Operating margins have experienced significant compression, falling from a peak of 23.7% in 2025Q1 to 11.5% in 2026Q1, reflecting the company's high sensitivity to revenue fluctuations.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.03B | 1.01B | 987.32M | 815.87M | 1.01B | 788.9M | 556.5M | 305.9M | 273.78M | 255.1M | 232.78M | 221.69M | 181.22M | 176.24M | 218.49M | 187.2M | 195.31M | 78.66M | 131.04M | 160.13M | 201.17M | 82.92M | 84.25M | 58.5M | 57.45M | 79.4M | 88.11M | 38.1M | 20.1M | 36.7M | 30.3M |
| Revenue Growth % | -1.54% | 1.82% | 21.01% | -18.83% | 27.42% | 41.76% | 81.92% | 11.73% | 7.32% | 9.59% | 5% | 22.33% | 2.83% | -19.34% | 16.72% | -4.15% | 148.3% | -39.97% | -18.17% | -20.4% | 142.61% | -1.58% | 44.01% | 1.84% | -27.65% | -9.88% | 131.25% | 89.55% | -45.23% | 21.12% | 32.89% |
| Cost of Goods Sold | 527.68M | 505.49M | 472.01M | 395.61M | 465.96M | 359.81M | 278.04M | 170.87M | 125.5M | 120.5M | 109.23M | 102.28M | 85.73M | 85.51M | 102.81M | 86.84M | 91.41M | 49.8M | 87.39M | 78.89M | 103.73M | 44.39M | 44.59M | 33.21M | 33.58M | 39.8M | 41.19M | 16.7M | 12.4M | 15.7M | 14.2M |
| COGS % of Revenue | - | 50.28% | 47.81% | 48.49% | 46.36% | 45.61% | 49.96% | 55.86% | 45.84% | 47.24% | 46.92% | 46.14% | 47.31% | 48.52% | 47.06% | 46.39% | 46.8% | 63.32% | 66.69% | 49.27% | 51.56% | 53.53% | 52.93% | 56.78% | 58.45% | 50.12% | 46.75% | 43.83% | 61.69% | 42.78% | 46.86% |
| Gross Profit | 502.93M | 499.77M | 515.31M | 420.25M | 539.22M | 429.09M | 278.45M | 135.03M | 148.28M | 134.59M | 123.55M | 119.41M | 95.49M | 90.73M | 115.67M | 100.35M | 103.9M | 28.85M | 43.65M | 81.24M | 97.44M | 38.53M | 39.65M | 25.29M | 23.87M | 39.6M | 46.91M | 21.4M | 7.7M | 21M | 16.1M |
| Gross Margin % | 48.8% | 49.72% | 52.19% | 51.51% | 53.64% | 54.39% | 50.04% | 44.14% | 54.16% | 52.76% | 53.08% | 53.86% | 52.69% | 51.48% | 52.94% | 53.61% | 53.2% | 36.68% | 33.31% | 50.73% | 48.44% | 46.47% | 47.07% | 43.22% | 41.55% | 49.88% | 53.25% | 56.17% | 38.31% | 57.22% | 53.14% |
| Gross Profit Growth % | - | -3.02% | 22.62% | -22.06% | 25.67% | 54.1% | 106.22% | -8.94% | 10.17% | 8.94% | 3.47% | 25.05% | 5.24% | -21.56% | 15.27% | -3.41% | 260.11% | -33.9% | -46.27% | -16.63% | 152.91% | -2.84% | 56.82% | 5.94% | -39.72% | -15.59% | 119.22% | 177.92% | -63.33% | 30.43% | 43.75% |
| Operating Expenses | 399.62M | 366.84M | 328.2M | 304.18M | 302.51M | 272.68M | 251.78M | 140.07M | 97.19M | 88.31M | 85.85M | 86.61M | 96.8M | 84.13M | 81.41M | 78.88M | 73.28M | 60.99M | 298.6M | 67.68M | 76.2M | 33.15M | 31.95M | 24.83M | 23.27M | 24.14M | 24.48M | 16.6M | 17.2M | 11.8M | 9.9M |
| OpEx % of Revenue | - | 36.49% | 33.24% | 37.28% | 30.09% | 34.56% | 45.24% | 45.79% | 35.5% | 34.62% | 36.88% | 39.07% | 53.41% | 47.74% | 37.26% | 42.14% | 37.52% | 77.54% | 227.87% | 42.27% | 37.88% | 39.98% | 37.92% | 42.44% | 40.5% | 30.4% | 27.79% | 43.57% | 85.57% | 32.15% | 32.67% |
