Skip to content
    CAMT
    Earnings call· Jun 2026(Q2 FY26)

    CAMTEK Q2 FY26 earnings call CAMT

    Aug 10, 2026 Source

    Executive summary

    Camtek Q2 FY26 — Record Revenue and Strong AI-Driven Order Momentum

    Camtek delivered a strong second quarter, driven by unprecedented demand in Advanced Packaging, particularly for AI-related applications. The company reported record revenue and significant order intake, leading to substantially improved visibility through 2026 and into 2027. Management is confident in its ability to meet customer demand through expanded production capacity and new product introductions, positioning Camtek for sustained growth in the coming years.

    Highlights

    5

    • Record second quarter revenue of $133 million, exceeding guidance.

    • Total orders received year-to-date exceeded $600 million, with 80% for Advanced Packaging applications.

    • Advanced Packaging business expected to grow approximately 45% in H2 2026 compared to H1 2026.

    • Q3 FY26 revenue guided to $158 million to $160 million, representing an exceptional 20% sequential increase.

    • New generation platforms (Eagle G5 and Hawk) generated approximately 50% of systems revenue in Q2 FY26.

    Guidance & targets

    10
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $158M to $160M
    high materiality
    High
    H2 FY26 Growth vs H1 FY26
    more than 30% growth
    high materiality
    High
    Advanced Packaging Revenue Growth (Q4 FY26 vs Q1 FY26)
    approximately 70% higher
    high materiality
    High
    Advanced Packaging Business Growth (H2 FY26 vs H1 FY26)
    approximately 45% growth
    high materiality
    High
    Non-GAAP Gross Margin
    between 55% to 53% exiting the year
    medium materiality
    Medium
    Non-GAAP Operating Margin
    between 30% to 32% at the end of this year
    medium materiality
    Medium
    Revenue Growth into 2027
    continued growth
    high materiality
    Medium
    Advanced Packaging Revenue % of Total (Q4 FY26)
    80%
    medium materiality
    High
    HPC/AI-related Products % of Total Revenue (FY26)
    closer to 60%
    medium materiality
    Medium
    OpEx Trend
    some increase
    low materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Advanced Packaging
    Approximately 75% of total revenue, with the majority supporting AI-related applications.
    		75%———
    2D Inspection Applications
    Remaining revenue generated across diverse 2D inspection applications, including photonic.
    		25%———
    Asia
    Geographic revenue split for Q2 FY26.
    		92%———
    Rest of World
    Geographic revenue split for Q2 FY26.
    		8%———

    Operational metrics

    13
    Non-GAAP gross margin
    51.4%similar to previous quarter
    Q2 FY26

    Reported for the second quarter.

    Non-GAAP operating income
    $36Mvs $31.1M in Q1 FY26
    Q2 FY26

    Reported for the second quarter.

    Non-GAAP operating margin
    27%vs 25.5% in Q1 FY26
    Q2 FY26

    Reported for the second quarter.

    Financial income
    $7Mvs $8.1M in Q1 FY26
    Q2 FY26

    Main reason for decrease was devaluation of certain balance sheet items due to weakness of U.S. dollar versus Israeli shekel.

    Non-GAAP net income
    $39.4Mvs $35.5M in Q1 FY26
    Q2 FY26

    Reported for the second quarter.

    Non-GAAP diluted EPS
    $0.78vs $0.70 in Q1 FY26
    Q2 FY26

    Reported for the second quarter.

    Total diluted shares
    51.5M
    Q2 FY26

    As of the end of the second quarter.

    Cash and investments balance
    $815.8M
    Q2 FY26

    Cash and cash equivalents, including short- and long-term deposits and marketable securities as of June 30, 2026.

    Accounts receivables
    $153.9Mvs $131.7M in Q1 FY26
    Q2 FY26

    Increased due to increased business volume.

    DSO
    105
    Q2 FY26

    Increased in the quarter.

    Operating expenses
    $32.5Mvs $30.9M in Q1 FY26
    Q2 FY26

    Main increase in R&D due to investment in new technologies and Visual Layer acquisition.

    New generation platform revenue
    50%
    Q2 FY26

    Expected to continue increasing over coming quarters as customer adoption accelerates.

    Inventory level
    expect to growno change this quarter
    coming quarters

    To support forecasted strong growth in revenues.

