Has The Arrived To Buy This Mid Cap Stock-ONTO

Acrobull Canada Advisory Inc.

July 08			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Onto Innovation Inc.	ONTO-NYSE	Technology		$4.83 Billion	Medium

Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that performs optical metrology and inspection worldwide. The company offers lithography systems and process control analytical software.

Recent Highlights

Record-High Revenue (Q1 2025): Onto Innovation posted a record $267 million in revenue for Q1 2025—marking seven consecutive quarters of growth—driven by robust demand in advanced nodes, optical metrology, and integrated inspection tools; GAAP gross margin reached 54%, non-GAAP at 55%, and operating cash flow hit a record $92 million (35% of revenue).

Double Boost in Advanced Nodes: Q1 node-related revenues doubled sequentially, with Iris® film metrology revenues jumping over 25% QoQ; shipments of multiple 3D bump metrology systems were also noted.

First Quarter 2025 Highlights

Onto Innovation reported record revenue of $267 million for the first quarter of 2025, marking the seventh consecutive quarter of revenue growth and reflecting strong demand across advanced technology nodes.

The company achieved a GAAP gross margin of 54% and a non-GAAP gross margin of 55%, demonstrating continued operational efficiency and effective cost management.

GAAP operating income for the quarter came in at $63 million, while non-GAAP operating income reached $76 million, highlighting the strength of the company’s core business performance.

Additionally, Onto Innovation posted GAAP diluted earnings per share of $1.30 and non-GAAP diluted earnings per share of $1.51, underscoring its solid profitability during the quarter.

Stock Observation- The Q2 guidance is much lower compared to Q1’s record revenue and earnings, which exceeded expectations. As a result, ONTO shares fell about 31% on May 9, 2025, due to the weaker-than-expected revenue and EPS forecasts. The RSI level for the stock is at 42 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$98.70 USD
Acrobull Recommendation	Buy
Target Price	$110.00 USD
RSI Level	14 Day RSI 43
Total Shares Outstanding	48.94 Million
Shares held by Insiders Shares held by Institutions Risk Factor Stop Loss	0.72% 98.24% Medium 5%