onsemi Reports Second Quarter 2026 Results

Rhea-AI Summary

onsemi (Nasdaq: ON) reported Q2 2026 revenue of $1.6035 billion, up 9% year-over-year, with GAAP gross margin of 38.4% and operating margin of 16.1%. GAAP diluted EPS was $0.56, while non-GAAP diluted EPS was $0.74, growing roughly four times faster than revenue, according to the company.

Free cash flow reached $425.4 million, roughly quadrupling year-over-year, lifting free cash flow margin from about 7% to 27%. Cash from operations rose 150%. The company repurchased $332 million of shares in the quarter, bringing year-to-date shareholder returns to about 105% of free cash flow. Segment revenue grew 19% in PSG, fell 2% in AMG, and rose 7% in ISG. onsemi announced a planned acquisition of Synaptics, new AI data center design wins, the launch of its GaNEXUS gallium nitride power portfolio, and an extension of its automotive power role with Rivian’s R2 platform.

For Q3 2026, onsemi guides revenue to $1.65–$1.75 billion, non-GAAP gross margin of 40.0–42.0%, and non-GAAP diluted EPS of $0.81–$0.93.

Positive

• Revenue up 9% year-over-year to $1.6035 billion
• Non-GAAP diluted EPS up to $0.74 from $0.53 year-over-year
• Free cash flow $425.4 million, roughly 4x year-over-year with 27% margin
• Cash from operations up 150% year-over-year
• PSG segment revenue up 19% year-over-year to $829 million
• Q3 2026 non-GAAP EPS guidance of $0.81–$0.93

Negative

• AMG segment revenue down 2% year-over-year to $545.7 million
• ISG segment revenue down 3% sequentially to $228.8 million
• Q2 2026 restructuring, asset impairment and other charges of $41.2 million

News Explained

onsemi’s reported Q2 2026 results include a July 3, 2026 balance sheet showing cash and equivalents, alongside current debt and long-term debt.

Market Reaction – ON

+3.36% $83.10

15m delay

+3.36% Vs previous close

$83.10 Last Price

$78.81 $86.75 Day Range

$32.34B Market Cap

1.5x Rel. Volume

Following this news, ON has gained 3.36%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 14 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $83.10.

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Market Context

ON had low short positioning in the platform data. That context places the earnings announcement alo...

Analysis

ON had low short positioning in the platform data. That context places the earnings announcement alongside a limited short-interest overhang, while forward-looking guidance and the Synaptics transaction remain subject to execution and disclosed regulatory risks.

Key Figures

Revenue: $1,603.5 million Revenue growth: 9% GAAP diluted EPS: $0.56 +5 more

8 metrics

Revenue $1,603.5 million Q2 2026

Revenue growth 9% year-over-year, Q2 2026

GAAP diluted EPS $0.56 Q2 2026

Non-GAAP diluted EPS $0.74 Q2 2026

Free cash flow $425.4 million Q2 2026

Share repurchases $332 million Q2 2026

Q3 revenue outlook $1,650 to $1,750 million third quarter 2026 outlook

Q3 non-GAAP diluted EPS outlook $0.81 to $0.93 third quarter 2026 outlook

Previous Earnings Reports

5 past events · Latest: May 04 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 04	Q1 earnings report	Positive	+0.6%	Reported quarterly results, repurchases, and AI data center revenue growth
Feb 09	Q4 earnings report	Positive	+3.5%	Reported quarterly results, annual free cash flow, and Q1 guidance
Nov 03	Q3 earnings report	Positive	+0.8%	Reported quarterly results, cash generation, repurchases, and Q4 guidance
Aug 04	Q2 earnings report	Negative	-15.6%	Reported revenue declines, margin pressure, and negative segment trends
May 05	Q1 earnings report	Negative	-8.3%	Reported revenue decline, operating margin pressure, and segment contraction

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions were mixed, with three positive reactions and two negative reactions; the historical earnings average move was -3.81%.

