Camtek (NASDAQ:CAMT) reported record second-quarter 2026 revenue of $133.2 million, exceeding its guidance and rising 8% from a year earlier and 10% sequentially, as demand for advanced packaging inspection and metrology equipment accelerated.
Chief Executive Officer Rafi Amit said about 75% of second-quarter revenue came from advanced packaging, primarily supporting artificial intelligence-related applications. The remainder came from 2D inspection applications, including silicon photonics. The company said it has received more than $600 million in orders since the start of 2026, with deliveries scheduled through the rest of the year and into 2027.
Advanced Packaging Drives Orders and Outlook
More than half of the company’s order intake came from outsourced semiconductor assembly and test providers, or OSATs, according to management. The company also reported significant orders from foundries, integrated device manufacturers and high-bandwidth-memory producers.
Chief Operating Officer Ramy Langer said more than 20% of the $600 million in orders came from HBM customers, while OSATs represented more than 50% of the total. He said both HBM and CoWoS and CoWoS-like applications are expanding rapidly as part of AI-related and high-performance-computing demand.
The company expects advanced packaging revenue to grow about 45% in the second half of 2026 compared with the first half. Management also expects fourth-quarter advanced packaging revenue to be roughly 70% higher than in the first quarter, with advanced packaging projected to account for about 80% of total revenue by year-end.
For the third quarter, Camtek forecast revenue of $158 million to $160 million, representing about 20% sequential growth from the second quarter. The company expects more than 30% growth in the second half of 2026 compared with the first half, followed by continued growth into 2027. Langer said most new orders received in the second half of the year are expected to be for 2027 delivery, though the company is still receiving a limited number of orders for 2026.
Profitability and Cash Position
On a non-GAAP basis, Camtek reported second-quarter gross profit of $68.5 million and gross margin of 51.4%, consistent with the prior quarter. Operating income was $36 million, compared with $31.1 million in the first quarter, while operating margin increased to 27% from 25.5%.
Chief Financial Officer Moshe Eisenberg said operating expenses rose to $32.5 million from $30.9 million in the prior quarter, with the main increase in research and development. He attributed part of that increase to investments in new technologies and additional resources from the Visual Layer acquisition, intended to strengthen Camtek’s AI capabilities.
Net income totaled $39.4 million, or $0.78 per diluted share, compared with $35.5 million, or $0.70 per share, in the first quarter. Financial income declined to $7 million from $8.1 million, which Eisenberg said reflected the devaluation of certain balance-sheet items as the U.S. dollar weakened against the Israeli shekel.
Camtek ended June with $815.8 million in cash, cash equivalents, short- and long-term deposits, and marketable securities. It generated $12.2 million in operating cash flow during the quarter. Accounts receivable rose to $153.9 million from $131.7 million in the first quarter, and days sales outstanding increased to 105 days. Management said inventory was unchanged during the quarter but is expected to increase in coming quarters to support anticipated revenue growth.
Eisenberg said the company expects improved product mix from the Eagle G5 and Hawk systems, as well as operating leverage from higher sales, to support profitability gains. Camtek is targeting gross margin of 53% to 55% and operating margin of 30% to 32% by the end of 2026.
New Products and Emerging Markets
Camtek said its newer Eagle G5 and Hawk platforms represented about 50% of systems revenue in the second quarter, with their contribution expected to rise over coming quarters. Langer said the Hawk system is targeted at high-volume applications, including HBM, while the Eagle G5 offers improved resolution, optics, throughput and cost of ownership compared with earlier Eagle systems.
The company is also expanding its portfolio through a high-resolution backside-inspection module, fluorescence illumination technology for detecting organic residue, and a new metrology platform called MicroProf. Langer said MicroProf has been installed at selected customers since the first quarter and is designed to expand Camtek’s metrology footprint, including in advanced packaging applications.
Photonics represented about 5% of the company’s year-to-date orders. Management identified silicon photonics and compound semiconductor applications, including components used in transceivers and receivers, as emerging opportunities. Langer said Camtek expects photonics to become a larger contributor in 2027.
Management said China business has remained stable over the past several years and expects revenue from China to account for roughly 45% of total revenue in 2026, compared with 49% in the prior year. Camtek said it has expanded production capacity and supply-chain capabilities to meet delivery requirements and is continuing to invest in manufacturing, system integration, sales and customer-support infrastructure.
About Camtek (NASDAQ:CAMT)
Camtek Ltd. (NASDAQ: CAMT) is a provider of automated inspection and metrology solutions for the semiconductor and printed circuit board (PCB) industries. The company develops, manufactures and markets a suite of inline and stand-alone systems that perform high‐resolution 2D and 3D measurements, defect review and process control. Its products are used by integrated device manufacturers, foundries, OSAT (outsourced semiconductor assembly and test) providers, and PCB fabricators to optimize yield, improve product quality and reduce production costs.
Camtek’s core offerings include wafer inspection systems that detect and classify defects on patterned wafers, patterned wafer metrology tools for overlay and critical dimension measurements, and advanced packaging inspection platforms for 3D ICs and fan-out wafer-level packaging.
