Q1 2026: onsemi (Nasdaq: ON) posts revenue growth, restructures and guides higher EPS
Filing Impact
Filing Sentiment
Form Type
8-K
onsemi reported mixed first quarter 2026 results, with solid underlying performance but a GAAP loss driven by restructuring. Revenue was $1.51 billion, up 5% year over year, and GAAP gross margin improved to 38.5% from 20.3% a year earlier.
GAAP results showed a net loss of $33.4 million, or $(0.08) per share, largely due to $329.3 million of restructuring, asset impairments and other charges. On a non-GAAP basis, net income was $253.1 million and diluted earnings per share were $0.64, up from $0.55 in the prior year quarter.
Free cash flow reached $217.2 million, and the company returned capital through $345.7 million of share repurchases. For the second quarter of 2026, onsemi projects revenue between $1.535 billion and $1.635 billion and non-GAAP diluted earnings per share between $0.65 and $0.77.
Positive
- Non-GAAP earnings and margins improved: Q1 2026 non-GAAP net income was $253.1 million with diluted EPS of $0.64, up from $0.55 a year earlier, and non-GAAP operating margin reached 19.1%.
- Strong cash generation: Free cash flow was $217.2 million in Q1 2026, and the company returned capital via $345.7 million of share repurchases while maintaining over $2.0 billion in cash and cash equivalents.
Negative
- GAAP loss driven by large restructuring charges: Q1 2026 GAAP net loss was $33.4 million, or $(0.08) per share, primarily due to $329.3 million of restructuring, asset impairments and other charges.
- Asset base and equity trending lower: Total assets declined to $12.01 billion from $13.25 billion a year earlier, and ON Semiconductor Corporation stockholders’ equity fell to $7.30 billion from $8.03 billion.
Insights
Underlying earnings and cash flow are strong despite a restructuring-driven GAAP loss.
onsemi delivered Q1 2026 revenue of $1.5133 billion, up 5% year over year, with GAAP gross margin expanding to 38.5%. Non-GAAP operating income reached $289.6 million, reflecting a 19.1% operating margin, supported by improving mix and cost structure.
GAAP results were heavily impacted by $329.3 million of restructuring, asset impairments and other charges, flipping the quarter to a $33.4 million net loss. Adjusted earnings remained solid at $253.1 million non-GAAP net income and $0.64 non-GAAP diluted EPS, up from $0.55 a year ago.
Free cash flow was robust at $217.2 million, and the company repurchased $345.7 million of stock. Management’s Q2 2026 outlook calls for revenue of $1.535–$1.635 billion and non-GAAP EPS of $0.65–$0.77, suggesting continued recovery from the prior cyclical trough.
8-K Event Classification
15 items: 0.2, 0.4, 1.9, 2.02, 9.01, 22.7, 33.9, 75.4, 89.9, 102.8, 284.7, 286.5, 343.0, 717.7, 837.7
15 items
Item 0.2
Item 0.2
Item 0.4
Item 0.4
Item 1.9
Item 1.9
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 22.7
Item 22.7
Item 33.9
Item 33.9
Item 75.4
Item 75.4
Item 89.9
Item 89.9
Item 102.8
Item 102.8
Item 284.7
Item 284.7
Item 286.5
Item 286.5
Item 343.0
Item 343.0
Item 717.7
Item 717.7
Item 837.7
Item 837.7
Key Figures
Q1 2026 revenue: $1,513.3 million
Q1 2026 GAAP net income (loss): -$33.4 million
Q1 2026 non-GAAP net income: $253.1 million
+5 more
8 metrics
Q1 2026 revenue
$1,513.3 million
Up from $1,445.7 million in Q1 2025
Q1 2026 GAAP net income (loss)
-$33.4 million
Includes $329.3 million of restructuring and impairment charges
Q1 2026 non-GAAP net income
$253.1 million
Basis for non-GAAP diluted EPS of $0.64
Q1 2026 free cash flow
$217.2 million
Net cash from operating activities minus capital expenditures
Share repurchases Q1 2026
$345.7 million
Repurchase of common stock in the quarter
Q2 2026 revenue guidance
$1,535–$1,635 million
Company outlook for the second quarter of 2026
Q2 2026 non-GAAP EPS guidance
$0.65–$0.77
Projected non-GAAP diluted earnings per share
Q1 2026 GAAP gross margin
38.5%
Improved from 20.3% in Q1 2025
Key Terms
non-GAAP gross margin, restructuring, asset impairments and other, net, free cash flow, share-based compensation, +2 more
6 terms
non-GAAP gross margin financial
"Non-GAAP gross margin | | | 38.5 | % | | | 38.2 | % | | | 40.0 | %"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
restructuring, asset impairments and other, net financial
"Restructuring, asset impairments and other, net | | | 329.3 |"
free cash flow financial
"Free cash flow | | $ | 217.2 | | | $ | 485.4 | | | $ | 454.7 |"
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.
