Onto Innovation Inc. (ONTO) shares surged 13.51% in after-hours trading on Thursday, following the release of its second-quarter fiscal 2026 results that significantly exceeded analyst expectations.

The company reported adjusted earnings per share of $1.93, handily beating the consensus estimate of $1.68. Revenue came in at $343.1 million, up 35.3% year-over-year and above the $325.2 million analysts had forecast. Net income jumped 77.3% to $60.1 million, while gross margin expanded 5.2 percentage points to 53.4%. The results were driven by strong performance across segments, with Advanced Nodes revenue growing 50% sequentially and Specialty Devices and Advanced Packaging revenue reaching an all-time high.

Adding to the positive sentiment, Onto Innovation provided an upbeat outlook for the third quarter, forecasting revenue between $380 million and $400 million and adjusted EPS between $2.18 and $2.38, both well above prior consensus. The company also noted that its backlog surpassed $1 billion for the first time and expressed confidence in a strong second half of 2026, with demand trends expected to extend into 2027.