Key Terms

gaap, non-gaap, free cash flow, convertible notes, +2 more

6 terms

gaap financial

"GAAP gross margin of 38.4% and non-GAAP gross margin of 39.3%"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"non-GAAP diluted earnings per share $0.74"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

free cash flow financial

"free cash flow of $425.4 million quadrupled year-over-year"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

convertible notes financial

"the incremental dilutive shares from the convertible notes"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

anti-dilutive financial

"include the anti-dilutive impact of the hedge transactions"

A claim, security feature, or action described as anti-dilutive prevents or does not cause a reduction in existing shareholders’ per-share values when additional shares could be issued. For example, certain convertible securities or corporate actions are treated as anti-dilutive for earnings-per-share calculations if including them would raise EPS rather than lower it; investors watch this because it affects reported per-share metrics, ownership percentages, and valuation comparisons, like keeping pie slices the same size instead of making them smaller.

gallium nitride technical

"onsemi's gallium nitride power portfolio"

Gallium nitride is a durable semiconductor material used to make electronic components that switch faster, handle higher voltages, and waste less energy than older silicon parts. Think of it as a lighter, more efficient motor in an appliance: it lets devices shrink, run cooler and save power, which can lower manufacturing costs, enable new products and boost sales or margins for companies that adopt it—key factors investors watch.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Earnings per share increases four times faster than revenue year-over-year

SCOTTSDALE, Ariz., Aug. 03, 2026 (GLOBE NEWSWIRE) -- onsemi (the “Company”) (Nasdaq: ON) today announced its second quarter 2026 results with the following highlights:

• Revenue of $1,604 million, increasing 9% year-over-year
• GAAP gross margin of 38.4% and non-GAAP gross margin of 39.3%
• GAAP operating margin of 16.1% and non-GAAP operating margin 20.8%
• GAAP diluted earnings per share of $0.56 and non-GAAP diluted earnings per share $0.74
• Cash from operations increased by 150% and free cash flow of $425.4 million quadrupled year-over-year
• Share repurchases of $332 million, bringing year-to-date shareholder returns to approximately 105% of free cash flow

“We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions,” said Hassane El-Khoury, President and CEO of onsemi. “AI data center remains our fastest-growing business, and we now expect revenue to more than double in 2026, demonstrating the strength of our intelligent power portfolio and growing customer adoption across the power tree.”

“Our results demonstrate the operating leverage in our business model,” said Thad Trent, EVP and CFO of onsemi. “Year-over-year earnings per share grew four times faster than revenue, driven by gross margin expansion and disciplined cost management. Free cash flow margin expanded from approximately 7% to 27% year-over-year, reflecting the strength of our operating model, and as demand continues to improve, we are increasingly confident in our ability to drive profitable growth and long-term shareholder value.”

Business Highlights:

• Announced the planned acquisition of Synaptics, expanding capabilities in connected compute at accretive gross margins to support a market expansion while complementing leadership in power and sensing
• Expanded role in NVIDIA MGX ecosystem as AI infrastructure power demands accelerate
• Secured strategic AI data center platform wins with Great Wall, a leading China cloud infrastructure power supplier, expanding EliteSiC and silicon MOSFETs and controller content
• Launched ​​GaNEXUS​, onsemi's gallium nitride power portfolio spanning 40V to 650V, serving AI data centers, robotics, and industrial infrastructure applications
• Extended leadership in automotive zonal architecture and on-board charging with Rivian’s R2 platform with power solutions that enable efficient power distribution and conversion
  
  

Selected financial results for the quarter are shown below with comparable periods (unaudited):

	GAAP										Non-GAAP
(Revenue and Net Income in millions)	Q2 2026			Q1 2026			Q2 2025				Q2 2026			Q1 2026			Q2 2025
Revenue	$1,603.5			$1,513.3			$1,468.7				$1,603.5			$1,513.3			$1,468.7
Gross Margin		38.4%			38.5%			37.6%				39.3%			38.5%			37.6%
Operating Margin		16.1%		(3.5)%				13.2%				20.8%			19.1%			17.3%
Net Income (loss) attributable to ON Semiconductor Corporation	$226.8			($33.4)			$170.3				$293.8			$253.1			$221.3
Diluted Earnings (loss) Per Share	$0.56			($0.08)			$0.41				$0.74			$0.64			$0.53

