Key Highlights

• Camtek reported Q2 2026 Revenue of $133.2 million, up 8 percent year-over-year, beating the $130.2 million estimate by 2.35 percent.

• Adjusted EPS of $0.78 beat the $0.76 estimate by 2.63 percent, with Operating Margin expanding to 27 percent from 25.5 percent in the first quarter.

• The company guided to third quarter revenue of $158 million to $160 million, representing approximately 20 percent sequential growth.

• Year-to-date order intake has exceeded $600 million, with roughly 80 percent tied to advanced packaging applications.

Record Quarter Sets Up Sharply Accelerating Second Half

Camtek Ltd. ( Nasdaq :CAMT) delivered record second quarter revenue of $133.2 million, up 8 percent year-over-year and 10 percent sequentially, with gross margin holding at 51.4 percent. Camtek designs and manufactures inspection and metrology equipment used in advanced semiconductor packaging, with roughly 75 percent of second quarter revenue tied to applications supporting artificial intelligence. Operating Income rose to $36 million from $31.1 million in the first quarter, and Net Income reached $39.4 million, or $0.78 per diluted share, up from $0.70 in the prior quarter.

Management guided to third quarter revenue of $158 million to $160 million, a roughly 20 percent sequential increase, and reiterated expectations for advanced packaging revenue to grow approximately 45 percent in the second half of 2026 compared with the first half. The company said fourth-quarter advanced packaging revenue is expected to run approximately 70 percent higher than the first quarter, a pace management attributed to order Backlog converting into shipments rather than fresh incremental Demand .

Order Backlog Points to Sustained Demand Through 2027

Camtek has received more than $600 million in orders year-to-date, with approximately 80 percent tied to advanced packaging and more than 20 percent linked specifically to HBM manufacturers navigating the industry's transition to HBM4. Roughly half of second quarter systems revenue came from the company's newer Eagle G5 and Hawk platforms, and management expects that mix to continue rising as customer adoption accelerates. Photonics, a newer market for the company, contributed about 5 percent of year-to-date orders and is expected to grow further in 2027.

Management was careful to note that most orders being booked now are for 2027 delivery rather than 2026, meaning near-term revenue visibility is strong but the eventual scale of 2027 growth remains only partially quantified. Executives declined to provide firm 2027 guidance, saying they need at least one to two more quarters before the full picture becomes clear, even as they described customer capacity expansion conversations as consistently optimistic.

Profitability Targets Depend on Continued Mix Shift

Camtek targets exiting 2026 with gross margin between 53 and 55 percent and operating margin between 30 and 32 percent, up from the current 51.4 percent and 27 percent, respectively. Management attributed the expected improvement to a richer product mix favoring the Eagle G5 and Hawk platforms, along with Operating Leverage as advanced packaging climbs toward roughly 80 percent of total revenue by year-end, from 75 percent in the second quarter.

Higher Research and Development spending, partly tied to the recent Visual Layer Acquisition , is expected to continue growing in absolute terms even as it stays below the pace of revenue growth. Management said Days Sales Outstanding rose to 105 days from increased Business Volume , and inventory levels are expected to grow further to support the forecasted acceleration in shipments, a Working Capital dynamic that could pressure near-term cash generation even as profitability improves.

Conclusion

Camtek's record quarter and aggressive guidance reflect an advanced packaging cycle that management believes is still accelerating, with more than $600 million in year-to-date bookings providing revenue visibility deep into 2027. The scale of that opportunity, however, remains only partially defined, as most new orders are being booked for delivery beyond this year and management has yet to formalize 2027 targets. Execution against a rapidly ramping shipment schedule, sustained HBM and CoWoS-related capacity expansion by customers, and continued margin improvement as newer platforms gain share will likely determine whether the current growth trajectory holds through the cycle.