share-based compensation financial
"Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows"
Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.
diluted earnings per share financial
"Diluted Earnings (loss) Per Share | | $ | (0.08 | ) | | $ | 0.45"
Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.
non-GAAP diluted share count financial
"Non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution"
Earnings Snapshot
Revenue: $1,513.3 million · Guidance included
Q1 2026
Revenue
$1,513.3 million
5% year-over-year
GAAP net income (loss)
-$33.4 million
improved from -$486.1 million Q1 2025
Non-GAAP net income
$253.1 million
up from $231.6 million Q1 2025
Non-GAAP diluted EPS
$0.64
up from $0.55 Q1 2025
Free cash flow
$217.2 million
down from $454.7 million Q1 2025
Guidance
For Q2 2026, onsemi expects revenue of $1,535–$1,635 million, GAAP diluted EPS of $0.60–$0.72, and non-GAAP diluted EPS of $0.65–$0.77.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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ON Semiconductor Corporation
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(Address of principal executive offices)
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(Zip Code)
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(602 ) 244-6600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange
on which registered
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The Nasdaq Stock Market LLC
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the
Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operation and Financial Condition.
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On May 4, 2026, ON Semiconductor Corporation announced in a news release
its financial performance for the first quarter ended April 3, 2026 and other related material information (the “Earnings Release”). A copy of the Earnings Release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished under Item 2.02 and shall not be deemed to
be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that
section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set
forth by specific reference in such filing.
| Item 9.01. |
Financial Statements and Exhibits.
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Exhibits
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The below exhibit is furnished as part of this Current Report on Form 8-K.
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Exhibit No.
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Description
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99.1
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News release for ON Semiconductor Corporation, dated May 4, 2026, announcing financial performance for the first quarter ended April 3, 2026
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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ON SEMICONDUCTOR CORPORATION
(Registrant)
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Date: May 4, 2026
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By:
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/s/ Thad Trent
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Thad Trent
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Executive Vice President and Chief Financial Officer
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Exhibit 99.1
onsemi Reports First Quarter 2026 Results
Year-over-year operating income growth outpaces revenue growth by 2x
SCOTTSDALE, Ariz., – May 4, 2026 –
onsemi (the “Company”) (Nasdaq: ON) today announced its first quarter 2026 results with the following highlights:
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Revenue of $1,513 million, exceeding the midpoint of our guidance
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GAAP and non-GAAP gross margin of 38.5%
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GAAP operating margin of (3.5)% and non-GAAP operating margin 19.1%
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GAAP diluted loss per share of ($0.08) and non-GAAP diluted earnings per share $0.64
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Share repurchases of $346 million, representing approximately 160% of free cash flow
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“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:
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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.
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Leading in the transition to 900V EV architectures with onsemi EliteSiC, enabling extended range and flash charging,
including expanded collaborations with Geely and NIO.
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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.
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Announced new design win with Sineng Electric to power its 430kW liquid-cooled energy storage
systems and 320 kW solar inverter.
