At a glance
Onto Innovation Inc is worth $10.98B, about 81 times its fiscal 2025 earnings. Revenue grew 1.8% to $1.01B in fiscal 2025, with 13.6% kept as profit; over 5 years it has grown 12.6% a year. It pays no dividend; it spent $168.5M buying back its shares over FY2021–FY2025. The stock returned +71.2% over the past year with dividends reinvested and +23.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 45.9% in the 2020 crash (S&P 500: 33.7%) and 44.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 7 months after the lows.
The business in plain English
Onto Innovation makes equipment and software that check whether computer chips are being built correctly. Its tools handle metrology (precise measurement of tiny features) and inspection (finding defects) on silicon wafers, the thin discs that chips are made on. It also sells lithography systems that print circuit patterns for advanced packaging, which stacks or links several chips inside one package. Customers include silicon wafer makers, chip fabricators and packaging firms. Product lines include Atlas metrology systems, NovusEdge wafer inspection tools and the JetStep X500 lithography system for large panels.
Equipment sales drive the business. In the fiscal year ended January 3, 2026 (fiscal 2025), revenue was $1.01 billion. Systems and software made up 84.3%, spare parts 8.4% and service 7.3%. Sales lean heavily on Asia. Taiwan supplied 31.7% of revenue, South Korea 27.8%, the US 12%, Japan 9.5% and China 7%.
Demand arrives in waves. Chipmakers buy Onto's measurement tools when they set up production of a new, smaller chip generation, then buy more as output grows. Packaging sales depend more on how many chips are being assembled. The company says growth in artificial intelligence (AI) has lifted demand in both areas. In the fourth quarter of 2025 it bought Semilab USA, adding three product lines for wafer contamination monitoring, materials analysis and surface charge measurement.
Price history
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ONTO +71.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Systems And Software Revenue | $847.8M | 84.3% |
| Parts Revenue | $84.2M | 8.4% |
| Service Revenue | $73.2M | 7.3% |
By geography
| TW | $318.8M | 31.7% |
| KR | $279.4M | 27.8% |
| US | $121.1M | 12% |
| JP | $95.4M | 9.5% |
| CN | $70.7M | 7% |
| Southeast Asia | $64.3M | 6.4% |
| Europe | $55.6M | 5.5% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $343.1M, up 35.3% from a year earlier, and net income was $60.1M (+77.2%).
- For fiscal 2025, revenue was $1.01B (+1.8% year over year; +12.6% a year from FY2020 to FY2025) with a 13.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +12.6% good |
|---|---|
| Operating margin | 13.2% watch |
| Free cash flow margin | 29.8% good |
| Return on equity (FY2025) | 6.5% weak |
| Return on assets (FY2025) | 5.8% watch |
| Net cash (cash minus debt) | $410.4M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $556.5M | $31.0M | $102.2M |
| FY2021 | $788.9M | $142.3M | $163.2M |
| FY2022 | $1.01B | $223.3M | $118.3M |
| FY2023 | $815.9M | $121.2M | $149.4M |
| FY2024 | $987.3M | $201.7M | $213.8M |
| FY2025 | $1.01B | $136.8M | $299.8M |
Valuation snapshot
| Market value | $10.98B |
|---|---|
| P/E ratio | 80.5 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Onto Innovation’s market value went from $1.25B at the end of 2016 to $10.98B on Oct 28, 2026, about 8.8 times as much; since the end of 2025 it is up 42%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $10.98B | +41.9% |
| 2025 | $7.74B | -6.0% |
| 2024 | $8.23B | +9.7% |
| 2023 | $7.50B | +122.6% |
| 2022 | $3.37B | -32.4% |
| 2021 | $4.99B | +114.8% |
| 2020 | $2.32B | +26.9% |
| 2019 | $1.83B | +38.2% |
| 2018 | $1.32B | +3.8% |
| 2017 | $1.28B | +2.1% |
| 2016 | $1.25B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ONTO price data to Oct 28, 2026 | +41.7% | +71.2% | +24.9% | +23.5% | +26.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +41.7% |
| 2025 | -5.3% |
| 2024 | +9.0% |
| 2023 | +124.6% |
| 2022 | -32.7% |
| 2021 | +112.9% |
| 2020 | +30.1% |
| 2019 | +33.7% |
| 2018 | +9.7% |
| 2017 | -0.6% |
| 2016 | +65.5% |
| 2015 | -10.0% |
| 2014 | -11.7% |
| 2013 | +32.1% |
| 2012 | -21.7% |
| 2011 | +43.6% |
| 2010 | +13.2% |
| 2009 | +893.9% |
| 2008 | -88.4% |
| 2007 | +24.6% |
| 2006 | -28.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 89.3% over that stretch · deepest drop along the way 92.6%, back to its old high 11.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.6% over that stretch · deepest drop along the way 45.9%, back to its old high 4.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 42.7% over that stretch · deepest drop along the way 44%, back to its old high 7.4 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 2 sales ($902K), 2 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 29, 2026 | David Brian Miller Director | sell (plan) | $600K |
| Aug 21, 2026 | Susan D Lynch Director | sell (plan) | $302K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.3% | Sep 30, 2025 |
| Vanguard Portfolio Management | 5.53% | Mar 31, 2026 |
| Vanguard Capital Management | 5.23% | Mar 31, 2026 |
ETFs with the most weight in ONTO
| TINY ProShares Nanotechnology ETF | 3.4% |
| LOUP Innovator Deepwater Frontier Tech ETF | 3.29% |
| GTEK Goldman Sachs Future Tech Leaders Equity ETF | 1.11% |
| PEXL Pacer US Export Leaders ETF | 0.92% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 0.67% |
| IBOT Vaneck Robotics ETF | 0.64% |
| MIDE Xtrackers S&P MidCap 400 Scored & Screened ETF | 0.39% |
| NUSC Nuveen ESG Small-Cap ETF | 0.34% |
What could go wrong
- A few big customers drive sales. The largest customers supply a substantial share of revenue, and Taiwan and South Korea together supplied more than half in fiscal 2025. One delayed or canceled large order could cut revenue and cash flow.
