Camtek Ltd. (NASDAQ:CAMT) shares climbed 3.64% in pre-market trading on Monday after the semiconductor equipment specialist reported better-than-expected second-quarter results and outlined expectations for a significant acceleration in growth during the remainder of 2026.
The company generated adjusted earnings of $0.78 per share, coming in $0.03 above the Wall Street consensus forecast of $0.75.
Revenue reached an all-time quarterly high of $133.2 million, beating analysts’ estimate of $126.26 million. Sales were also 8% higher than the $123.3 million generated during the second quarter of 2025.
Q3 guidance points to significant acceleration
Camtek expects its growth rate to increase considerably during the third quarter, forecasting revenue of between $158 million and $160 million.
The midpoint of $159 million implies a substantial sequential improvement from the record revenue delivered in Q2 and provides evidence of strengthening demand heading into the second half of the year.
Management expects the second half of 2026 to deliver growth of more than 30% compared with the first half, with positive momentum projected to continue into 2027.
The outlook is supported by a sizeable backlog of new business. Camtek has received approximately $600 million of orders since the beginning of 2026, with those systems scheduled for delivery during 2026 and 2027.
Advanced packaging demand supports order momentum
Advanced packaging is expected to play a central role in Camtek’s accelerating growth profile, with the company benefiting from its established position in this increasingly important area of semiconductor manufacturing.
“I am very pleased with the second quarter results which came ahead of our expectations,” said Rafi Amit, Camtek’s CEO. “This exceptional order intake coupled with our strong market position in the AP segment is expected to result in phenomenal growth in our AP business of 45% half over half.”
Camtek expects its advanced packaging business to expand 45% between the first and second halves of the year, highlighting the strength of demand underlying its recent order intake.
Profitability remains strong despite margin moderation
Margins softened compared with the previous year even as Camtek achieved record quarterly revenue.
Adjusted gross margin stood at 51.4%, compared with 51.9% during the second quarter of 2025.
Adjusted operating income totalled $36.0 million, representing 27.0% of revenue. That was below the 30.3% adjusted operating margin reported in the comparable period last year.
Nevertheless, Camtek maintained substantial profitability while preparing for a significant increase in deliveries during the second half.
Camtek ends quarter with more than $800 million in liquidity
The company also completed its acquisition of Visual Layer during the quarter, further expanding its technology portfolio as it prepares for its next phase of growth.
Camtek remained in a strong financial position following the transaction. Cash and equivalents, including short- and long-term deposits and marketable securities, stood at $815.8 million as of June 30, 2026.
The combination of record revenue, an earnings beat, approximately $600 million of orders and a strong second-half forecast helped drive the positive reaction in Camtek (NASDAQ:CAMT) shares.
With Q3 revenue expected to approach $160 million and management forecasting continued expansion into 2027, investors are increasingly focused on whether advanced packaging demand can sustain the company’s anticipated growth acceleration.
Camtek stock price