| Selling, General & Admin | 186.28M | 177.03M | 162M | 144.91M | 135.27M | 125.19M | 113.45M | 81.27M | 55.71M | 48.67M | 38.56M | 43.23M | 53.8M | 41.54M | 40.23M | 40.83M | 38.17M | 33.64M | 33.97M | 33.2M | 34.69M | 20.37M | 15.22M | 10.56M | 11.03M | 12.17M | 14.46M | 9.6M | 7.1M | 8.8M | 7.2M |
| SG&A % of Revenue | - | 17.61% | 16.41% | 17.76% | 13.46% | 15.87% | 20.39% | 26.57% | 20.35% | 19.08% | 16.57% | 19.5% | 29.69% | 23.57% | 18.41% | 21.81% | 19.55% | 42.77% | 25.92% | 20.74% | 17.24% | 24.57% | 18.07% | 18.05% | 19.19% | 15.33% | 16.42% | 25.2% | 35.32% | 23.98% | 23.76% |
| Research & Development | 139.05M | 131.98M | 116.77M | 104.44M | 111.95M | 96.12M | 84.58M | 48.36M | 49.05M | 46.99M | 44.96M | 41.23M | 40.58M | 39.99M | 39.33M | 36.3M | 33.39M | 25.99M | 31.64M | 29.99M | 37.46M | 11.9M | 15.85M | 13.39M | 11.83M | 11.63M | 9.02M | 5M | 5.1M | 3M | 2.8M |
| R&D % of Revenue | - | 13.13% | 11.83% | 12.8% | 11.14% | 12.18% | 15.2% | 15.81% | 17.92% | 18.42% | 19.32% | 18.6% | 22.39% | 22.69% | 18% | 19.39% | 17.09% | 33.04% | 24.15% | 18.73% | 18.62% | 14.35% | 18.81% | 22.89% | 20.59% | 14.64% | 10.24% | 13.12% | 25.37% | 8.17% | 9.24% |
| Other Operating Expenses | 4M | 57.83M | 49.44M | 54.82M | 55.28M | 51.37M | 53.75M | 10.45M | 1.53M | -11.06M | -12.32M | 2.15M | 2.42M | 2.59M | 1.85M | 1.76M | 1.72M | 1.36M | 233M | 5.49M | 4.05M | 876K | 876K | 877K | 3.91M | 339K | 1M | 2M | 5M | 0 | -100K |
| Operating Income | 103.31M | 132.93M | 187.1M | 116.08M | 236.71M | 156.41M | 26.68M | -5.04M | 51.08M | 59.29M | 52.35M | 32.79M | -1.31M | 6.6M | 34.27M | 21.47M | 30.63M | -32.14M | -254.95M | 12.56M | 21.25M | 5.38M | 7.71M | 458K | -2.9M | 15.46M | 22.43M | 4.8M | -9.5M | 9.1M | 6.2M |
| Operating Margin % | 10.02% | 13.22% | 18.95% | 14.23% | 23.55% | 19.83% | 4.79% | -1.65% | 18.66% | 23.24% | 22.49% | 14.79% | -0.72% | 3.75% | 15.68% | 11.47% | 15.68% | -40.86% | -194.56% | 7.84% | 10.56% | 6.49% | 9.15% | 0.78% | -5.04% | 19.48% | 25.46% | 12.6% | -47.26% | 24.8% | 20.46% |
| Operating Income Growth % | - | -28.96% | 61.19% | -50.96% | 51.34% | 486.3% | 628.99% | -109.87% | -13.84% | 13.26% | 59.63% | 2605.19% | -119.82% | -80.73% | 59.58% | -29.89% | 195.3% | 87.39% | -2130.52% | -40.9% | 295.04% | -30.23% | 1582.97% | 115.81% | -118.73% | -31.05% | 367.27% | 150.53% | -204.4% | 46.77% | 138.46% |
| EBITDA | 157.74M | 193.37M | 249.41M | 183.29M | 301.38M | 222.21M | 94.25M | 11.37M | 57.47M | 66.21M | 60.64M | 34.94M | 1.11M | 9.2M | 36.12M | 23.23M | 32.34M | -30.78M | -243.21M | 22.76M | 29.92M | 8.03M | 9.92M | 2.63M | -1.25M | 16.83M | 23.43M | 6.8M | -4.5M | 9.3M | 6.5M |
| EBITDA Margin % | 15.31% | 19.24% | 25.26% | 22.47% | 29.98% | 28.17% | 16.94% | 3.72% | 20.99% | 25.95% | 26.05% | 15.76% | 0.61% | 5.22% | 16.53% | 12.41% | 16.56% | -39.13% | -185.6% | 14.21% | 14.87% | 9.68% | 11.77% | 4.5% | -2.18% | 21.2% | 26.59% | 17.85% | -22.39% | 25.34% | 21.45% |