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Selected financial results for the quarter are shown below with comparable periods (unaudited):
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GAAP
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Non-GAAP
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(Revenue and Net Income in millions)
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Q1 2026
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Q4 2025
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Q1 2025
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Q1 2026
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Q4 2025
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Q1 2025
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Revenue
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$
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1,513.3
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$
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1,530.1
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$
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1,445.7
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$
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1,513.3
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$
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1,530.1
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$
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1,445.7
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Gross Margin
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38.5
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%
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36.0
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%
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20.3
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%
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38.5
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%
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38.2
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%
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40.0
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%
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Operating Margin
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(3.5
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)%
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13.1
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%
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(39.7
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)%
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19.1
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%
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19.8
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%
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18.3
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%
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Net Income (loss) attributable to ON Semiconductor Corporation
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$
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(33.4
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)
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$
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181.8
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$
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(486.1
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)
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$
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253.1
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$
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257.2
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$
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231.6
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Diluted Earnings (loss) Per Share
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$
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(0.08
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)
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$
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0.45
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$
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(1.15
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)
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$
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0.64
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$
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0.64
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$
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0.55
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1
Revenue Summary
(in millions)
(Unaudited)
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Quarters Ended
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Business Segment
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Q1 2026
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Q4 2025
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Q1 2025
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Sequential
Change
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Year-over-
Year Change
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PSG
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$
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736.6
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$
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724.2
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$
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645.1
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2
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%
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14
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%
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AMG
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540.4
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556.3
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566.4
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(3
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)%
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(5
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)%
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ISG
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236.3
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249.6
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234.2
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(5
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)%
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1
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%
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Total
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$
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1,513.3
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$
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1,530.1
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$
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1,445.7
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(1
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)%
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5
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%
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SECOND QUARTER 2026 OUTLOOK
The following table outlines onsemi’s projected second quarter of 2026 GAAP and non-GAAP outlook.
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Total onsemi
GAAP
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Special
Items **
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Total onsemi
Non-GAAP***
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Revenue
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$1,535 to $1,635 million
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-
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$1,535 to $1,635 million
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Gross Margin
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37.9% to 39.9%
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0.1%
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38.0% to 40.0%
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Operating Expenses
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$302 to $317 million
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$15 million
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$287 to $302 million
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Other Income and Expense (including interest), net
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($6 million)
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-
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($6 million)
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Diluted Earnings Per Share
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$0.60 to $0.72
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$0.05
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$0.65 to $0.77
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Diluted Shares Outstanding *
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401 million
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7 million
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394 million
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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.
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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.
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2
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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.
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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.
3
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.
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Krystal Heaton
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Parag Agarwal
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Director, Head of Public Relations
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Vice President - Investor Relations & Corporate Development
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onsemi
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onsemi
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(480) 242-6943
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(602) 244-3437
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Krystal.Heaton@onsemi.com
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investor@onsemi.com
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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.