Revenue Summary (in millions) (Unaudited)
	Quarters Ended
Business Segment	Q2 2026			Q1 2026			Q2 2025				Sequential Change		Year-over- Year Change
PSG	$	829.0		$	736.6		$	698.2			13	%	19	%
AMG		545.7			540.4			555.9			1	%	(2	)%
ISG		228.8			236.3			214.6			(3	)%	7	%
Total	$	1,603.5		$	1,513.3		$	1,468.7			6	%	9	%

THIRD QUARTER 2026 OUTLOOK

The following table outlines onsemi’s projected third quarter of 2026 GAAP and non-GAAP outlook.

	Total onsemi GAAP	Special Items **	Total onsemi Non-GAAP***
Revenue	$1,650 to $1,750 million	-	$1,650 to $1,750 million
Gross Margin	39.9% to 41.9%	0.1%	40.0% to 42.0%
Operating Expenses	$318 to $333 million	$15 million	$303 to $318 million
Other Income and Expense (including interest), net	($18 million)	-	($18 million)
Diluted Earnings Per Share	$0.79 to $0.91	$0.02	$0.81 to $0.93
Diluted Shares Outstanding *	402 million	7 million	395 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, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% 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, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% 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 August 3, 2026 to discuss this announcement and onsemi’s second 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 part of 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
Krystal.Heaton@onsemi.com	investor@onsemi.com

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 third 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												Six Months Ended
	July 3, 2026				April 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Revenue	$	1,603.5			$	1,513.3			$	1,468.7			$	3,116.8			$	2,914.4
Cost of revenue		987.2				930.2				916.8				1,917.4				2,068.7
Gross profit		616.3				583.1				551.9				1,199.4				845.7
Gross margin		38.4	%			38.5	%			37.6	%			38.5	%			29.0	%
Operating expenses:
Research and development		140.8				144.3				143.8				285.1				307.9
Selling and marketing		63.3				63.0				63.3				126.3				131.6
General and administrative		101.9				89.4				91.2				191.3				175.6
Amortization of intangible assets		10.5				10.5				11.0				21.0				22.4
Restructuring, asset impairments and other, net		41.2				329.3				49.2				370.5				588.5
Total operating expenses		357.7				636.5				358.5				994.2				1,226.0
Operating income (loss)		258.6				(53.4	)			193.4				205.2				(380.3	)
Other income (expense), net:
Interest expense		(13.7	)			(12.7	)			(17.9	)			(26.4	)			(35.9	)
Interest income		17.4				17.7				25.2				35.1				51.8
Other income		8.6				3.8				1.5				12.4				5.6
Other income (expense), net		12.3				8.8				8.8				21.1				21.5
Income (loss) before income taxes		270.9				(44.6	)			202.2				226.3				(358.8	)
Income tax (provision) benefit		(43.4	)			11.7				(30.5	)			(31.7	)			45.3
Net income (loss)		227.5				(32.9	)			171.7				194.6				(313.5	)
Less: Net income attributable to non-controlling interest		(0.7	)			(0.5	)			(1.4	)			(1.2	)			(2.3	)
Net income (loss) attributable to ON Semiconductor Corporation	$	226.8			$	(33.4	)		$	170.3			$	193.4			$	(315.8	)
Net income (loss) per share of common stock attributable to ON Semiconductor Corporation:
Basic	$	0.58			$	(0.08	)		$	0.41			$	0.49			$	(0.76	)
Diluted	$	0.56			$	(0.08	)		$	0.41			$	0.48			$	(0.76	)
Weighted average common shares outstanding:
Basic		390.3				394.1				414.6				392.2				418.0
Diluted		404.4				394.1				414.9				401.5				418.0

ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions)
	July 3, 2026				April 3, 2026				December 31, 2025
Assets
Cash and cash equivalents	$	3,514.5			$	2,003.6			$	2,147.6
Short-term investments		350.0				400.0				400.0
Receivables, net		897.2				862.8				908.0
Inventories		2,047.5				2,049.2				1,989.6
Assets held-for-sale		31.4				40.4				25.0
Other current assets		441.2				419.6				352.9
Total current assets		7,281.8				5,775.6				5,823.1
Property, plant and equipment, net		2,924.9				3,035.6				3,369.0
Goodwill		1,687.6				1,679.9				1,679.9
Intangible assets, net		329.4				332.2				343.9
Deferred tax assets		1,014.3				933.2				929.1
ROU financing lease assets		—				—				23.1
Other assets		247.1				254.3				356.0
Total assets	$	13,485.1			$	12,010.8			$	12,524.1
Liabilities and Stockholders’ Equity
Accounts payable	$	498.3			$	486.1			$	572.3
Accrued expenses and other current liabilities		801.0				698.7				714.9
Current portion of financing lease liabilities		0.5				0.5				0.5
Current portion of long-term debt		802.1				—				—
Total current liabilities		2,101.9				1,185.3				1,287.7
Long-term debt		3,657.3				2,982.9				2,980.5
Deferred tax liabilities		46.8				46.5				41.7
Long-term financing lease liabilities		22.8				23.1				23.8
Other long-term liabilities		417.8				452.2				498.5
Total liabilities		6,246.6				4,690.0				4,832.2
ON Semiconductor Corporation stockholders’ equity:
Common stock		6.3				6.3				6.2
Additional paid-in capital		5,632.8				5,582.5				5,538.6
Accumulated other comprehensive loss		(67.1	)			(61.7	)			(55.5	)
Accumulated earnings		8,435.3				8,208.5				8,241.9
Less: Treasury stock, at cost		(6,788.6	)			(6,433.9	)			(6,057.9	)
Total ON Semiconductor Corporation stockholders’ equity		7,218.7				7,301.7				7,673.3
Non-controlling interest		19.8				19.1				18.6
Total stockholders’ equity		7,238.5				7,320.8				7,691.9
Total liabilities and stockholders’ equity	$	13,485.1			$	12,010.8			$	12,524.1

	Quarters Ended												Six Months Ended
	July 3, 2026				April 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Cash flows from operating activities:
Net income (loss)	$	227.5			$	(32.9	)		$	171.7			$	194.6			$	(313.5	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		141.3				286.7				156.4				428.0				324.6
Gain on sale and disposal of fixed assets		(0.3	)			(1.1	)			(5.8	)			(1.4	)			(5.8	)
Amortization of debt discount and issuance costs		3.8				2.9				2.8				6.7				5.7
Share-based compensation		37.4				37.3				34.4				74.7				68.3
Non-cash asset impairment charges		16.3				147.0				40.6				163.3				472.1
Change in deferred tax balances		(12.8	)			2.7				(18.5	)			(10.1	)			(32.2	)
Other		1.9				(2.2	)			2.5				(0.3	)			4.3
Changes in assets and liabilities		44.6				(201.3	)			(199.8	)			(156.7	)			263.1
Net cash provided by operating activities		459.7				239.1				184.3				698.8				786.6
Cash flows from investing activities:
Payments for acquisition of property, plant, and equipment		(34.3	)			(21.9	)			(78.2	)			(56.2	)			(225.8	)
Proceeds from sale of property, plant and equipment		7.6				1.0				6.5				8.6				6.7
Purchase of short-term investments		(350.0	)			(300.0	)			(300.0	)			(650.0	)			(550.0	)
Proceeds from the maturity of short-term investments		400.0				300.0				250.0				700.0				550.0
Payments for acquisition of a business, net of cash acquired		(13.0	)			—				—				(13.0	)			(117.5	)
Other		(3.0	)			4.2				—				1.2				—
Net cash provided by (used in) investing activities		7.3				(16.7	)			(121.7	)			(9.4	)			(336.6	)
Cash flows from financing activities:
Proceeds for common stock issuance under the ESPP		5.3				6.7				5.3				12.0				10.6
Payment of tax withholding for RSUs		(18.6	)			(26.9	)			(2.7	)			(45.5	)			(25.1	)
Repurchase of common stock		(344.8	)			(345.7	)			(302.3	)			(690.5	)			(602.4	)
Issuance and borrowings under debt agreements		1,473.7				—				—				1,473.7				—
Reimbursement of debt issuance and other financing costs		3.4				—				—				3.4				—
Payment of debt issuance and other financing costs		(4.2	)			—				—				(4.2	)			—
Payment for purchase of bond hedges		(351.6	)			—				—				(351.6	)			—
Proceeds from issuance of warrants		281.0				—				—				281.0				—
Payment of finance lease obligations		(0.1	)			(0.1	)			(0.4	)			(0.2	)			(0.8	)
Net cash provided by (used in) financing activities		1,044.1				(366.0	)			(300.1	)			678.1				(617.7	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(0.3	)			(0.3	)			1.9				(0.6	)			3.9
Net increase (decrease) in cash, cash equivalents and restricted cash		1,510.8				(143.9	)			(235.6	)			1,366.9				(163.8	)
Beginning cash, cash equivalents and restricted cash		2,005.1				2,149.0				2,765.2				2,149.0				2,693.4
Ending cash, cash equivalents and restricted cash	$	3,515.9			$	2,005.1			$	2,529.6			$	3,515.9			$	2,529.6