    Industry KPIs

    13
    MetricValueDetails
    Lead times—
    Backlog order book$600M+USD
    Book to bill ratio—
    Ai data center revenue75% of Q2 revenue; 55% of Q2 revenue; >20% of orders%
    Services installed base100s of systemssystems
    Fab capacity utilizationwell ready to ramp
    Bookings net order intake$600MUSD
    Wfe industry spend outlooksimilar or better than WFE
    Design wins socket pipelinemultiple leading HBM manufacturers; leading foundries, IDMs and OSATs; several customerscustomers
    Inventory channel inventory105 daysdays
    Node platform ramp scheduleHBM 4; 2.5D and 3D IC packaging
    Wafer shipments foundry ASP—
    End market segment revenue mix75% Advanced Packaging; 25% 2D Inspection; 92% Asia; 8% Rest of World%

    Orderbook & backlog

    2
    Total orders received$600MYTD FY26

    Deliveries scheduled through the remainder of 2026 and into 2027.

    Backlog for 2027nice backlogQ2 FY26

    significantly improved

    Visibility has significantly improved in the last few months, with customers planning increased capacity.

    Product announcements

    2
    ProductTypeDetails
    NanoProflaunch
    New platform configurations and application-specific modulesupdate

    What to watch in Q3 FY26

    5

    Q3 FY26 Revenue

    next quarter
    Current$133.2M (Q2 FY26)
    Target$158M-$160M

    Why it matters

    Verifies the exceptional sequential growth and strong demand conversion into revenue.

    We expect third quarter revenue to be in the range of $158 million to $160 million, representing an exceptional 20% sequential increase over the second quarter.

    Q&A highlights

    6

    Clarification on the 70% AP growth in Q4 FY26 over Q1 FY26, and if AP will remain ~75% of total revenue in Q4, implying total Q4 revenue.

    Management confirmed that AP revenue in Q4 FY26 is expected to be 70% higher than Q1 FY26, and that AP's share of total revenue is expected to gradually increase to 80% by the end of the year.

    “So first of all, yes, we do see a gradual increase of our Advanced Packaging business compared to other businesses that we have. So we expect that at the end of this year, we will probably 80% of our revenues will go towards Advanced Packaging. And yes, you are correct. When the revenues, the Advanced Packaging revenues in the first quarter compared to the fourth quarter, we expect growth of 70%.”

    asked by Brian Chin · answered by Ramy Langer

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Order Intake and Enhanced Visibility

    Camtek reported year-to-date order intake exceeding $600 million, with deliveries scheduled through the remainder of 2026 and into 2027. This exceptional order level significantly improves business visibility, particularly for the second half of 2026, which is expected to be substantially stronger than the first half. The company anticipates more than 30% growth in H2 2026 versus H1 2026, with continued growth into 2027.

    02

    Advanced Packaging and AI-Driven Demand

    Approximately 75% of Q2 FY26 revenue was generated from the Advanced Packaging segment, with the majority supporting AI-related applications. The company expects Advanced Packaging revenue in Q4 FY26 to be 70% higher than Q1 FY26, and the Advanced Packaging business to grow approximately 45% in H2 2026 compared to H1 2026. Over 80% of the $600 million in new orders are for Advanced Packaging, driven by the industry transition to HBM 4 and expansion of 2.5D and 3D IC packaging capacity.

    03

    New Product Platforms Driving Adoption

    New generation platforms, the Eagle G5 and Hawk, accounted for approximately 50% of systems revenue in Q2 FY26, with their contribution expected to increase. The Hawk is targeted at high-volume, high-end applications like HBM, while the Eagle G5 offers improved performance and cost of ownership. Camtek is also launching NanoProf, a new metrology platform designed to significantly expand its capabilities and address existing and emerging process steps, increasing its footprint in the metrology area.

    04

    Operational Readiness and Capacity Expansion

    Management highlighted successful navigation of operational challenges due to high demand, attributing it to proactive expansion of production capacity and strengthening of the supply chain. The company is further expanding manufacturing capacity, system integration capabilities, sales organization, and customer support infrastructure to support substantially higher annual revenue levels and future growth.

    05

    Emerging Opportunities in Photonics and Geographic Mix

    Photonics, including silicon photonics and compound semiconductors, is emerging as a meaningful growth opportunity, accounting for 5% of the recent $600 million order intake. The company expects Photonics to become an increasingly important contributor to growth. Geographically, Asia accounted for 92% of Q2 FY26 revenue, with China remaining a stable and strong market for semiconductor investment.

    06

    Profitability Outlook and R&D Investment

    Camtek expects gradual improvement in profitability metrics, with non-GAAP gross margin targeted to reach 53-55% and non-GAAP operating margin 30-32% by year-end. This improvement is driven by leverage in the business model and an improved product mix towards higher-margin new platforms. Operating expenses are expected to increase, primarily due to continued investment in R&D and resources from the Visual Layer acquisition to strengthen AI offerings, but will not exceed revenue growth.

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