Companies /Technology

ON Semiconductor Corp

NASDAQ: ON Semiconductors
$72.65
▼ $1.44 (−1.94%) today
Markets closed · 6:56pm ET

Q2 2026 Earnings

Reported Aug 3, 2026, 4:54pm ET · SEC source
$0.74
Beat +3.45%
EPS · est. $0.72
$1.6B
Beat +0.89%
Revenue · est. $1.6B
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%Aug 3Aug 4report 4:54pm ETearnings+1.9%−3.3%
−3%0+3%Aug 3Aug 4earnings+1.9%−3.3%
ON −3.3%S&P 500 +1.9%
−3%0+3%Aug 3Aug 4report 4:54pm ETearnings+3.2%−3.3%
−3%0+3%Aug 3Aug 4earnings+3.2%−3.3%
ON −3.3%NASDAQ +3.2%
−8%−4%0+4%Aug 3Aug 11report 4:54pm ETearnings+1.7%−2.5%
−8%−4%0+4%Aug 3Aug 11earnings+1.7%−2.5%
ON −2.5%S&P 500 +1.7%
−8%−4%0+4%Aug 3Aug 11report 4:54pm ETearnings+2.6%−2.5%
−8%−4%0+4%Aug 3Aug 11earnings+2.6%−2.5%
ON −2.5%NASDAQ +2.6%
+0.47%
Day of report
−4.79%
Next session
+0.41%
One week

Did ON Beat Earnings? Q2 2026 Results

ON Semiconductor delivered a clean beat across the board in Q2 2026, reporting non-GAAP EPS of $0.74 against a consensus estimate of $0.72, a 3.45% beat, while revenue of $1.60 billion edged past the $1.59 billion estimate and grew 9.2% year over year. The standout driver was the company's AI data center business, which management now expects to more than double in full-year 2026 revenue, fueled by expanding wins in the NVIDIA MGX ecosystem and a strategic platform deal with Great Wall for EliteSiC and silicon MOSFETs. Operating leverage was equally notable, with non-GAAP gross margin expanding to 39.3% and free cash flow quadrupling year over year to $425.40 million. Shares rose more than 5% in extended trading following the report. Looking ahead, onsemi guided Q3 2026 revenue of $1.65 billion to $1.75 billion and non-GAAP diluted EPS of $0.81 to $0.93, signaling that demand momentum, particularly in power solutions and AI infrastructure, is expected to carry into the back half of the year.

Key Takeaways
  • Strengthening demand across AI-driven applications
  • Growing customer adoption of Treo and high voltage power solutions
  • AI data center as fastest-growing business
  • Gross margin expansion and disciplined cost management
  • Operating leverage in business model with EPS growing four times faster than revenue
  • Free cash flow margin expansion from approximately 7% to 27% year-over-year

“We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions.”

ON Semiconductor CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, onsemi projects GAAP revenue of $1,650 million to $1,750 million, GAAP gross margin of 39.9% to 41.9%, non-GAAP gross margin of 40.0% to 42.0%, GAAP diluted EPS of $0.79 to $0.91, and non-GAAP diluted EPS of $0.81 to $0.93. Non-GAAP operating expenses are expected to be $303 million to $318 million. The company expects AI data center revenue to more than double in 2026 and expresses increasing confidence in driving profitable growth and long-term shareholder value as demand continues to improve.

ON YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$500.0M$1.0B$1.5B$1.5B$1.6BRevenue$551.9M$616.3MGross Profit$193.4M$258.6MOperating Income$170.3M$226.8MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

ON Revenue by Segment

Power Solutions Group$829.0M+19.0%
Analog and Mixed-Signal Group$545.7M−2.0%
Intelligent Sensing Group$228.8M+7.0%

Figures from SEC filings and company reports. Not investment advice.