Skip to content
    CAMT
    Earnings call· Mar 2026(Q1 FY26)

    CAMTEK Q1 FY26 earnings call CAMT

    May 12, 2026 Source

    Executive summary

    Camtek Q1 FY26 — Strong Order Intake and AI-Driven Growth Outlook

    Camtek reported Q1 FY26 results slightly above guidance, driven by strong demand for AI-related and advanced packaging products. The company experienced unprecedented order intake, particularly from HBM manufacturers, reinforcing a confident outlook for significant revenue growth in the second half of 2026 and into 2027. Strategic investments in AI technology, including the acquisition of Visual Layer, are expected to expand market share and total addressable market, positioning Camtek for sustained growth.

    Highlights

    5

    • Q1 revenue reached $121.7 million, slightly ahead of guidance.

    • Unprecedented order intake, including over $260 million in expected revenue from 2 HBM manufacturers for 2026 and 2027.

    • AI-related products drove approximately 50% of Q1 revenue, with an additional 20% from other advanced packaging.

    • Revenue from new Eagle G5 and Hawk platforms is expected to double in 2026, after accounting for 30% of revenue last year.

    • Acquisition of Visual Layer closed, integrating AI technology and expanding total addressable market to over $2 billion in 2027.

    Concerns

    3

    • Operating expenses increased to $30.9 million in Q1 FY26, up from $24.4 million in Q1 FY25 and $28.7 million in Q4 FY25.

    • Operating margin decreased to 25.5% in Q1 FY26, down from 31.5% in Q1 FY25 and 28.6% in Q4 FY25.

    • Accounts receivables increased to $131.7 million from $90.8 million QoQ, resulting in lower cash generation this quarter.

    Guidance & targets

    5
    CategoryTargetConfidence
    Revenue
    $129 million to $131 million
    high materiality
    High
    Revenue
    over 25% higher revenues compared with the first half
    high materiality
    High
    Operating margin
    around 30% level
    medium materiality
    Medium
    Gross margin
    improve
    medium materiality
    Medium
    Total Addressable Market (TAM)
    over $2 billion
    high materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Revenue Mix by Application
    Revenue mix for Q1 FY26, with AI-related products being the largest contributor.
    AI-related products: 50% of revenueOther advanced packaging applications: 20% of revenueBroad range of applications: 30% of revenue
    		$121.7M———

    Operational metrics

    12
    Non-GAAP gross margin
    51%similar to previous quarter
    Q1 FY26

    Gross margin for the quarter.

    Non-GAAP operating income
    $31.1 milliondown from $37.3 million in Q1 FY25 and $36.7 million in Q4 FY25
    Q1 FY26

    Operating profit for the quarter.

    Non-GAAP operating expenses
    $30.9 millionup from $24.4 million in Q1 FY25 and $28.7 million in Q4 FY25
    Q1 FY26

    Operating expenses for the quarter, with drivers for the increase.

    Non-GAAP operating margin
    25.5%down from 31.5% in Q1 FY25 and 28.6% in Q4 FY25
    Q1 FY26

    Operating margin for the quarter.

    Financial income
    $8.1 millionup from $5.4 million in Q1 FY25, similar to $8.2 million in Q4 FY25
    Q1 FY26

    Financial income for the quarter.

    Net income
    $35.3 milliondown from $38.7 million in Q1 FY25
    Q1 FY26

    Net income for the quarter.

    Non-GAAP EPS
    $0.70down from $0.79 in Q1 FY25
    Q1 FY26

    Diluted earnings per share for the quarter.

    Cash and investments balance
    $850 millionsimilar level as of year-end
    as of March 31, 2026

    Cash and cash equivalents, including short- and long-term deposits and marketable securities.

    Inventory
    $116.7 million
    Q1 FY26

    Inventory level optimized, expected to increase.

    Accounts receivables
    $131.7 millionup from $90.8 million in Q4 FY25
    Q1 FY26

    Increase due to timing of collections.

    Revenue from Eagle G5 and Hawk platforms
    30%
    FY25

    Contribution of new product platforms to revenue and expected growth.

    Technology Capabilities
    —
    current

    Advanced capabilities of Camtek's inspection and metrology systems.

    Industry KPIs

    7
    MetricValueDetails
    Lead timesEagle: 3 months; Hawk: 3 to 6 monthsmonths
    Backlog order book—
    Ai data center revenue50%% of revenue
    Bookings net order intakeexceeding $260 millionUSD
    Design wins socket pipeline2 HBM manufacturerscustomers
    Inventory channel inventory$116.7 millionUSD
    End market segment revenue mix50% AI-related products, 20% other advanced packaging, 30% broad range of applications% of revenue

    Orderbook & backlog

    1
    HBM orders and forecastexceeding $260 millionQ1 FY26

    unprecedented start to the year in terms of incoming orders

    expected revenue for 2026 and 2027 from 2 HBM manufacturers for 3D metrology and 2D inspection steps

    Product announcements

    2
    ProductTypeDetails
    AI features integration into systemsupdate
    Dedicated AI-based software product lineroadmap

    Deals & partnerships

    1
    Visual LayerAcquisition of an AI technology company to integrate its technology, AI research capabilities, and engineering team into Camtek's AI initiatives.

    Camtek collaborated with Visual Layer on an AI-focused project for over a year before acquiring the company. The acquisition was closed a couple of weeks prior to the call.