| EBITDA Growth % | -38.21% | -22.47% | 36.08% | -39.18% | 35.63% | 135.75% | 729.2% | -80.22% | -13.2% | 9.18% | 73.57% | 3039.08% | -87.9% | -74.54% | 55.49% | -28.17% | 205.07% | 87.34% | -1168.77% | -23.94% | 272.7% | -19.07% | 276.86% | 310.39% | -107.43% | -28.16% | 244.54% | 251.11% | -148.39% | 43.08% | 124.14% |
| D&A (Non-Cash Add-back) | 54.44M | 60.44M | 62.31M | 67.21M | 64.66M | 65.8M | 67.58M | 16.41M | 6.38M | 6.92M | 8.29M | 2.15M | 2.42M | 2.59M | 1.85M | 1.76M | 1.72M | 1.36M | 11.74M | 10.2M | 8.67M | 2.65M | 2.21M | 2.17M | 1.65M | 1.37M | 1M | 2M | 5M | 200K | 300K |
| EBIT | 123.49M | 162.9M | 187.1M | 116.08M | 236.71M | 156.41M | 26.68M | -5.04M | 51.08M | 46.29M | 37.7M | 32.79M | -1.31M | 6.6M | 34.27M | 21.47M | 30.63M | -31.2M | -27.85M | 13.56M | 21.25M | 5.38M | 7.71M | 458K | 604K | 15.46M | 22.43M | 4.8M | -9.5M | 9.8M | 7M |
| Net Interest Income | 25.7M | 34.97M | 33.49M | 20.36M | 5.01M | 1.16M | 2.9M | 3.67M | 2.21M | 971K | -2.83M | -5.69M | -5.32M | -5.08M | -4.38M | -1.93M | 167K | 271K | 1.23M | 4.14M | 3.35M | 1.39M | 1.9M | 1.61M | 2.05M | 2.77M | 2.17M | 0 | -4.2M | 0 | 0 |
| Interest Income | 25.7M | 34.97M | 33.49M | 20.36M | 5.01M | 1.16M | 2.9M | 3.67M | 10K | 8K | 35K | 71K | 47K | 62K | 0 | 220K | 167K | 270K | 1.23M | 4.14M | 3.35M | 1.39M | 1.9M | 1.61M | 2.05M | 2.77M | 2.17M | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.21M | 971K | 2.87M | 5.76M | 5.36M | 5.14M | 4.38M | 1.34M | 0 | 271K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.2M | 400K | 300K |
| Other Income/Expense | 25.99M | 29.98M | 33.34M | 16.5M | 4.87M | -725K | 191K | 4.45M | 2.26M | 514K | -2.48M | -5.98M | -5.38M | -5.07M | -4.86M | -1.08M | -88K | -667K | -170.34M | 4.15M | 3.19M | 1.39M | 1.9M | 1.61M | 2.05M | 2.77M | 2.17M | -3.7M | -4M | 300K | 500K |
| Pretax Income | 129.3M | 162.9M | 220.45M | 132.58M | 241.58M | 155.68M | 26.87M | -597K | 53.35M | 59.8M | 49.87M | 26.81M | -6.69M | 1.53M | 29.41M | 20.39M | 30.54M | -31.87M | -253.8M | 16.7M | 24.44M | 6.77M | 9.61M | 2.07M | -846K | 18.24M | 24.6M | 1.1M | -13.5M | 9.4M | 6.7M |
| Pretax Margin % | 12.55% | 16.2% | 22.33% | 16.25% | 24.03% | 19.73% | 4.83% | -0.2% | 19.48% | 23.44% | 21.42% | 12.09% | -3.69% | 0.87% | 13.46% | 10.89% | 15.64% | -40.51% | -193.68% | 10.43% | 12.15% | 8.16% | 11.4% | 3.54% | -1.47% | 22.97% | 27.92% | 2.89% | -67.16% | 25.61% | 22.11% |
| Income Tax | 22.88M | 26.14M | 18.78M | 11.42M | 18.25M | 13.33M | -4.16M | -2.51M | 8.25M | 26.89M | 12.92M | 8.86M | -2.05M | -1.93M | -14.46M | -4.83M | 3.52M | -2.24M | -4.12M | 4.85M | 11.73M | 1.79M | 2.85M | 298K | 585K | 6.5M | -431K | -2.2M | 600K | 3.6M | 2.7M |
| Effective Tax Rate % | 17.7% | 16.05% | 8.52% | 8.62% | 7.55% | 8.56% | -15.47% | 419.93% | 15.47% | 44.97% | 25.9% | 33.03% | 30.65% | -125.57% | -49.17% | -23.69% | 11.53% | 7.03% | 1.62% | 29.01% | 48% | 26.44% | 29.72% | 14.41% | -69.15% | 35.63% | -1.75% | -200% | -4.44% | 38.3% | 40.3% |