4
ON SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share and percentage data)
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Quarters Ended
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||||||||||||
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April 3, 2026
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December 31,
2025
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April 4, 2025
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||||||||||
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Revenue
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$
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1,513.3
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$
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1,530.1
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$
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1,445.7
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||||||
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Cost of revenue
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930.2
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979.1
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1,151.9
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|||||||||
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Gross profit
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583.1
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551.0
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293.8
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|||||||||
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Gross margin
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38.5
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%
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36.0
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%
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20.3
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%
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||||||
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Operating expenses:
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||||||||||||
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Research and development
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144.3
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133.8
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164.1
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|||||||||
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Selling and marketing
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63.0
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61.5
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68.3
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General and administrative
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89.4
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86.0
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84.4
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Amortization of intangible assets
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10.5
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10.8
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11.4
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Restructuring, asset impairments and other, net
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329.3
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58.8
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539.3
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Total operating expenses
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636.5
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350.9
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867.5
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|||||||||
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Operating income (loss)
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(53.4
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)
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200.1
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(573.7
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)
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Other income (expense), net:
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||||||||||||
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Interest expense
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(12.7
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)
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(17.3
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)
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(18.0
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)
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Interest income
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17.7
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20.6
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26.6
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Other income
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3.8
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13.7
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4.1
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|||||||||
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Other income (expense), net
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8.8
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17.0
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12.7
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|||||||||
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Income (loss) before income taxes
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(44.6
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)
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217.1
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(561.0
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)
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|||||||
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Income tax (provision) benefit
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11.7
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(35.3
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)
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75.8
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||||||||
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Net income (loss)
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(32.9
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)
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181.8
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(485.2
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)
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|||||||
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Less: Net income attributable to non-controlling interest
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(0.5
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)
|
—
|
(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
|
|||||||||
5
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
|
$
|
12,010.8
|
$
|
12,524.1
|
$
|
13,253.9
|
||||||
|
Liabilities and Stockholders’ Equity
|
||||||||||||
|
Accounts payable
|
$
|
486.1
|
$
|
572.3
|
$
|
496.6
|
||||||
|
Accrued expenses and other current liabilities
|
698.7
|
714.9
|
781.3
|
|||||||||
|
Current portion of financing lease liabilities
|
0.5
|
0.5
|
0.4
|
|||||||||
|
Total current liabilities
|
1,185.3
|
1,287.7
|
1,278.3
|
|||||||||
|
Long-term debt
|
2,982.9
|
2,980.5
|
3,348.3
|
|||||||||
|
Deferred tax liabilities
|
46.5
|
41.7
|
45.6
|
|||||||||
|
Long-term financing lease liabilities
|
23.1
|
23.8
|
21.6
|
|||||||||
|
Other long-term liabilities
|
452.2
|
498.5
|
511.2
|
|||||||||
|
Total liabilities
|
4,690.0
|
4,832.2
|
5,205.0
|
|||||||||
|
ON Semiconductor Corporation stockholders’ equity:
|
||||||||||||
|
Common stock
|
6.3
|
6.2
|
6.2
|
|||||||||
|
Additional paid-in capital
|
5,582.5
|
5,538.6
|
5,411.4
|
|||||||||
|
Accumulated other comprehensive loss
|
(61.7
|
)
|
(55.5
|
)
|
(56.5
|
)
|
||||||
|
Accumulated earnings
|
8,208.5
|
8,241.9
|
7,634.8
|
|||||||||
|
Less: Treasury stock, at cost
|
(6,433.9
|
)
|
(6,057.9
|
)
|
(4,966.0
|
)
|
||||||
|
Total ON Semiconductor Corporation stockholders’ equity
|
7,301.7
|
7,673.3
|
8,029.9
|
|||||||||
|
Non-controlling interest
|
19.1
|
18.6
|
19.0
|
|||||||||
|
Total stockholders’ equity
|
7,320.8
|
7,691.9
|
8,048.9
|
|||||||||
|
Total liabilities and stockholders’ equity
|
$
|
12,010.8
|
$
|
12,524.1
|
$
|
13,253.9
|
||||||
6
ON SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
|
Quarters Ended
|
||||||||||||
|
April 3, 2026
|
December 31,
2025
|
April 4, 2025
|
||||||||||
|
Cash flows from operating activities:
|
||||||||||||
|
Net income (loss)
|
$
|
(32.9
|
)
|
$
|
181.8
|
$
|
(485.2
|
)
|
||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||
|
Depreciation and amortization
|
286.7
|
214.9
|
168.2
|
|||||||||
|
(Gain) loss on sale and disposal of fixed assets
|
(1.1
|
)
|
7.9
|
0.2
|
||||||||
|
Amortization of debt discount and issuance costs
|
2.9
|
2.8
|
2.9
|
|||||||||
|
Share-based compensation
|
37.3
|
37.8
|
33.9
|
|||||||||
|
Non-cash asset impairment charges
|
147.0
|
8.1
|
431.5
