Onto Innovation Inc Reports Q2 2025 Revenue of $253.6M, GAAP EPS Falls to $0.69, and Sees Strategic Growth Amidst Industry Challenges.

Onto Innovation Inc reported Q2 2025 revenue of $253.6 million, surpassing estimates, but GAAP EPS fell short at $0.69. The company faces challenges with a reduced gross margin of 48.2% and decreased EPS. Onto Innovation's expansion of the Dragonfly 3Di metrology footprint and strong adoption of sub-surface defect inspection systems highlight technological advancements. The acquisition of product lines from Semilab International Zrt. is expected to add over $130 million in annual revenue.

Onto Innovation Inc. (ONTO) reported its Q2 2025 financial results, with revenue surpassing analyst expectations but GAAP EPS falling short. The company's revenue for the quarter reached $253.6 million, an increase of 5% year-over-year, exceeding the consensus estimate of $252.3 million [2]. However, GAAP EPS of $0.69 missed the analyst consensus estimate of $1.27 [2].

The company's gross margin for the quarter was 48.2%, down from 54.5% in Q2 2024. This reduction was attributed to tariff-related expenses and increased R&D costs. Operating income for the quarter was $32.25 million, down from $33.91 million in the same period last year [2].

Onto Innovation's expansion of the Dragonfly 3Di metrology footprint and strong adoption of sub-surface defect inspection systems highlight the company's technological advancements. The company shipped over 20 Dragonfly systems for AI packaging applications and expanded its customer base to over 10 customers [2].

The company also announced a strategic agreement to acquire several synergistic product lines from Semilab International Zrt. for $545 million. The acquisition is expected to add over $130 million in annual revenue, be immediately accretive to both gross and operating margin, and increase first-year earnings per share by more than 10% [3].

Looking ahead, Onto Innovation expects Q3 revenue between $210 million and $225 million, with a gross margin of 53% to 55% and a non-GAAP EPS of $0.75 to $0.95 [2]. The company anticipates a sharp acceleration in AI logic packaging revenue in the fourth quarter, with revenue increasing at least 50% quarter-over-quarter [3].

Analysts remain optimistic about Onto Innovation's prospects, with the current average analyst rating on the shares being "buy" and a median 12-month price target of $140.00, about 35.7% above its August 6 closing price of $90.00 [2].

References:

[1] https://seekingalpha.com/news/4481826-onto-innovation-non-gaap-eps-of-1_25-misses-by-0_03-revenue-of-253_6m-beats-by-2_86m
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX89950B:0-onto-innovation-q2-revenue-beats-estimates/
[3] https://seekingalpha.com/news/4482135-onto-innovation-anticipates-50-percent-ai-packaging-revenue-surge-in-q4-2025-while-advancing