| Net Income | 106.41M | 136.76M | 201.67M | 121.16M | 223.33M | 142.35M | 31.02M | 1.91M | 45.1M | 32.91M | 36.95M | 17.96M | -4.64M | 3.46M | 43.87M | 25.23M | 27.02M | -29.63M | -249.69M | 11.86M | 12.71M | 4.98M | 6.75M | 1.77M | -1.43M | 11.74M | 23.58M | 2.9M | -14.1M | 5.8M | 4M |
| Net Margin % | 10.33% | 13.6% | 20.43% | 14.85% | 22.22% | 18.04% | 5.58% | 0.62% | 16.47% | 12.9% | 15.87% | 8.1% | -2.56% | 1.96% | 20.08% | 13.48% | 13.83% | -37.67% | -190.54% | 7.41% | 6.32% | 6% | 8.01% | 3.03% | -2.49% | 14.79% | 26.76% | 7.61% | -70.15% | 15.8% | 13.2% |
| Net Income Growth % | -50.45% | -32.19% | 66.45% | -45.75% | 56.89% | 358.82% | 1524.35% | -95.76% | 37.03% | -10.94% | 105.79% | 486.98% | -234.18% | -92.12% | 73.89% | -6.62% | 191.18% | 88.13% | -2205.46% | -6.67% | 155.29% | -26.29% | 281.47% | 223.69% | -112.19% | -50.2% | 712.97% | 120.57% | -343.1% | 45% | -6.98% |
| Net Income (Continuing) | 106.41M | 136.76M | 201.67M | 121.16M | 223.33M | 142.35M | 31.02M | 1.91M | 45.1M | 32.91M | 36.95M | 17.96M | -4.64M | 3.46M | 43.87M | 25.23M | 27.02M | -29.63M | -249.69M | 11.86M | 12.71M | 4.98M | 6.75M | 1.77M | -1.43M | 11.74M | 25.03M | 3.3M | -14.1M | 5.8M | 4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.13 | 2.78 | 4.06 | 2.46 | 4.49 | 2.86 | 0.63 | 0.06 | 1.40 | 1.02 | 1.16 | 0.56 | -0.14 | 0.10 | 1.34 | 0.97 | 1.07 | -0.96 | -8.16 | 0.40 | 0.46 | 0.29 | 0.40 | 0.11 | -0.09 | 0.71 | 1.49 | 0.22 | -3.13 | 0.66 | 0.47 |
| EPS Growth % | -50.58% | -31.53% | 65.04% | -45.21% | 56.99% | 353.97% | 890.57% | -95.46% | 37.25% | -12.07% | 107.14% | 500% | -240% | -92.54% | 38.14% | -9.35% | 211.46% | 88.24% | -2140% | -13.04% | 58.62% | -27.5% | 263.64% | 224.58% | -112.44% | -52.35% | 577.27% | 107.03% | -574.24% | 40.43% | -9.62% |
| EPS (Basic) | - | 2.78 | 4.09 | 2.47 | 4.52 | 2.89 | 0.63 | 0.06 | 1.42 | 1.05 | 1.19 | 0.57 | -0.14 | 0.11 | 1.36 | 0.98 | 1.07 | -0.96 | -8.16 | 0.41 | 0.47 | 0.29 | 0.40 | 0.11 | -0.09 | 0.74 | 1.60 | 0.30 | -3.13 | 0.66 | 0.47 |
| Diluted Shares Outstanding | 50M | 49.27M | 49.66M | 49.32M | 49.76M | 49.73M | 49.48M | 30.01M | 32.2M | 32.16M | 31.79M | 32.17M | 33.12M | 33.39M | 32.85M | 26.02M | 25.4M | 30.89M | 30.61M | 29.31M | 27.57M | 16.94M | 16.91M | 16.72M | 16.22M | 16.53M | 15.81M | 10.43M | 4.51M | 8.8M | 8.5M |
| Basic Shares Outstanding | 49.74M | 49.12M | 49.34M | 48.97M | 49.42M | 49.24M | 49.14M | 29.73M | 31.67M | 31.49M | 31.13M | 31.41M | 33.12M | 32.78M | 32.23M | 25.61M | 25.24M | 30.89M | 30.61M | 29.17M | 27.28M | 16.9M | 16.75M | 16.41M | 16.22M | 15.9M | 14.77M | 7.88M | 4.51M | 8.8M | 8.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclicality and Geopolitical Exposure
According to the latest quarterly income statements, Onto Innovation's revenue growth has fluctuated significantly, moving from a 13.5% contraction in 2025Q3 to a 9.5% expansion by 2026Q1, reflecting the inherent sensitivity of semiconductor capital equipment demand to shifting industry-wide capacity expansion cycles and customer acceptance timing.
