ON Semiconductor Corporation

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Bullish +65

ON Semiconductor (ON) Earnings Trends: EPS & Revenue History | 24/7 ...

📈 ON Semiconductor beat Q1 2026 revenue estimates with $1.51 billion reported, a 4.7% year-over-year increase.

💰 Non-GAAP diluted EPS of $0.64 surpassed the $0.62 consensus estimate by 4.03%.

🚀 AI data center revenue more than doubled year-over-year as the company expanded its presence with leading hyperscalers.

⚡ Power Solutions Group anchored results with $736.60 million in revenue, up 14% from the previous year.

📉 GAAP gross margins were pressured by $329.30 million in restructuring and impairment charges during Q1.

🔍 Non-GAAP gross margins recovered significantly to 38.5%, a sharp improvement from 20.3% reported a year ago.

📅 Q2 2026 revenue guidance is set between $1.54 billion and $1.64 billion, consistent with non-GAAP figures.

💵 Management expects non-GAAP EPS for Q2 to range from $0.65 to $0.77.

🗣️ CEO Hassane El-Khoury stated the company has moved beyond the cyclical trough on a path to recovery.

📊 Sequential growth in the AI data center business exceeded 30% during the quarter.

Bullish Signals
  • Q1 revenue of $1.51 billion beat the consensus estimate of $1.49 billion by 1.72%, indicating strong market demand.
  • Non-GAAP diluted EPS of $0.64 topped the $0.62 estimate, demonstrating solid profitability execution.
  • AI data center revenue more than doubled year-over-year, signaling a major growth engine for the company.
  • Sequential growth in the AI data center segment exceeded 30%, highlighting accelerating momentum.
  • Power Solutions Group revenue increased by 14% year-over-year to $736.60 million, anchoring overall results.
  • Non-GAAP gross margins recovered sharply to 38.5% from a low of 20.3% the previous year.
  • Management guidance for Q2 revenue ($1.54B-$1.64B) aligns with non-GAAP figures, showing consistency in forecasting.
  • CEO confirmed the company has moved beyond the cyclical trough, suggesting a sustainable recovery trajectory.
Risk Factors
  • GAAP results were pressured by $329.30 million in restructuring and impairment charges during Q1.
  • Non-GAAP gross margins of 38.5% remain below pre-restructuring levels due to the one-time charges impacting GAAP.
Full Analysis
ON Semiconductor reported a strong first quarter for 2026, delivering revenue of $1.51 billion, which represents a 4.7% year-over-year increase and beats the consensus estimate of $1.49 billion by 1.72%. The company also exceeded analyst expectations for non-GAAP diluted earnings per share (EPS), reporting $0.64 compared to the estimated $0.62. This performance was primarily driven by significant growth in its AI data center business, where revenue more than doubled year-over-year as the firm expanded its footprint among major chip vendors and hyperscalers. The Power Solutions Group served as a key anchor for these results, generating $736.60 million in revenue, a 14% increase from the prior year. While non-GAAP gross margins recovered sharply to 38.5% from a low of 20.3% last year due to restructuring costs, GAAP results were impacted by $329.30 million in one-time charges. Despite these headwinds, management expressed confidence that the company has moved past the cyclical trough and is on a clear path to recovery. Looking ahead to the second quarter of 2026, ON Semiconductor provided guidance for revenue between $1.54 billion and $1.64 billion, with non-GAAP EPS expected to range from $0.65 to $0.77. The company projects GAAP gross margins in the 37.9% to 39.9% range and anticipates operating expenses between $302 million and $317 million. CEO Hassane El-Khoury highlighted that sequential growth in the AI data center segment exceeded 30%, reinforcing the momentum seen in the first quarter.