    Risks & headwinds

    5
    Increased Operating ExpensesQ1 FY26

    Operating expenses increased to $30.9 million in Q1 FY26 from $24.4 million in Q1 FY25 and $28.7 million in Q4 FY25.

    Mitigation: Increase is mainly to support expected strong growth in business volume and is expected to normalize with operating margin returning to 30% in H2 FY26.

    Lower Cash GenerationQ1 FY26

    Accounts receivables went up to $131.7 million compared with $90.8 million in the previous quarter, resulting in lower cash generation this quarter.

    Mitigation: Attributed to timing of collections, implying a temporary issue rather than a structural problem.

    Competitive Pressure in Chinaforeseeable future

    Local and international players are trying to compete, with main pressure from local players.

    Mitigation: Camtek has a very strong position due to its large installed base, success in the OSAT market, flexibility, and strong customer support organization. Expects positive trend to continue.

    Component Pricing Increases / Supply Chain Pressurecurrent

    DRAM prices going up and general component pricing increases.

    Mitigation: Company continues to implement cost reduction in its machines, expecting gross margin to improve in H2 FY26.

    Middle East Geopolitical Situationongoing

    Difficult situation in the Middle East.

    Mitigation: Camtek's facility in Israel is working as usual, with no missed shipments and 100% performance in manufacturing and R&D. The team is committed and able to execute. Adding capacity in Germany is ongoing.

    What to watch in Q2 FY26

    5

    H2 FY26 Revenue Surge

    H2 FY26
    CurrentQ1 FY26 revenue of $121.7 million
    Targetover 25% higher revenues compared with H1 FY26

    Why it matters

    This surge is a key indicator of the company's ability to capitalize on unprecedented🌐 order intake and strong demand in AI and advanced packaging.

    we can already say that we expect a surge in revenue in the second half of 2026 with over 25% higher revenues compared with the first half with a potential to see additional upside based on timing of📎 orders and deliveries between Q4 2026 and early 2027.

    Q&A highlights

    5

    Why acquire Visual Layer now, what unique capabilities does it bring, and what are the plans for AI-based software products, including stand-alone offerings and revenue generation?

    Visual Layer brings unique annotation and classification technology, complementing Camtek's in-house AI algorithm development. The acquisition provides full ownership of their technology and team, enhancing capabilities. AI features will be integrated into existing products in the coming months, contributing revenue in H2 FY26. Future plans include selling software packages to existing Camtek installed base and developing dedicated AI-based software for the broader semiconductor industry.

    “We are going to introduce -- in the very next few months, we are going to introduce to our customers our AI capabilities in inspection and metrology. And as Rafi mentioned earlier, the capabilities of this technology is breakthrough...”

    asked by Yu Shi · answered by Ramy Langer

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 Financial Highlights and Outlook

    Camtek reported Q1 FY26 revenue of $121.7 million, slightly exceeding guidance. Non-GAAP gross margin was 51%, and operating income totaled $31 million. The company anticipates a significant surge in revenue in the second half of 2026, with expectations of over 25% higher revenues compared to the first half, and continued growth into 2027. Operating margin is projected to return to around 30% in H2 FY26, with gross margin also expected to improve.

    02

    Unprecedented Order Intake and HBM Opportunity

    The company experienced an unprecedented🌐 start to the year with incoming orders, significantly strengthening its outlook for 2026 and 2027. Specifically, Camtek received orders and forecasts from two HBM manufacturers for 3D metrology and 2D inspection steps, representing expected revenue exceeding $260 million for 2026 and 2027. This demand is further reinforced by incremental business from these customers and other HPC players.

    03

    Visual Layer Acquisition and AI Strategy

    Camtek successfully closed the acquisition of Visual Layer, integrating its technology, AI research capabilities, and engineering team. This acquisition, following a year-long collaboration, is central to Camtek's AI initiatives, enabling the development of cutting-edge capabilities in detection, metrology, and classification. The company plans to introduce these AI features into its systems in the coming months⏳, with expected revenue contribution in the second half of the year, and potentially offer dedicated AI-based software as a stand-alone product line in the future.

    04

    Product Innovation and Market Expansion

    New systems, Eagle G5 and Hawk, introduced last year, accounted for 30% of revenue and are expected to double their revenue contribution in 2026. These products support evolving industry roadmaps, including sub-6 micro bump height metrology and 100-nanometer inspection. The company's continued investment in platform innovation and AI-based algorithms is expected to expand its 2D market share and win additional process steps, increasing its total addressable market to over $2 billion by 2027.

    05

    China Market and Competitive Landscape

    The China business continues to show a positive trend and remains healthy, though major growth contributions are expected from non-China markets. Camtek acknowledges international and local competition in China but maintains a strong position due to its large installed base and dominance in the OSAT market. The company expects to see a positive trend in China in the foreseeable future, leveraging its flexibility and strong customer support.

    06

    Operational Resilience and Competitive Differentiation

    Despite the situation in the Middle East, Camtek's facility in Israel is operating as usual, with no missed shipments and 100% performance in manufacturing and R&D. The company's competitive advantage stems from its state-of-the-art mechanical capabilities, precise platforms, optical hardware, and breakthrough AI capabilities. Additionally, flexibility in customization, quick deliveries, and a strong customer support organization contribute to its leadership, particularly with OSAT customers.

    AI-generated summary of the company’s earnings call. Not investment advice.