The erratic revenue trajectory suggests that the company remains highly susceptible to the lumpy nature of capital equipment procurement. While the recent return to positive growth indicates a potential recovery in demand, investors should monitor whether this trend is sustainable or merely a reflection of delayed project recognition.
As reported in financial statements, Onto Innovation has maintained gross margins hovering near the 50% threshold, with a 50.1% margin in 2026Q1, suggesting that the company retains a degree of pricing power despite the competitive pressures inherent in the back-end semiconductor inspection and metrology market.
The ability to sustain these margins despite fluctuating volumes implies that the company's integrated hardware-software moat provides some insulation from commoditization. However, the variance between the 53.7% peak in 2025Q1 and the 46.4% trough in 2025Q4 highlights the sensitivity of these margins to product mix and factory utilization rates.
Based on the provided income statement data, operating margins have experienced significant compression, falling from a high of 23.7% in 2025Q1 to 11.5% in 2026Q1, which indicates that the company's high fixed-cost structure leads to substantial deleveraging during periods of slower revenue growth or increased R&D investment.
The sharp decline in operating income relative to gross profit suggests that management is prioritizing long-term R&D initiatives even when top-line growth stalls. This strategy may be necessary to maintain technical parity, but it leaves the bottom line vulnerable to short-term cyclical downturns in the semiconductor industry.
Analysis of the reported figures reveals that EPS has been highly volatile, with a 48.5% year-over-year decline in 2026Q1, suggesting that the quality of earnings is heavily influenced by the timing of revenue recognition and the ongoing impact of stock-based compensation expenses on net income.
The consistent quarterly stock-based compensation expense, averaging approximately $7 million, acts as a persistent drag on net profitability. Investors should interpret the current EPS figures with caution, as they appear to be more reflective of operational timing and accounting nuances than underlying structural profitability improvements.
Quick answers to the most common questions about buying ONTO stock.
For fiscal year 2025, Onto Innovation Inc. (ONTO) reported total revenue of $1.01B. This represents a 3217.7% increase compared to $30.3M in 1996.
Onto Innovation Inc. (ONTO) is profitable, generating $136.8M in net income for the fiscal year ending 2025 with a net profit margin of 13.6%.
Onto Innovation Inc. (ONTO) reported an operating income of $132.9M, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Onto Innovation Inc. (ONTO) generated $499.8M in gross profit for the year, representing a gross profit margin of 49.7%. This demonstrates the company's core pricing power and production efficiency.