- Chip industry spending runs in cycles. Chip industry downturns have sharply cut demand for Onto's systems before. Revenue fell from about $1.01 billion in fiscal 2022 to $816 million in fiscal 2023. Sales also swing as orders shift between quarters.
- Trade limits on sales to China. The company says tariffs and export rules have already hurt its ability to win business from domestic Chinese customers. China supplied 7% of fiscal 2025 revenue, and these barriers may continue.
- Reliance on partner equipment makers. Some Onto measurement tools are built into machines that other equipment companies sell. If those partners sell fewer machines, or develop competing measurement systems of their own, Onto's sales could suffer.
- Bigger rivals and costly vendor switches. Some competitors have far greater resources and could force price cuts. Switching equipment suppliers is expensive for chipmakers, so Onto can struggle to win new customers even when its tools perform better.
- Folding in acquired businesses. Onto bought Semilab USA in the fourth quarter of 2025. Integrating it may prove harder, slower or costlier than expected, and the hoped-for benefits may not arrive. Future acquisitions carry similar risks.
Recent events
- Acquisition or sale of assets completed; Investor presentation or announcement
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Other company announcement
- Shareholder vote results
- Other company announcement
- Quarterly results released
- Major agreement signed; Investor presentation or announcement; Other company announcement
- Quarterly results released
- Quarterly results released
- Executive or board change
For income and retirement investors
Onto Innovation pays no dividend and paid none from fiscal 2021 through fiscal 2025. That means an income investor gets returns only through changes in the share price, and any cash for living expenses would have to come from selling shares. The company does return some cash through buybacks: $168.5 million over fiscal 2021 to 2025, including $75.0 million in fiscal 2025. Even so, the share count fell only 0.4% between October 6, 2021 and July 31, 2026.
The stock has fallen hard in market downturns. It dropped 92.6% in the 2008 financial crisis, 45.9% in the 2020 COVID crash and 44% in the 2022 bear market. Each time it got back to its earlier peak within about a year of the low. In the year to October 28, 2026, its largest drop from a high was 47.5%. A single stock like this carries much more risk than a diversified fund.
Questions investors ask
How does Onto Innovation make money?
Mostly by selling equipment that measures and inspects chips as they are made. In the fiscal year ended January 3, 2026, systems and software brought in 84.3% of its $1.01 billion revenue, spare parts 8.4% and service 7.3%. Customers include silicon wafer makers, chip fabricators and advanced packaging companies. Taiwan (31.7%) and South Korea (27.8%) were the largest sources of revenue, followed by the US at 12%.
Does Onto Innovation pay a dividend?
No. Onto Innovation paid no dividends in fiscal 2021 through fiscal 2025, so the stock offers no income stream. Instead, the company spent $168.5 million on share buybacks over those five years, including $75.0 million in fiscal 2025. Buybacks have not shrunk the share count much: it fell just 0.4% between October 6, 2021 and July 31, 2026. Investors who need regular income would have to sell shares to raise cash.
Is Onto Innovation growing?
Over five years, yes, but unevenly. Revenue rose from $556.5 million in fiscal 2020 to $1.01 billion in fiscal 2025, an average growth rate of 12.6% a year. But fiscal 2025 revenue grew only 1.8%, and net income fell 32.2% to $136.8 million. Growth then picked up. In the quarter ended June 30, 2026, revenue rose 35.3% from a year earlier to $343.1 million, and net income jumped 77.2% to $60.1 million.
Is Onto Innovation stock volatile?
Yes, very. In the year to October 28, 2026, its beta was 3.19. Beta measures how much a stock moves compared with the broad market, so this one tended to move about three times as much as the market. The stock rose 71.2% over that year but fell 47.5% from a high at one point, and it dropped 22.5% in the month to October 28, 2026. Spending on chip equipment rises and falls in cycles, which adds to these swings.
Does Onto Innovation have debt?
Yes, but it held more cash than debt as of June 30, 2026. Total debt was $1.47 billion, against $1.88 billion in cash and investments. That left net cash (cash minus debt) of about $410 million. Shareholders' equity was $1.92 billion. A filing on May 21, 2026 reported a major agreement and a new debt obligation. Holding more cash than debt gives a cushion if chip industry spending slows, though interest costs and repayment terms still matter.