Onto Innovation(NYSE) ONTO

Onto Innovation Inc. NYSE:ONTO makes tools to check computer chips for flaws. These tools help factories build better electronics faster. The company supports businesses making smartphones and car parts.

Tools for Perfect Microchips

• Systems and software: Process control tools for chip inspection and lithography; accounted for 85.7% of revenue in the three months ended June 30, 2026.
• Parts: Replacement components for existing hardware systems; represented 8.4% of revenue in the three months ended June 30, 2026.
• Services: Technical support and maintenance contracts; provided 5.9% of revenue in the three months ended June 30, 2026.

Buying and Building for Growth

• Integrated Semilab USA LLC to broaden the range of measurement tools available to semiconductor customers.
• Entered an agreement in April 2026 to acquire a 27% stake in Rigaku Holdings Corporation for $710 million.
• Issued $1.5 billion in senior notes in May 2026 to fund growth initiatives and strengthen the balance sheet.
• Terminated a $500 million bridge loan facility in May 2026 following a successful capital raise.

What Makes the Business Unique

Onto Innovation provides process control solutions for both front-end wafer fabrication and back-end device packaging. Its proprietary software scales from individual tools to entire factory-wide integration systems to enhance manufacturing productivity.

Measuring Success by the Numbers

• Revenue was $343.1 million in the three months ended June 30, 2026, up 35.3% year over year.
• Gross profit was 53.4% of revenue in the three months ended June 30, 2026, up from 48.2% year over year.
• Cash, cash equivalents, and marketable securities totaled $1.9 billion as of June 30, 2026.
• Net income reached $60.1 million in the three months ended June 30, 2026.

The Big Picture

Onto Innovation has transitioned from a specialized tool maker to a comprehensive provider of semiconductor manufacturing solutions. Its expansion into advanced packaging and software positions the company within the evolving microelectronics industry.