Camtech has surpassed forecasts and expects an acceleration in growth. Why is the stock falling?

According to generally accepted accounting rules (GAAP), the operating profit decreased by 16.7% to 27.3 million dollars, and the net profit amounted to 31.6 million dollars, a decrease of 7.8% compared to the corresponding quarter. On a Non-GAAP basis, excluding various accounting items, Camtech posted a net profit of $35.3 million, down from $38.7 million in the corresponding quarter, and the net profit per share was 70 cents – 2 cents above analysts’ forecasts. The company generated $3.1 million from current operations in the quarter, and at the end of the quarter it had cash and investments in the amount of approximately $850 million.

Camtech expects revenues of 129-131 million dollars in the second quarter, higher than analysts’ forecasts of about 126 million dollars. The company states that it expects a significant increase in the second half of 2026, with revenue growth of over 25% compared to the first half of the year. This means that if the first half ends with revenues of approximately $252 million (according to the forecast given for the second quarter), in the second half the revenues will reach approximately $315 million, so that 2026 will end with a 14% growth in revenues compared to 2025 – higher than the current forecasts of the analysts.

Although Kamtec has overtaken the analysts’ forecasts, the stock is now falling sharply in Tel Aviv trading. It seems that in this case it is possible to explain the decline in the forecast that is not perceived as strong enough after such a big jump in the stock, which has climbed over 130% in the last 12 months. The investment bank Cantor estimated yesterday ahead of Kamtec’s reports that the numbers will be higher than the forecast, in light of the strength in the advanced case market, but wondered if it would be good enough. In Kantor’s estimation, Camtech would have to present an annual growth forecast of at least 25% for it to be “good enough”.

Rafi Amit, CEO of Camtech, said that “I am happy to share that we experienced an unprecedented start to the year in terms of the volume of orders received. The extraordinary demand has significantly strengthened our confidence regarding the results later in 2026, and provides us with a strong foundation already now, as we begin to look ahead to 2027.”

Amit added: “Camtec continues to invest significantly in innovation in the field of AI-based algorithms and software. With our dedicated team of AI experts and the strategic collaboration with Visual Layer, whose acquisition we recently completed, we have developed additional advanced capabilities in the areas of testing, measurement and classification. These new capabilities are already showing groundbreaking performance, and we believe they will further strengthen our competitive advantage.” Let’s recall that Kamtec announced last month the purchase of Visual Layer for an undisclosed amount.

Camtech is traded at a value approaching 9.7 billion dollars on Nasdaq and Tel Aviv, after a 200% jump in the share price in the past year.