|
|||||||||
|
Change in deferred tax balances
|
2.7
|
(80.6
|
)
|
(13.7
|
)
|
|||||||
|
Other
|
(2.2
|
)
|
(2.8
|
)
|
1.6
|
|||||||
|
Changes in assets and liabilities
|
(201.3
|
)
|
184.6
|
462.9
|
||||||||
|
Net cash provided by operating activities
|
239.1
|
554.5
|
602.3
|
|||||||||
|
Cash flows from investing activities:
|
||||||||||||
|
Payments for acquisition of property, plant, and equipment
|
(21.9
|
)
|
(69.1
|
)
|
(147.6
|
)
|
||||||
|
Proceeds from sale of property, plant and equipment
|
1.0
|
25.4
|
0.2
|
|||||||||
|
Purchase of short-term investments
|
(300.0
|
)
|
(250.0
|
)
|
(250.0
|
)
|
||||||
|
Proceeds from the maturity of short-term investments
|
300.0
|
250.0
|
300.0
|
|||||||||
|
Payments for acquisition of a business, net of cash acquired
|
—
|
(7.0
|
)
|
(117.5
|
)
|
|||||||
|
Other
|
4.2
|
—
|
—
|
|||||||||
|
Net cash used in investing activities
|
(16.7
|
)
|
(50.7
|
)
|
(214.9
|
)
|
||||||
|
Cash flows from financing activities:
|
||||||||||||
|
Proceeds for the issuance of common stock under the ESPP
|
6.7
|
5.5
|
5.3
|
|||||||||
|
Payment of tax withholding for RSUs
|
(26.9
|
)
|
(1.6
|
)
|
(22.4
|
)
|
||||||
|
Repurchase of common stock
|
(345.7
|
)
|
(450.2
|
)
|
(300.1
|
)
|
||||||
|
Repayment of borrowings under debt agreements
|
—
|
(375.0
|
)
|
—
|
||||||||
|
Payment of finance lease obligations
|
(0.1
|
)
|
(0.5
|
)
|
(0.4
|
)
|
||||||
|
Other
|
—
|
(2.1
|
)
|
—
|
||||||||
|
Net cash used in financing activities
|
(366.0
|
)
|
(823.9
|
)
|
(317.6
|
)
|
||||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(0.3
|
)
|
(4.9
|
)
|
2.0
|
|||||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(143.9
|
)
|
(325.0
|
)
|
71.8
|
|||||||
|
Beginning cash, cash equivalents and restricted cash
|
2,149.0
|
2,474.0
|
2,693.4
|
|||||||||
|
Ending cash, cash equivalents and restricted cash
|
$
|
2,005.1
|
$
|
2,149.0
|
$
|
2,765.2
|
||||||
7
ON SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES
(in millions, except per share and percentage data)
|
Quarters Ended
|
|||||||||||||||
|
April 3, 2026
|
December 31,
2025
|
April 4, 2025
|
|||||||||||||
|
Reconciliation of GAAP to non-GAAP gross profit:
|
|||||||||||||||
|
GAAP gross profit
|
$
|
583.1
|
$
|
551.0
|
$
|
293.8
|
|||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring-related inventory and other charges
|
(1.0
|
)
|
32.1
|
283.4
|
|||||||||
|
b
|
)
|
Amortization of intangible assets
|
1.2
|
1.2
|
1.3
|
||||||||||
|
c
|
)
|
Amortization of fair market value step-up of inventory
|
—
|
0.6
|
—
|
||||||||||
|
Total special items
|
0.2
|
33.9
|
284.7
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
583.3
|
$
|
584.9
|
$
|
578.5
|
|||||||||
|
Reconciliation of GAAP to non-GAAP gross margin:
|
|||||||||||||||
|
GAAP gross margin
|
38.5
|
%
|
36.0
|
%
|
20.3
|
%
|
|||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring-related inventory and other charges
|
(0.1
|
)%
|
2.1
|
%
|
19.6
|
%
|
|||||||
|
b
|
)
|
Amortization of intangible assets
|
0.1
|
%
|
0.1
|
%
|
0.1
|
%
|
|||||||
|
Total special items
|
—
|
%
|
2.2
|
%
|
19.7
|
%
|
|||||||||
|
Non-GAAP gross margin
|
38.5
|
%
|
38.2
|
%
|
40.0
|
%
|
|||||||||
|
Reconciliation of GAAP to non-GAAP operating expenses:
|
|||||||||||||||
|
GAAP operating expenses
|
$
|
636.5
|
$
|
350.9
|
$
|
867.5
|
|||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Amortization of intangible assets
|
(10.5
|
)
|
(10.8
|
)
|
(11.4
|
)
|
|||||||
|
b
|
)
|
Restructuring, asset impairments and other charges, net
|
(329.3
|
)
|
(58.8
|
)
|
(539.3
|
)
|
|||||||
|
c
|
)
|
Third-party acquisition and divestiture-related costs
|
(1.4
|
)
|
(0.6
|
)
|
(2.3
|
)
|
|||||||
|
d
|
)
|
Adjustments to contingent consideration
|
(1.6
|
)
|
1.3
|
—
|
|||||||||
|
Total special items
|
(342.8
|
)
|
(68.9
|
)
|
(553.0
|
)
|
|||||||||
|
Non-GAAP operating expenses
|
$
|
293.7
|
$
|
282.0
|
$
|
314.5
|
|||||||||
|
Reconciliation of GAAP to non-GAAP operating income:
|
|||||||||||||||
|
GAAP operating income (loss)
|
$
|
(53.4
|
)
|
$
|
200.1
|
$
|
(573.7
|
)
|
|||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring-related inventory and other charges
|
(1.0
|
)
|
32.1
|
283.4
|
|||||||||
|
b
|
)
|
Amortization of intangible assets
|
11.7
|
12.0
|
12.7
|
||||||||||
|
c
|
)
|
Restructuring, asset impairments and other charges, net
|
329.3
|
58.8
|
539.3
|
||||||||||
|
d
|
)
|
Third-party acquisition and divestiture-related costs
|
1.4
|
0.6
|
2.3
|
||||||||||
|
e
|
)
|
Amortization of fair market value step-up of inventory
|
—
|
0.6
|
—
|
||||||||||
|
f
|
)
|
Adjustments to contingent consideration
|
1.6
|
(1.3
|
)
|
—
|
|||||||||
|
Total special items
|
343.0
|
102.8
|
837.7
|
||||||||||||
|
