.44B and EPS of $8.11, representing EPS growth of 64.1%. The company beat EPS estimates in 2 of the last 4 quarters. The next earnings release is scheduled for November 5, 2026.

This page is an AI-written research summary of Onto Innovation Inc. (ONTO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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