Key Highlights

• Camtek posted record Q3 2026 Revenue of $161.3 million, a 28% year-over-year and 21% quarter-over-quarter increase.

• Non-GAAP Operating Income reached $47.5 million, representing a 29.5% Operating Margin for the quarter.

• The company expects Q4 2026 revenue of approximately $180 million, bringing full-year 2026 revenue to approximately $595 million.

• Initial 2027 revenue outlook exceeds $800 million, representing approximately 35% growth over the projected 2026 figure.

Camtek Ltd.(NASDAQ:CAMT), an Israel-based developer and manufacturer of high-end semiconductor inspection and metrology equipment, reported record financial results for the third quarter ended September 30, 2026. Revenue for the quarter reached $161.3 million, up 28% from $126.0 million in the same period a year earlier and 21% higher than the preceding quarter.

Revenue and Profitability Metrics

Third quarter revenue of $161.3 million marked a new high for the company, driven by continued Demand in the advanced packaging segment of the semiconductor industry, particularly applications related to artificial intelligence. GAAP Gross Profit totaled $80.6 million, or 50.0% of revenue, matching the gross margin rate from Q3 2025 despite the higher revenue base. On a non-GAAP basis, gross profit reached $82.3 million, representing a 51.1% margin.

Operating income on a GAAP basis was $39.8 million, or 24.7% of revenue, compared to $31.8 million in Q3 2025. Non-GAAP operating income came in at $47.5 million, reflecting a 29.5% operating margin versus 29.9% in the year-ago quarter. GAAP Net Income was $42.8 million, or $0.84 per diluted share, a significant Reversal from the GAAP net loss of $53.2 million recorded in Q3 2025. Non-GAAP net income reached $50.3 million, or $0.99 per diluted share, up 23% from $40.9 million in the prior-year period.

Cash and Liquidity Position

The company's cash, cash equivalents, short-term deposits, and marketable securities stood at $877.1 million as of September 30, 2026, up from $815.8 million at the end of the prior quarter. Camtek generated Operating Cash Flow of $71.1 million during the third quarter, reflecting the improved profitability and revenue scale.

Forward Guidance and 2027 Outlook

Camtek reiterated its guidance for Q4 2026 revenue of approximately $180 million, which would represent approximately 40% year-over-year growth and bring full-year 2026 revenue to approximately $595 million. Management also confirmed its initial 2027 revenue outlook of more than $800 million, representing projected growth of approximately 35% over 2026, supported by what the company described as its order Backlog and sales pipeline.

These targets were initially presented at the company's investor and analyst event held in October 2026. CEO Rafi Amit noted that Business momentum had continued across all key indicators since that event. He highlighted that Camtek operates in what he described as some of the fastest-growing segments of the semiconductor industry, including high-end advanced packaging driven by expanding AI-related demand. Amit also stated that for the first time in the company's history, it has visibility a year ahead into its growth trajectory.

The Takeaway

Camtek's Q3 2026 results reflect the company's positioning within the semiconductor equipment sector at a time when demand for advanced packaging and AI-related chip inspection continues to grow. The combination of record quarterly revenue, consistent margins above 50% at the gross level, and an initial 2027 outlook of more than $800 million signals a period of accelerating business activity. Cash generation of over $71 million in the quarter further reinforced the company's financial position as it scales to meet the anticipated demand increase heading into 2027.