ON Semiconductor Q1 2026 Revenue Hits $1.513B, Driven by AI and Automotive; Issues Q2 Guidance

ON Semiconductor announced its first-quarter financial results for 2026 on May 6, reporting revenue of $1.513 billion, above the midpoint of its prior guidance range. Both GAAP and non-GAAP gross margins stood at 38.5%. GAAP operating margin was 3.5%, while non-GAAP operating margin reached 19.1%. GAAP diluted earnings per share (EPS) were $0.08, compared to non-GAAP diluted EPS of $0.64. The company repurchased $346 million worth of shares during the quarter, representing approximately 160% of its free cash flow. AI data center business emerged as the primary growth driver, with revenue doubling year-over-year and increasing by over 30% sequentially. In the automotive segment, ON Semiconductor’s EliteSiC products are enabling electric vehicles to transition to 900V high-voltage architectures, and the company has strengthened collaborations with automakers such as Geely and NIO. In the software-defined vehicle domain, its Treo-based 10BASE-T1S Ethernet solution has entered mass production and is being delivered to a leading North American automaker. In the industrial and renewable energy sectors, ON Semiconductor has partnered with Sungrow Power Supply to support its 430kW liquid-cooled energy storage systems and 320kW photovoltaic inverters. The company also issued guidance for the second quarter of 2026: - Revenue is expected to be in the range of $1.535 billion to $1.635 billion. - GAAP gross margin is projected at 37.9% to 39.9%, and non-GAAP gross margin at 38.0% to 40.0%. - GAAP operating expenses are forecasted to be between $302 million and $317 million, while non-GAAP operating expenses are expected to range from $287 million to $302 million. - GAAP diluted EPS is anticipated to be $0.60 to $0.72, and non-GAAP diluted EPS is projected at $0.65 to $0.77.