Onto Innovation Inc. (NYSE:ONTO) reported better-than-expected first-quarter financial results and issued second-quarter guidance below estimates.

Onto Innovation reported quarterly earnings of $1.51 per share which beat the analyst consensus estimate of $1.47 per share. The company reported quarterly sales of $267.00 million which beat the analyst consensus estimate of $266.30 million.

Michael Plisinski, chief executive officer of Onto Innovation, said, “We are pleased to report another record quarter for Onto Innovation, underscoring our strong market alignment and operational improvements, which resulted in record cash generation of 35% of revenue. The robust demand in advanced nodes is effectively demonstrating the strength of our optical metrology portfolio, while the packaging market is growing and evolving to require the need for more advanced 2D and 3D inspection and metrology solutions. Our product roadmaps are well aligned with these technology transitions expected late this year and early 2026.”

Onto Innovation said it expects second-quarter adjusted earnings of $1.21-$1.35 per share, versus analysts' estimates of $1.50 per share. The company sees sales of $240.00 million to $260.00 million versus expectations of $269.10 million.

Onto Innovation shares dipped 29.1% to trade at $89.90 on Friday.

These analysts made changes to their price targets on Onto Innovation following earnings announcement.

• Needham analyst Charles Shi maintained Onto Innovation with a Buy and lowered the price target from $230 to $150.
• Benchmark analyst Mark Miller maintained the stock with a Buy and lowered the price target from $230 to $190.

Considering buying ONTO stock? Here’s what analysts think:

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