SCOTTSDALE, Ariz., May 04, 2026 (GLOBE NEWSWIRE) -- onsemi (the "Company") (NASDAQ:ON) today announced its first quarter 2026 results with the following highlights:
Revenue of $1,513 million, exceeding the midpoint of our guidance
GAAP and non-GAAP gross margin of 38.5%
GAAP operating margin of (3.5)% and non-GAAP operating margin 19.1%
GAAP diluted loss per share of ($0.08) and non-GAAP diluted earnings per share $0.64
Share repurchases of $346 million, representing approximately 160% of free cash flow
"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." said Hassane El‑Khoury, President and CEO of onsemi. "Looking ahead, we are encouraged by the underlying health of the business and the long‑term opportunities driven by increasing semiconductor content in automotive, industrial and AI data center applications."
"With our operational improvements, we delivered strong operating leverage in our business with a 10% year-over-year increase in operating income, outpacing revenue growth by 2x. The strength of our portfolio and optimized cost structure position us to accelerate margins and earnings as market conditions continue to improve," said Thad Trent, EVP and CFO of onsemi. "We continue to generate strong free cash flow and return capital to shareholders. With our disciplined approach, we remain focused on sustaining long-term value creation for shareholders."
Business Highlights:
AI data center revenue more than doubled year-over-year due to broader adoption across the power tree with multiple chip vendors and leading hyperscalers.
Leading in the transition to 900V EV architectures with onsemi EliteSiC, enabling extended range and flash charging, including expanded collaborations with Geely and NIO.
Increasing software-defined vehicle momentum with initial production shipments of Treo-based 10BASE-T1S Ethernet solutions, supporting the next-generation zonal architecture at a leading North American OEM.
Announced new design win with Sineng Electric to power its 430kW liquid-cooled energy storage systems and 320 kW solar inverter.
Selected financial results for the quarter are shown below with comparable periods (unaudited):
GAAP
Non-GAAP
(Revenue and Net Income in millions)
Q1 2026
Q4 2025
Q1 2025
Q1 2026
Q4 2025
Q1 2025
Revenue
$
1,513.3
$
1,530.1
$
1,445.7
$
1,513.3
$
1,530.1
$
1,445.7
Gross Margin
38.5
%
36.0
%
20.3
%
38.5
%
38.2
%
40.0
%
Operating Margin
(3.5
)%
13.1
%
(39.7
)%
19.1
%
19.8
%
18.3
%
Net Income (loss) attributable to ON Semiconductor Corporation
$
(33.4
)
$
181.8
$
(486.1
)
$
253.1
$
257.2
$
231.6
Diluted Earnings (loss) Per Share
$
(0.08
)
$
0.45
$
(1.15
)
$
0.64
$
0.64
$
0.55
Revenue Summary(in millions) (Unaudited)
Quarters Ended
Business Segment
Q1 2026
Q4 2025
Q1 2025
Sequential Change
Year-over-Year Change
PSG
$
736.6
$
724.2
$
645.1
2
%
14
%
AMG
540.4
556.3
566.4
(3
)%
(5
)%
ISG
236.3
249.6
234.2
(5
)%
1
%
Total
$
1,513.3
$
1,530.1
$
1,445.7
(1
)%
5
%
SECOND QUARTER 2026 OUTLOOK
The following table outlines onsemi's projected second quarter of 2026 GAAP and non-GAAP outlook.
Total onsemiGAAP
SpecialItems **
Total onsemiNon-GAAP***
Revenue
$1,535 to $1,635 million
-
$1,535 to $1,635 million
Gross Margin
37.9% to 39.9%
0.1%
38.0% to 40.0%
Operating Expenses
$302 to $317 million
$15 million
$287 to $302 million
Other Income and Expense (including interest), net
($6 million)
-
($6 million)
Diluted Earnings Per Share
$0.60 to $0.72
$0.05
$0.65 to $0.77
Diluted Shares Outstanding *
401 million
7 million
394 million
*
Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, and the 0.50% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, and the 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher.
**
Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.
***
We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.
TELECONFERENCE
onsemi will host a conference call for the financial community at 5 p.m. Eastern Time (ET) on May 4, 2026 to discuss this announcement and onsemi's first quarter 2026 results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.
About onsemi
onsemi (NASDAQ:ON) delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. With a highly differentiated and innovative product portfolio, onsemi helps customers solve complex challenges to achieve higher efficiency, improved performance, and lower system cost, while supporting a safer, cleaner, and more energy-efficient world. onsemi is included in the S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
Krystal Heaton
Parag Agarwal
Director, Head of Public Relations
Vice President - Investor Relations & Corporate Development
onsemi
onsemi
(480) 242-6943
(602) 244-3437
[email protected]
[email protected]
This document includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the second quarter of 2026. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," "anticipates," "should" or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A "Risk Factors" in the 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 9, 2026 (the "2025 Form 10-K") and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
ON SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share and percentage data)
Quarters Ended
April 3, 2026
December 31, 2025
April 4, 2025
Revenue
$
1,513.3
$
1,530.1
$
1,445.7
Cost of revenue
930.2
979.1
1,151.9
Gross profit
583.1
551.0
293.8
Gross margin
38.5
%
36.0
%
20.3
%
Operating expenses:
Research and development
144.3
133.8
164.1
Selling and marketing
63.0
61.5
68.3
General and administrative
89.4
86.0
84.4
Amortization of intangible assets
10.5
10.8
11.4
Restructuring, asset impairments and other, net
329.3
58.8
539.3
Total operating expenses
636.5
350.9
867.5
Operating income (loss)
(53.4
)
200.1
(573.7
)
Other income (expense), net:
Interest expense
(12.7
)
(17.3
)
(18.0
)
Interest income
17.7
20.6
26.6
Other income
3.8
13.7
4.1
Other income (expense), net
8.8
17.0
12.7
Income (loss) before income taxes
(44.6
)
217.1
(561.0
)
Income tax (provision) benefit
11.7
(35.3
)
75.8
Net income (loss)
(32.9
)
181.8
(485.2
)
Less: Net income attributable to non-controlling interest
(0.5
)
—
(0.9
)
Net income (loss) attributable to ON Semiconductor Corporation
$
(33.4
)
$
181.8
$
(486.1
)
Net income (loss) per share of common stock attributable to ON Semiconductor Corporation:
Basic
$
(0.08
)
$
0.45
$
(1.15
)
Diluted
$
(0.08
)
$
0.45
$
(1.15
)
Weighted average common shares outstanding:
Basic
394.1
400.8
421.3
Diluted
394.1
402.3
421.3
ON SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions)
April 3, 2026
December 31, 2025
April 4, 2025
Assets
Cash and cash equivalents
$
2,003.6
$
2,147.6
$
2,762.5
Short-term investments
400.0
400.0
250.0
Receivables, net
862.8
908.0
825.0
Inventories
2,049.2
1,989.6
2,078.2
Assets held-for-sale
40.4
25.0
45.7
Other current assets
419.6
352.9
365.1
Total current assets
5,775.6
5,823.1
6,326.5
Property, plant and equipment, net
3,035.6
3,369.0
3,840.5
Goodwill
1,679.9
1,679.9
1,641.6
Intangible assets, net
332.2
343.9
309.2
Deferred tax assets
933.2
929.1
745.5
ROU financing lease assets
—
23.1
39.9
Other assets
254.3
356.0
350.7
Total assets
$
