ON Semiconductor Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did ON Beat Earnings? Q1 2026 Results
ON Semiconductor delivered a clean beat to open 2026, posting Q1 revenue of $1.51 billion, up 4.7% year-over-year and ahead of the $1.49 billion consensus by 1.72%, while non-GAAP diluted EPS of $0.64 topped the $0.62 estimate by 4.03%. The standout driver was the company's AI data center business, where revenue more than doubled year-over-year as onsemi broadened its presence across the power tree with multiple chip vendors and leading hyperscalers, with sequential growth exceeding 30%. The Power Solutions Group anchored segment results with $736.60 million in revenue, up 14% year-over-year. Non-GAAP gross margins held at 38.5%, a sharp recovery from the restructuring-heavy 20.3% reported a year ago, though GAAP results remained pressured by $329.30 million in restructuring and impairment charges. For investors <a href="https://247wallst.com/investing/2026/05/04/live-onsemi-q1-earnings-tonight-can-the-stock-continue-its-90-ytd-rally/">watching the stock's momentum</a>, the Q2 outlook offers further encouragement, with revenue guided at $1.54 billion to $1.64 billion and non-GAAP EPS of $0.65 to $0.77.
- AI data center revenue more than doubled year-over-year driven by broader adoption across the power tree with multiple chip vendors and leading hyperscalers
- AI data center revenue grew more than 30% sequentially
- Demand strengthened through the quarter, moving beyond the cyclical trough
- Year-over-year operating income growth outpaced revenue growth by 2x
- Power Solutions Group revenue grew 14% year-over-year
“We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery. Our AI data center business accelerated, growing more than 30% sequentially.”
ON Semiconductor CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, onsemi projects GAAP revenue of $1,535 million to $1,635 million (same for non-GAAP). GAAP gross margin is expected at 37.9% to 39.9%, with non-GAAP gross margin of 38.0% to 40.0%. GAAP operating expenses of $302 million to $317 million; non-GAAP operating expenses of $287 million to $302 million. GAAP diluted EPS of $0.60 to $0.72; non-GAAP diluted EPS of $0.65 to $0.77. GAAP diluted shares outstanding approximately 401 million; non-GAAP diluted shares outstanding approximately 394 million.
ON YoY Financials
ON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.