Camtek Ltd announced preliminary revenue expectations for the third quarter ended September 30, 2026, projecting figures slightly above previous guidance. The company forecasts revenue between $160 million and $161 million, representing a 27% year-over-year increase.

Full-Year and Future Outlook

In addition to the quarterly update, the semiconductor inspection systems provider introduced its full-year fiscal 2026 revenue guidance at approximately $595 million. This projection incorporates an initial fourth-quarter outlook of approximately $180 million, which implies a 40% year-over-year growth for the final quarter.

Looking ahead to fiscal 2027, management provided an initial revenue outlook exceeding $800 million. This target suggests estimated growth of more than 35% over the projected FY26 revenues.

Order Momentum Drives Visibility

The positive outlook is underpinned by strong demand signals. Since the beginning of the calendar year, the company has received orders totaling over $800 million. These orders are scheduled for delivery throughout 2026 and into 2027, providing significant visibility for future performance.

What the Numbers Show

The correlation between the >$800 million in orders received year-to-date and the >$800 million revenue outlook for fiscal 2027 highlights a direct link between current backlog strength and future top-line growth. The substantial order inflow provides the visibility necessary to guide for a 35% increase in FY27 revenue, suggesting that the company's capacity to convert orders into recognized revenue remains robust across both fiscal years.

Full financial results for the third quarter are expected to be reported in early November, following the completion of quarter-end closing procedures. The preliminary figures remain subject to these final accounting adjustments.

Camtek Ltd. reported second-quarter adjusted earnings per share of $0.78, beating the analyst consensus estimate of $0.76 by 2.63 percent. The semiconductor inspection and metrology equipment manufacturer posted quarterly revenues of $133.243 million, surpassing the $130.180 million estimate by 2.35 percent. This revenue figure represents an 8.05 percent year-over-year increase from $123.317 million in the same period last year, driven by sustained momentum in advanced packaging segments fueled by artificial intelligence infrastructure build-outs.

The earnings beat occurred despite a 1.27 percent decline in adjusted EPS compared to $0.79 per share in the prior-year quarter. GAAP net income declined 31% to $23.3 million, or $0.46 per diluted share, compared to $33.7 million, or $0.69 per diluted share, in the second quarter of 2025. This decrease was primarily attributable to one-time tax expenses and acquisition-related costs associated with the completion of the Visual Layer acquisition. Non-GAAP net income rose 2% to $39.4 million from $38.8 million in the prior-year quarter.

Financial Performance Breakdown

The company maintained robust gross margins despite higher operating expenses. GAAP gross margin held steady at 50.1%, while non-GAAP gross margin reached 51.4%. Total operating expenses increased to $39.5 million from $30.6 million in the prior-year quarter, driven by higher research and development spending of $16.7 million and selling, general, and administrative costs of $22.8 million. Operating cash flow for the quarter stood at $12.2 million, contributing to total cash, cash equivalents, short-term and long-term deposits, and marketable securities of $815.8 million as of June 30, 2026, down from $849.7 million at the end of the first quarter.

Forward-Looking Guidance

Management highlighted exceptional order intake momentum, with approximately $600 million in orders received since the beginning of 2026, scheduled for delivery in 2026 and 2027. Rafi Amit, Camtek’s CEO, noted that the AI revolution is driving unprecedented demand for data centers, positioning the company for continued growth. The company expects third-quarter revenues to range between $158 million and $160 million, representing a 20% quarter-over-quarter increase. Furthermore, management projects more than 30% growth in the second half of 2026 compared to the first half, followed by continued expansion into 2027.

What the Numbers Show

A key analytical observation is the divergence between GAAP profitability and operational performance. While GAAP net income fell significantly due to one-time items, non-GAAP metrics remained resilient, indicating stable underlying operational health. The surge in research and development expenses to $16.7 million, up from $11.5 million in the prior-year quarter, suggests aggressive investment in product development aligned with industry technology roadmaps for advanced interconnect packaging and heterogeneous integration. The ability to beat both revenue and earnings estimates despite rising operating costs underscores the pricing power and demand strength in the AI-driven semiconductor inspection sector.