Onto Innovation posts record revenue, guides for 30% growth on AI equipment demand
Strong demand for high-bandwidth memory inspection tools and the upcoming Dragonfly G5 ramp underpin the company’s optimistic 2026 outlook.
Onto Innovation has reported full-year 2025 revenue of $1.005 billion, marking a record high for the semiconductor process control equipment manufacturer. The results, covering the fiscal year ending 3 January 2026, underscore the company’s expanding role in the artificial intelligence infrastructure supply chain, particularly in ensuring the reliability of advanced chip manufacturing.
The firm provided preliminary first-quarter 2026 revenue of $292 million, exceeding its own guidance range of $275 million to $285 million. Management subsequently set second-quarter 2026 guidance between $320 million and $330 million, an 8 per cent increase above prior outlooks. Looking ahead, the company forecast full-year 2026 revenue growth of more than 30 per cent, citing strong demand in high-growth segments such as advanced packaging and high-bandwidth memory.
A key driver of this momentum is the company’s Dragonfly inspection platform. Onto Innovation announced a volume purchase agreement worth more than $240 million with a leading high-bandwidth memory manufacturer for its Dragonfly 2D inspection and 3D bump metrology tools. The contract, which runs through 2027, provides a contracted revenue line that locks in a portion of near-term growth.
The firm also disclosed that its next-generation Dragonfly G5 inspection platform has completed customer qualification. Designed for 2.5D advanced AI packaging, the G5 is expected to begin initial shipments in June 2026. Management anticipates total Dragonfly platform demand to grow by more than 50 per cent in 2026 compared with 2025, targeting the complex architecture required for chiplet-based AI clusters.
Despite the strong financial performance, analysts note that Onto’s customer concentration remains a material risk, with a significant portion of revenue tied to a small number of manufacturers. Additionally, the equipment cycle is inherently lumpy, and competition from larger peers such as Applied Materials and KLA continues to evolve. Nevertheless, the consensus analyst price target sits at approximately $334, against a current share price near $277, implying potential upside as the market digests the raised guidance and product ramp.
