This article first appeared on GuruFocus .
Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record Q2 2026 revenue of $133 million, exceeding guidance, with 75% from advanced packaging driven by AI applications.
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Exceptional order intake of over $600 million year-to-date, with 80% from advanced packaging, providing strong visibility into 2027.
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Expectation of 45% growth in advanced packaging revenue in H2 2026 vs H1, with Q4 advanced packaging revenue projected to be 70% higher than Q1.
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New product platforms (Eagle G5, ORC, Hawk) are gaining traction, contributing 50% of systems revenue in Q2, with continued adoption expected.
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Emerging growth opportunities in photonics (silicon photonics, compound semiconductors) with multi-system orders already received, positioning for future growth.
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Strong financial performance with operating margin improving to 27% in Q2, and expectations of gradual profitability improvements due to product mix and operational leverage.
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Successful management of operational challenges from high demand, with expanded production capacity and supply chain to meet customer delivery schedules.
Negative Points
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High customer concentration in Asia (92% of revenue), posing geographic concentration risk.
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Accounts receivable increased to $153.9 million with DSO rising to 105 days, indicating potential cash flow pressure from increased business volume.
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Financial income decreased to $7 million due to US dollar weakness against the Israeli shekel, impacting balance sheet items.
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Operating expenses increased to $32.5 million, primarily due to higher R&D investments, which could pressure margins if revenue growth slows.
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Inventory levels are expected to grow in coming quarters to support forecasted growth, potentially tying up capital and increasing holding costs.
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Dependence on the AI and advanced packaging market, which, while growing, is subject to cyclicality and potential demand fluctuations.
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The company faces operational challenges from unprecedented demand, which could strain resources and execution capabilities if not managed effectively.
Q & A Highlights
Q: Can you provide more details on the record order intake of over $600 million year-to-date and the visibility it provides for the second half of 2026 and into 2027? A: Rafi Amit (CEO) confirmed that the exceptional order momentum has significantly improved business visibility. Approximately 80% of these orders are for advanced packaging applications, driven by the industry transition to HBM4 and continued capacity expansion. The company expects advanced packaging revenue in Q4 to be roughly 70% higher than Q1, and overall H2 2026 revenue to grow over 30% versus H1, with continued growth into 2027.
Q: What is driving the significant demand from OSATs, and how does this impact your revenue mix? A: Rafi Amit (CEO) highlighted that OSATs accounted for more than 50% of the total order intake. This is driven by the ongoing expansion of 2.5D and 3D IC packaging capacity, which has resulted in large multi-system orders from leading foundries, IDMs, and OSATs. This diversification strengthens Camtek's position in the advanced packaging market.
Q: Can you elaborate on the growth potential in the photonics market and the specific opportunities you are seeing? A: Rafi Amit (CEO) identified photonics, including silicon photonics and compound semiconductors, as an emerging and meaningful growth opportunity. The company has already received multi-system orders from several customers in this market and expects photonics to become an incredibly important contributor to growth in the coming years, expanding their total addressable market.
Q: What is the expected contribution from the new generation platforms, the Eagle G5 and the ORC, in the coming quarters? A: Rafi Amit (CEO) stated that approximately 50% of systems revenue in Q2 was generated by these new platforms. The contribution is expected to continue increasing as customer adoption accelerates. The improved product mix towards the Eagle Gen 5 and the Hawk is also expected to drive a gradual improvement in profitability metrics.
Q: How is Camtek managing the operational challenges associated with this unprecedented level of demand? A: Rafi Amit (CEO) explained that the company prepared in advance by expanding production capacity and strengthening its supply chain. They are also preparing for the next stage of growth by further expanding manufacturing capacity, system integration capabilities, sales organization, and customer support infrastructure to support substantially higher annual revenue levels.
Q: Can you provide more color on the new product launches, specifically the Nanoprof platform and the new inspection modules? A: Rafi Amit (CEO) detailed that they are launching a new metrology platform called Nanoprof, which will significantly expand their metrology capabilities. They are also introducing a high-resolution backside inspection module and fluorescence illumination technology for detecting organic residue. These new products will enable them to address additional applications and markets where they have not previously competed.
Q: What is the outlook for gross margins and operating leverage in the second half of 2026? A: Moshe Eisenberg (CFO) stated that the gross margin for Q2 was 51.4%, similar to the previous quarter. However, with the strong second-half forecast, the leverage in the model, and the improved product mix, they expect a gradual improvement across all profitability metrics in the next few quarters.
Q: Can you explain the increase in operating expenses and the impact of the Visual Layer acquisition? A: Moshe Eisenberg (CFO) noted that operating expenses increased to $32.5 million, primarily due to increased R&D investment. This investment is focused on new technologies and additional resources from the Visual Layer acquisition to strengthen their AI offering, which is a key competitive differentiator.
Q: What is the expected revenue growth trajectory for Q3 and Q4 of 2026? A: Moshe Eisenberg (CFO) guided Q3 revenue to be in the range of $158 million to $160 million, representing a 20% sequential increase. He also expects sequential double-digit growth in Q4, which aligns with the company's expectation of over 30% growth in H2 2026 versus H1.
Q: How is the company's cash position and balance sheet supporting this growth? A: Moshe Eisenberg (CFO) reported cash and cash equivalents, including deposits and marketable securities, of $815.8 million as of June 30, 2026. While cash from operations was $12.2 million in the quarter, the company expects inventory levels to grow in the coming quarters to support the forecasted strong revenue growth, reflecting a strategic investment to meet customer demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