Non-GAAP operating income
|
$
|
289.6
|
$
|
302.9
|
$
|
264.0
|
|||||||||
|
Reconciliation of GAAP to non-GAAP operating margin (operating income / revenue):
|
|||||||||||||||
|
GAAP operating margin
|
(3.5
|
)%
|
13.1
|
%
|
(39.7
|
)%
|
|||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring related inventory and other charges
|
(0.1
|
)%
|
2.1
|
%
|
19.6
|
%
|
|||||||
|
b
|
)
|
Amortization of intangible assets
|
0.8
|
%
|
0.8
|
%
|
0.9
|
%
|
|||||||
|
c
|
)
|
Restructuring, asset impairments and other charges, net
|
21.8
|
%
|
3.8
|
%
|
37.3
|
%
|
|||||||
|
d
|
)
|
Third-party acquisition and divestiture-related costs
|
0.1
|
%
|
—
|
%
|
0.2
|
%
|
|||||||
|
e
|
)
|
Amortization of fair market value step-up of inventory
|
—
|
%
|
—
|
%
|
—
|
%
|
|||||||
|
f
|
)
|
Adjustments to contingent consideration
|
0.1
|
%
|
—
|
%
|
—
|
%
|
|||||||
|
Total special items
|
22.7
|
%
|
6.7
|
%
|
58.0
|
%
|
|||||||||
|
Non-GAAP operating margin
|
19.1
|
%
|
19.8
|
%
|
18.3
|
%
|
|||||||||
8
ON SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (Continued)
(in millions, except per share and percentage data)
|
Quarters Ended
|
|||||||||||||||
|
April 3, 2026
|
December 31,
2025
|
April 4, 2025
|
|||||||||||||
|
Reconciliation of GAAP to non-GAAP income before income taxes:
|
|||||||||||||||
|
GAAP income (loss) before income taxes
|
$
|
(44.6
|
)
|
$
|
217.1
|
$
|
(561.0
|
)
|
|||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring-related inventory and other charges
|
(1.0
|
)
|
32.1
|
283.4
|
|||||||||
|
b
|
)
|
Amortization of intangible assets
|
11.7
|
12.0
|
12.7
|
||||||||||
|
c
|
)
|
Restructuring, asset impairments and other charges, net
|
329.3
|
58.8
|
539.3
|
||||||||||
|
d
|
)
|
Third-party acquisition and divestiture-related costs
|
1.4
|
0.6
|
2.3
|
||||||||||
|
e
|
)
|
Amortization of fair market value step-up of inventory
|
—
|
0.6
|
—
|
||||||||||
|
f
|
)
|
Adjustments to contingent consideration
|
1.6
|
(1.3
|
)
|
—
|
|||||||||
|
g
|
)
|
Actuarial gains on pension plans and other pension benefits
|
—
|
(12.9
|
)
|
—
|
|||||||||
|
Total special items
|
343.0
|
89.9
|
837.7
|
||||||||||||
|
Non-GAAP income before income taxes
|
$
|
298.4
|
$
|
307.0
|
$
|
276.7
|
|||||||||
|
Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation:
|
|||||||||||||||
|
GAAP net income (loss) attributable to ON Semiconductor Corporation
|
$
|
(33.4
|
)
|
$
|
181.8
|
$
|
(486.1
|
)
|
|||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Restructuring-related inventory and other charges
|
(1.0
|
)
|
32.1
|
283.4
|
|||||||||
|
b
|
)
|
Amortization of intangible assets
|
11.7
|
12.0
|
12.7
|
||||||||||
|
c
|
)
|
Restructuring, asset impairments and other charges, net
|
329.3
|
58.8
|
539.3
|
||||||||||
|
d
|
)
|
Third-party acquisition and divestiture-related costs
|
1.4
|
0.6
|
2.3
|
||||||||||
|
e
|
)
|
Amortization of fair market value step-up of inventory
|
—
|
0.6
|
—
|
||||||||||
|
f
|
)
|
Adjustments to contingent consideration
|
1.6
|
(1.3
|
)
|
—
|
|||||||||
|
g
|
)
|
Actuarial gains on pension plans and other pension benefits
|
—
|
(12.9
|
)
|
—
|
|||||||||
|
h
|
)
|
Adjustment to Income taxes
|
(56.5
|
)
|
(14.5
|
)
|
(120.0
|
)
|
|||||||
|
Total special items
|
286.5
|
75.4
|
717.7
|
||||||||||||
|
Non-GAAP net income attributable to ON Semiconductor Corporation
|
$
|
253.1
|
$
|
257.2
|
$
|
231.6
|
|||||||||
|
Reconciliation of GAAP to non-GAAP diluted shares outstanding:
|
|||||||||||||||
|
GAAP diluted shares outstanding
|
394.1
|
402.3
|
421.3
|
||||||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Add: dilutive shares attributable to share-based awards
|
1.9
|
—
|
0.4
|
||||||||||
|
Total special items
|
1.9
|
—
|
0.4
|
||||||||||||
|
Non-GAAP diluted shares outstanding
|
396.0
|
402.3
|
421.7
|
||||||||||||
|
Non-GAAP diluted earnings per share:
|
|||||||||||||||
|
Non-GAAP net income attributable to ON Semiconductor Corporation
|
$
|
253.1
|
$
|
257.2
|
$
|
231.6
|
|||||||||
|
Non-GAAP diluted shares outstanding
|
396.0
|
402.3
|
421.7
|
||||||||||||
|
Non-GAAP diluted earnings per share
|
$
|
0.64
|
$
|
0.64
|
$
|
0.55
|
|||||||||
|
Reconciliation of net cash provided by operating activities to free cash flow:
|
|||||||||||||||
|
Net cash provided by operating activities
|
$
|
239.1
|
$
|
554.5
|
$
|
602.3
|
|||||||||
|
Special items:
|
|||||||||||||||
|
a
|
)
|
Payments for acquisition of property, plant and equipment
|
(21.9
|
)
|
(69.1
|
)
|
(147.6
|
)
|
|||||||
|
Total special items
|
(21.9
|
)
|
(69.1
|
)
|
(147.6
|
)
|
|||||||||
|
Free cash flow
|
$
|
217.2
|
$
|
485.4
|
$
|
454.7
|
|||||||||
Certain of the amounts in the above tables may not total due to rounding of individual amounts.
