ONTO NYSE Russell 1000 Earnings call
Onto Innovation (ONTO) · Q1 2026 results and valuation
Share price: $215.06 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 5 May 2026 and 19 Feb 2026
Net income up 220.5% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+220.5%
Net income vs Q4 2025
Guidance raised
Net income 33.8M vs 10.5M
Revenue +9.4%
Against the same quarter last year (Q1 2025) it is −47.3%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Upbeat
More upbeat than 83% of company calls
Answers to analysts: very upbeat, in line with the script.
Similar to last call.
3 · What stood out
Guidance ↑
The company raised its Q2 revenue expectation to $320 million to $330 million, representing a 10% increase over previous analyst expectations.
Valuation
Is Onto Innovation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.0% growth a year (3-year revenue growth), the model's fair value is $96.16 a share — the stock trades 124% above it. Today's price assumes 13.6% growth a year.
Current price
$215.06
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.6% for 10 yrs
Fair value / share
$96.16
Buy below
$72.12
Price vs fair value
Overvalued 124%
Price vs buy-below price
Overvalued 198%
Management expects
Revenue +28% · from the Q1 2026 report: “We previously announced on April 16, our Q2 revenue expectation of $320 million to $330 million, representing, at the midpoint, a 10% increase to previous…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
-
Guidance
The company expects revenue growth of more than 30% in 2026.
Source quote
“In total, we expect revenue growth of more than 30% in 2026.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I think the highest growth and the highest contributions to growth or potential share gain opportunities will definitely come from the Dragonfly G5.”
“2026 is off to a strong start for Onto Innovation as we exceeded the high end of our first quarter guidance range across all key financial metrics, including revenue, gross...”
“Momentum should continue into the second half of the year with rising customer expansions enhanced by accelerating new product adoption and a growing backlog, all indicating more than 15% sequential...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2026-01-03 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 291.9M | 266.9M | +9.4% | 266.6M | +9.5% |
| Gross profit | 146.4M | 123.8M | +18.3% | 143.2M | +2.2% |
| Operating income | 33.5M | 13.9M | +141.8% | 63.1M | −46.9% |
| Net income | 33.8M | 10.5M | +220.5% | 64.1M | −47.3% |
| EPS | 0.67 | 0.21 | +219.0% | 1.30 | −48.5% |
| P/E today 121.9 | 95.4 | 59.7 | +35.7 | 27.6 | +67.8 |
Topics
Most discussed now
- New Onto Innovation exceeded expectations in the first quarter, advanced its leadership in advanced packaging with the successful qualification…
- Onto Innovation's visibility continues to strengthen, supported by record backlog, new product momentum, and deep collaboration with...
- From a perspective of 2027, Onto Innovation certainly from those existing customers, it certainly have visibility into stronger demands, as…
- Onto Innovation sees a steady growth in demand for the G5 throughout all 4 quarters.
- Improve the gross margins throughout
Faded since Q4 2025
- Fading Its multiple new product platforms highlighted by its next-generation inspection tools, which Onto Innovation believes will set the bar…
- Fading As evidenced by Onto Innovation's backlog doubling over the last 3 months, visibility for 2026 has dramatically improved as customers…
- Fading Its team is playing a pivotal role across this ecosystem as Onto Innovation works to scale and bring new innovative solutions...
- Fading Several of the discussions Onto Innovation is having with customers are tied around BPAs right now, which will give us better insight...
Latest announcements
Official filings, newest first.
- Acquisition or disposal; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure; Other events · SEC 8-K
- Results of operations · SEC 8-K