ON Semiconductor Q2 2026 Financial Results:
Revenue of $1.604 billion, up 9% year-over-year; adjusted EPS of $0.74.
GAAP gross margin was 38.4%, and non-GAAP gross margin was 39.3%.
GAAP operating margin was 16.1%, and non-GAAP operating margin was 20.8%.
Cash flow from operating activities increased by 150%, and free cash flow reached $425.4 million, a fourfold increase year-over-year.
Repurchased $332 million of shares, bringing year-to-date shareholder returns to approximately 105% of free cash flow.
Business Highlights:
Announced plansto acquire Synapticsto enhance connected computing capabilities and improve gross margins, thereby supporting market expansion while reinforcing its leadership in power and sensing technologies.
As power demand from AI infrastructure continues to accelerate,NVIDIA MGXis playing an increasingly important role in the ecosystem.
Entered into a strategic agreement with Great Wall Group, China's leading cloud infrastructure power supplier, to co-develop an AI data center platform, expanding its EliteSiC, silicon MOSFET, and controller product lines.
ON Semiconductor has launchedGaNEXUS, ON Semiconductor’s portfolio of gallium nitride (GaN) power devices spanning voltage ranges from 40V to 650V, serving applications in AI data centers, robotics, and industrial infrastructure.
Rivian maintains its leadership position in automotive zonal architectures and onboard charging through its R2 platform, offering power solutions that enable highly efficient power distribution and conversion.
Hassane El-Khoury, President and Chief Executive Officer of ON Semiconductor, stated:
“Our revenue, gross margin, and earnings per share all exceeded the midpoint of our guidance, reflecting strong market demand—particularly in AI-driven applications—and growing customer recognition of our differentiated solutions, including Treo and high-voltage power offerings. AI data centers remain our fastest-growing business segment, and we now anticipate more than doubling its revenue by 2026, underscoring the strength of our intelligent power portfolio and broad customer adoption of our power solutions.”
Thad Trent, Executive Vice President and Chief Financial Officer, stated:
Our results demonstrate the operating leverage of our business model, with earnings per share growing four times faster than revenue year-over-year, primarily driven by margin expansion and stringent cost control. Free cash flow margin increased from approximately 7% a year ago to 27%, reflecting the strength of our operating model. As market demand continues to improve, we are increasingly confident in our ability to drive profitable growth and deliver long-term shareholder value.
Editor/Liam