			Quarters Ended												Six Months Ended
			July 3, 2026				April 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Reconciliation of GAAP to non-GAAP gross profit:
GAAP gross profit			$	616.3			$	583.1			$	551.9			$	1,199.4			$	845.7
	Special items:
	a)	Restructuring-related inventory and other charges		13.4				(1.0	)			(1.9	)			12.4				281.5
	b)	Amortization of intangible assets		1.2				1.2				1.3				2.4				2.6
	c)	Amortization of fair market value step-up of inventory		—				—				1.2				—				1.2
		Total special items		14.6				0.2				0.6				14.8				285.3
Non-GAAP gross profit			$	630.9			$	583.3			$	552.5			$	1,214.2			$	1,131.0
Reconciliation of GAAP to non-GAAP gross margin:
GAAP gross margin				38.4	%			38.5	%			37.6	%			38.5	%			29.0	%
	Special items:
	a)	Restructuring-related inventory and other charges		0.8	%		(0.1		)%		(0.1		)%			0.4	%			9.7	%
	b)	Amortization of intangible assets		0.1	%			0.1	%			0.1	%			0.1	%			0.1	%
	c)	Amortization of fair market value step-up of inventory		—	%			—	%			0.1	%			—	%			—	%
		Total special items		0.9	%			—	%			0.1	%			0.5	%			9.8	%
Non-GAAP gross margin				39.3	%			38.5	%			37.6	%			39.0	%			38.8	%
Reconciliation of GAAP to non-GAAP operating expenses:
GAAP operating expenses			$	357.7			$	636.5			$	358.5			$	994.2			$	1,226.0
	Special items:
	a)	Amortization of intangible assets		(10.5	)			(10.5	)			(11.0	)			(21.0	)			(22.4	)
	b)	Restructuring, asset impairments and other charges, net		(41.2	)			(329.3	)			(49.2	)			(370.5	)			(588.5	)
	c)	Third-party acquisition and divestiture-related costs		(7.6	)			(1.4	)			(0.6	)			(9.0	)			(2.9	)
	d)	Adjustments to contingent consideration		(1.6	)			(1.6	)			—				(3.2	)			—
		Total special items		(60.9	)			(342.8	)			(60.8	)			(403.7	)			(613.8	)
Non-GAAP operating expenses			$	296.8			$	293.7			$	297.7			$	590.5			$	612.2
Reconciliation of GAAP to non-GAAP operating income:
GAAP operating income (loss)			$	258.6			$	(53.4	)		$	193.4			$	205.2			$	(380.3	)
	Special items:
	a)	Restructuring-related inventory and other charges		13.4				(1.0	)			(1.9	)			12.4				281.5
	b)	Amortization of intangible assets		11.7				11.7				12.3				23.4				25.0
	c)	Restructuring, asset impairments and other charges, net		41.2				329.3				49.2				370.5				588.5
	d)	Third-party acquisition and divestiture-related costs		7.6				1.4				0.6				9.0				2.9
	e)	Amortization of fair market value step-up of inventory		—				—				1.2				—				1.2
	f)	Adjustments to contingent consideration		1.6				1.6				—				3.2				—
		Total special items		75.5				343.0				61.4				418.5				899.1
Non-GAAP operating income			$	334.1			$	289.6			$	254.8			$	623.7			$	518.8
Reconciliation of GAAP to non-GAAP operating margin(operating income / revenue):
GAAP operating margin				16.1	%		(3.5		)%			13.2	%			6.6	%		(13.0		)%
	Special items:
	a)	Restructuring related inventory and other charges		0.8	%		(0.1		)%		(0.1		)%			0.4	%			9.7	%
	b)	Amortization of intangible assets		0.7	%			0.8	%			0.8	%			0.8	%			0.9	%
	c)	Restructuring, asset impairments and other charges, net		2.6	%			21.8	%			3.3	%			11.9	%			20.2	%
	d)	Third-party acquisition and divestiture-related costs		0.5	%			0.1	%			—	%			0.3	%			0.1	%
	e)	Amortization of fair market value step-up of inventory		—	%			—	%			0.1	%			—	%			—	%
