Zacks Research Boosts Earnings Estimates for Onto Innovation

Key Points

• Zacks Research raised Onto Innovation’s Q3 2026 EPS estimate to $1.73 from $1.35, and also boosted its full-year outlooks for 2026 and 2027, signaling improved expectations for profitability.
• The company recently beat quarterly earnings, reporting $1.42 EPS versus the $1.38 consensus, while revenue rose 9.5% year over year to $291.95 million, essentially in line with estimates.
• Wall Street sentiment remains constructive, with multiple firms issuing Buy or Outperform ratings and an average price target of $310.63, though some commentary notes the stock may look expensive after its recent rally.

Onto Innovation Inc. (NYSE:ONTO - Free Report) - Equities research analysts at Zacks Research upped their Q3 2026 earnings per share (EPS) estimates for Onto Innovation in a note issued to investors on Monday, May 25th. Zacks Research analyst Team now anticipates that the semiconductor company will post earnings per share of $1.73 for the quarter, up from their previous forecast of $1.35. The consensus estimate for Onto Innovation's current full-year earnings is $6.83 per share. Zacks Research also issued estimates for Onto Innovation's Q4 2026 earnings at $1.98 EPS, FY2026 earnings at $6.78 EPS, Q1 2027 earnings at $1.88 EPS, Q2 2027 earnings at $2.24 EPS, Q3 2027 earnings at $2.27 EPS, Q4 2027 earnings at $2.33 EPS and FY2027 earnings at $8.71 EPS.

Several other research analysts have also recently issued reports on ONTO. Evercore reaffirmed an "outperform" rating and set a $315.00 target price on shares of Onto Innovation in a research report on Friday, April 17th. Wall Street Zen upgraded Onto Innovation from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. B. Riley Financial lifted their price target on Onto Innovation from $275.00 to $310.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Oppenheimer set a $370.00 price target on Onto Innovation in a report on Wednesday, May 6th. Finally, Stifel Nicolaus set a $350.00 price target on Onto Innovation and gave the stock a "buy" rating in a report on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Onto Innovation has an average rating of "Buy" and an average price target of $310.63.

Onto Innovation Stock Performance

Shares of Onto Innovation stock opened at $266.86 on Thursday. Onto Innovation has a 52 week low of $89.40 and a 52 week high of $316.00. The stock has a 50 day moving average price of $254.04 and a two-hundred day moving average price of $206.23. The stock has a market capitalization of $13.27 billion, a PE ratio of 124.70, a price-to-earnings-growth ratio of 1.34 and a beta of 1.70.

Onto Innovation (NYSE:ONTO - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The semiconductor company reported $1.42 EPS for the quarter, beating analysts' consensus estimates of $1.38 by $0.04. Onto Innovation had a return on equity of 11.68% and a net margin of 10.32%.The firm had revenue of $291.95 million during the quarter, compared to analysts' expectations of $292.00 million. During the same quarter last year, the firm posted $1.51 earnings per share. The company's revenue for the quarter was up 9.5% compared to the same quarter last year.

Hedge Funds Weigh In On Onto Innovation

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Onto Innovation by 5.5% in the 3rd quarter. Vanguard Group Inc. now owns 5,667,404 shares of the semiconductor company's stock valued at $732,342,000 after acquiring an additional 294,393 shares during the last quarter. William Blair Investment Management LLC grew its holdings in shares of Onto Innovation by 80.3% during the 3rd quarter. William Blair Investment Management LLC now owns 1,981,761 shares of the semiconductor company's stock worth $256,083,000 after acquiring an additional 882,901 shares during the period. Wellington Management Group LLP grew its holdings in shares of Onto Innovation by 1,217.0% during the 3rd quarter. Wellington Management Group LLP now owns 1,398,995 shares of the semiconductor company's stock worth $180,778,000 after acquiring an additional 1,292,772 shares during the period. Franklin Resources Inc. grew its holdings in shares of Onto Innovation by 21.4% during the 4th quarter. Franklin Resources Inc. now owns 1,353,001 shares of the semiconductor company's stock worth $213,585,000 after acquiring an additional 238,500 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of Onto Innovation by 45.4% during the 4th quarter. Geode Capital Management LLC now owns 1,127,532 shares of the semiconductor company's stock worth $178,024,000 after acquiring an additional 352,316 shares during the period. 98.35% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Onto Innovation

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Zacks Research boosted its FY2026 EPS estimate for Onto Innovation to $6.78 from $5.69, signaling stronger expected profitability over the next year.
• Positive Sentiment: The firm also raised FY2027 EPS to $8.71 from $6.95 and lifted quarterly estimates for Q1, Q2, Q3 and Q4 2027, suggesting continued earnings momentum. MarketBeat ONTO coverage
• Positive Sentiment: Separately, Zacks highlighted Onto Innovation’s forecast for more than 30% revenue growth in 2026, supported by AI-driven demand and new Dragonfly and Atlas systems, which could improve investor confidence in the growth story. Onto Innovation Forecasts 30% Revenue Growth for 2026: Can It Deliver?
• Neutral Sentiment: Some longer-range estimates were mixed, with Zacks trimming Q1 2028 EPS while raising FY2028 EPS to $9.40, indicating analysts remain constructive overall but still see some variability in the distant outlook.
• Neutral Sentiment: Additional coverage in tech-stock roundups and “strong buy” lists may be helping sentiment, but these items are less directly impactful than the earnings revisions.
• Negative Sentiment: One valuation-focused article said Onto Innovation looked overvalued after a recent rally, which could temper enthusiasm if investors become more sensitive to the stock’s rich valuation.

Onto Innovation Company Profile

Onto Innovation NYSE: ONTO is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company's solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.

Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.

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