Onto Innovation Inc. (ONTO) experienced a significant 5.50% decline in post-market trading on Tuesday. The semiconductor equipment maker's stock came under pressure following the release of its first-quarter financial results.

The company reported a sharp 47.35% year-over-year drop in net income to $33.8 million for Q1 FY26, despite revenue rising 9.5% to $291.9 million. While adjusted earnings per share of $1.42 met analyst expectations, the substantial contraction in profitability and a slight revenue miss compared to estimates prompted a negative market reaction. Gross margin also narrowed by 3.6 percentage points to 50.1%, with operating income sliding to $33.5 million.

The post-market selloff reflects investor concern over the company's declining profitability metrics, even as it continues to grow revenue and secure customer qualifications for its Dragonfly G5 and Atlas G6 systems in advanced logic and memory applications.