	f)	Adjustments to contingent consideration		0.1	%			0.1	%			—	%			0.1	%			—	%
		Total special items		4.7	%			22.7	%			4.1	%			13.5	%			30.9	%
Non-GAAP operating margin				20.8	%			19.1	%			17.3	%			20.0	%			17.8	%
Reconciliation of GAAP to non-GAAP income before income taxes:
GAAP income (loss) before income taxes			$	270.9			$	(44.6	)		$	202.2			$	226.3			$	(358.8	)
	Special items:
	a)	Restructuring-related inventory and other charges		13.4				(1.0	)			(1.9	)			12.4				281.5
	b)	Amortization of intangible assets		11.7				11.7				12.3				23.4				25.0
	c)	Restructuring, asset impairments and other charges, net		41.2				329.3				49.2				370.5				588.5
	d)	Third-party acquisition and divestiture-related costs		7.6				1.4				0.6				9.0				2.9
	e)	Amortization of fair market value step-up of inventory		—				—				1.2				—				1.2
	f)	Adjustments to contingent consideration		1.6				1.6				—				3.2				—
		Total special items		75.5				343.0				61.4				418.5				899.1
Non-GAAP income before income taxes			$	346.4			$	298.4			$	263.6			$	644.8			$	540.3
Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation:
GAAP net income (loss) attributable to ON Semiconductor Corporation			$	226.8			$	(33.4	)		$	170.3			$	193.4			$	(315.8	)
	Special items:
	a)	Restructuring-related inventory and other charges		13.4				(1.0	)			(1.9	)			12.4				281.5
	b)	Amortization of intangible assets		11.7				11.7				12.3				23.4				25.0
	c)	Restructuring, asset impairments and other charges, net		41.2				329.3				49.2				370.5				588.5
	d)	Third-party acquisition and divestiture-related costs		7.6				1.4				0.6				9.0				2.9
	e)	Amortization of fair market value step-up of inventory		—				—				1.2				—				1.2
	f)	Adjustments to contingent consideration		1.6				1.6				—				3.2				—
	g)	Adjustment to Income taxes		(8.5	)			(56.5	)			(10.4	)			(65.0	)			(130.4	)
		Total special items		67.0				286.5				51.0				353.5				768.7
Non-GAAP net income attributable to ON Semiconductor Corporation			$	293.8			$	253.1			$	221.3			$	546.9			$	452.9
Reconciliation of GAAP to non-GAAP diluted shares outstanding:
GAAP diluted shares outstanding				404.4				394.1				414.9				401.5				418.0
	Special items:
	a)	Less: dilutive shares attributable to convertible notes		(7.4	)			—				—				(4.9	)			—
	b)	Add: dilutive shares attributable to share-based awards		—				1.9				—				—				0.4
		Total special items		(7.4	)			1.9				—				(4.9	)			0.4
Non-GAAP diluted shares outstanding				397.0				396.0				414.9				396.6				418.4
Non-GAAP diluted earnings per share:
Non-GAAP net income attributable to ON Semiconductor Corporation			$	293.8			$	253.1			$	221.3			$	546.9			$	452.9
Non-GAAP diluted shares outstanding				397.0				396.0				414.9				396.6				418.4
Non-GAAP diluted earnings per share			$	0.74			$	0.64			$	0.53			$	1.38			$	1.08
Reconciliation of net cash provided by operating activities to free cash flow:
Net cash provided by operating activities			$	459.7			$	239.1			$	184.3			$	698.8			$	786.6
	Special items:
	a)	Payments for acquisition of property, plant and equipment		(34.3	)			(21.9	)			(78.2	)			(56.2	)			(225.8	)
		Total special items		(34.3	)			(21.9	)			(78.2	)			(56.2	)			(225.8	)
Free cash flow			$	425.4			$	217.2			$	106.1			$	642.6			$	560.8

Certain of the amounts in the above tables may not total due to rounding of individual amounts.

FREE CASH FLOW

	Quarters Ended
	October 3, 2025				December 31, 2025				April 3, 2026				July 3, 2026				Last Twelve Months
Net cash provided by operating activities	$	418.7			$	554.5			$	239.1			$	459.7			$	1,672.0
Payments for acquisition of property, plant and equipment		(46.3	)			(69.1	)			(21.9	)			(34.3	)			(171.6	)
Free cash flow	$	372.4			$	485.4			$	217.2			$	425.4			$	1,500.4
Revenue	$	1,550.9			$	1,530.1			$	1,513.3			$	1,603.5			$	6,197.8

SHARE-BASED COMPENSATION

Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows:

	Quarters Ended												Six Months Ended
	July 3, 2026				April 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Cost of revenue	$	6.8			$	6.4			$	6.1			$	13.2			$	12.1
Research and development		6.0				7.3				6.3				13.3				12.6
Selling and marketing		4.8				5.1				4.9				9.9				9.6
General and administrative		19.8				18.5				17.1				38.3				34.0
Total share-based compensation	$	37.4			$	37.3			$	34.4			$	74.7			$	68.3

SUPPLEMENTAL FINANCIAL DATA

	Quarters Ended												Six Months Ended
	July 3, 2026				April 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Net cash provided by operating activities	$	459.7			$	239.1			$	184.3			$	698.8			$	786.6
Free cash flow	$	425.4			$	217.2			$	106.1			$	642.6			$	560.8
Cash paid for income taxes	$	50.8			$	46.6			$	65.0			$	97.4			$	86.5
Depreciation and amortization (1)	$	141.3			$	286.7			$	156.4			$	428.0			$	324.6
Less: Amortization of intangible assets		11.7				11.7				12.3				23.4				25.0
Depreciation and amortization (excl. amortization of intangible assets) (1)	$	129.6			$	275.0			$	144.1			$	404.6			$	299.6
(1) Accelerated depreciation and amortization related to the 2025 and 2026 Manufacturing Realignment Programs	$	—			$	136.5			$	2.0			$	136.5			$	14.5

To supplement the consolidated financial results prepared in accordance with GAAP, onsemi uses certain non-GAAP measures, which are adjusted from the most directly comparable GAAP measures to exclude items related to the amortization of acquisition-related intangibles, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, tax impact of these items and certain other non-recurring items, as necessary. Management does not consider the effects of these items in evaluating the core operational activities of onsemi. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate onsemi’s current performance. In addition, the Company believes that most analysts covering onsemi use the non-GAAP measures to evaluate onsemi’s performance. Given management’s and other relevant parties’ use of these non-GAAP measures, onsemi believes these measures are important to investors in understanding onsemi’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in onsemi’s core business across different time periods. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. 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.

Non-GAAP Gross Profit and Gross Margin

The use of non-GAAP gross profit and gross margin allows management to evaluate, among other things, the gross profit and gross margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, amortization of intangible assets, amortization of appraised inventory fair market value step-up, impact of business wind down and non-recurring facility costs. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Operating Income and Operating Margin

The use of non-GAAP operating income and operating margin allows management to evaluate, among other things, the operating income and operating margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, amortization and impairments of intangible assets, third party acquisition and divestiture-related costs, restructuring charges, asset impairments and certain other special items as necessary. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Net Income Attributable to ON Semiconductor Corporation and Non-GAAP Diluted Earnings Per Share

The use of non-GAAP net income attributable to ON Semiconductor Corporation and non-GAAP diluted earnings per share allows management to evaluate the operating results of onsemi’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally, the restructuring related cost of revenue charges, amortization and impairments of intangible assets, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, restructuring, asset impairments, gains and losses on debt prepayment, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, discrete tax items and other non-GAAP tax adjustments and certain other special items, as necessary. In addition, these measures are important components of management’s internal performance measurement and incentive and reward process, as they are used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, setting targets and forecasting future results. For our non-GAAP reporting we apply a projected, normalized non-GAAP effective tax rate of 15% for 2026 and 16% for 2025. We calculate this non-GAAP effective tax rate on an annual basis. We may update this non-GAAP effective tax rate at any time for a variety of reasons, including, but not limited to, the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Management presents these non-GAAP financial measures to enable investors and analysts to understand the results of operations of onsemi’s core businesses and, to the extent comparable, to compare our results of operations on a more consistent basis against those of other companies in our industry.

Free Cash Flow

The use of free cash flow allows management to evaluate, among other things, the ability of the Company to make interest or principal payments on its debt. Free cash flow is defined as the difference between cash flow from operating activities and capital expenditures disclosed under investing activities in the consolidated statement of cash flows. Free cash flow is not an alternative to cash flow from operating activities as a measure of liquidity. It is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our financial performance independent of the cash capital expenditures.

Non-GAAP Diluted Share Count

The use of non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution due to the outstanding restricted stock units excluding the dilution from the convertible notes that is covered by hedging activity up to a certain threshold. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count includes the anti-dilutive impact of the Company’s hedge transactions issued concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding.

FAQ

How did onsemi (NASDAQ: ON) perform in Q2 2026 earnings?

onsemi reported Q2 2026 revenue of $1.6035 billion, up 9% year-over-year, and GAAP diluted EPS of $0.56. According to onsemi, non-GAAP diluted EPS reached $0.74, with free cash flow of $425.4 million and a 27% free cash flow margin.

What are onsemi’s Q3 2026 guidance figures for revenue and EPS (ON)?

onsemi projects Q3 2026 revenue of $1.65–$1.75 billion and non-GAAP diluted EPS of $0.81–$0.93. According to onsemi, expected non-GAAP gross margin is 40.0–42.0%, with operating expenses of $303–$318 million on a non-GAAP basis.

How did onsemi’s cash flow and share repurchases trend in Q2 2026?

onsemi generated Q2 2026 free cash flow of $425.4 million, about four times higher year-over-year. According to onsemi, cash from operations rose 150%, and the company repurchased $332 million of shares, returning about 105% of year-to-date free cash flow.

How did onsemi’s business segments (PSG, AMG, ISG) perform in Q2 2026?

In Q2 2026, PSG revenue was $829 million (up 19% year-over-year), AMG was $545.7 million (down 2%), and ISG was $228.8 million (up 7%). According to onsemi, total company revenue increased 9% year-over-year to $1.6035 billion.

What were onsemi’s profit margins in Q2 2026 and how did they support EPS growth?

onsemi reported Q2 2026 GAAP gross margin of 38.4% and operating margin of 16.1%, with non-GAAP gross margin at 39.3%. According to onsemi, EPS grew about four times faster than revenue, supported by gross margin expansion and disciplined cost management.

What strategic initiatives did onsemi announce alongside its Q2 2026 results (ON)?

onsemi announced a planned acquisition of Synaptics, new AI data center platform wins, and its GaNEXUS gallium nitride power portfolio. According to onsemi, it also extended its automotive power role with Rivian’s R2 platform and expanded participation in the NVIDIA MGX ecosystem.

How did onsemi’s GAAP results compare to non-GAAP results in Q2 2026?

onsemi’s Q2 2026 GAAP diluted EPS was $0.56, while non-GAAP diluted EPS was $0.74. According to onsemi, GAAP operating margin was 16.1% versus non-GAAP operating margin of 20.8%, reflecting adjustments such as restructuring and other special items.