9
ON SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (Continued)
(in millions, except per share and percentage data)
FREE CASH FLOW
|
Quarters Ended
|
||||||||||||||||||||
|
July 4, 2024
|
October 3,
2025
|
December 31,
2025
|
April 3, 2026
|
Last Twelve
Months
|
||||||||||||||||
|
Net cash provided by operating activities
|
$
|
184.3
|
$
|
418.7
|
$
|
554.5
|
$
|
239.1
|
$
|
1,396.6
|
||||||||||
|
Payments for acquisition of property, plant and equipment
|
(78.2
|
)
|
(46.3
|
)
|
(69.1
|
)
|
(21.9
|
)
|
(215.5
|
)
|
||||||||||
|
Free cash flow
|
$
|
106.1
|
$
|
372.4
|
$
|
485.4
|
$
|
217.2
|
$
|
1,181.1
|
||||||||||
|
Revenue
|
$
|
1,468.7
|
$
|
1,550.9
|
$
|
1,530.1
|
$
|
1,513.3
|
$
|
6,063.0
|
||||||||||
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
|
||||||||||||
|
April 3, 2026
|
December 31,
2025
|
April 4, 2025
|
||||||||||
|
Cost of revenue
|
$
|
6.4
|
$
|
7.1
|
$
|
6.0
|
||||||
|
Research and development
|
7.3
|
7.6
|
6.3
|
|||||||||
|
Selling and marketing
|
5.1
|
5.5
|
4.7
|
|||||||||
|
General and administrative
|
18.5
|
17.6
|
16.9
|
|||||||||
|
Total share-based compensation
|
$
|
37.3
|
$
|
37.8
|
$
|
33.9
|
||||||
SUPPLEMENTAL FINANCIAL DATA
|
Quarters Ended
|
||||||||||||
|
April 3, 2026
|
December 31,
2025
|
April 4, 2025
|
||||||||||
|
Net cash provided by operating activities
|
$
|
239.1
|
$
|
554.5
|
$
|
602.3
|
||||||
|
Free cash flow
|
$
|
217.2
|
$
|
485.4
|
$
|
454.7
|
||||||
|
Cash paid for income taxes
|
$
|
46.6
|
$
|
63.7
|
$
|
21.5
|
||||||
|
Depreciation and amortization (1)
|
$
|
286.7
|
$
|
214.9
|
$
|
168.2
|
||||||
|
Less: Amortization of intangible assets
|
11.7
|
12.0
|
12.7
|
|||||||||
|
Depreciation and amortization (excl. amortization of intangible assets) (1)
|
$
|
275.0
|
$
|
202.9
|
$
|
155.5
|
||||||
(1) Includes $136.5 million, $70.6 million and $12.5 million of accelerated depreciation of PP&E and accelerated amortization of ROU assets related to
Restructuring programs for the quarters ended April 3, 2026, December 31, 2025 and April 4, 2025, respectively.
10
NON-GAAP MEASURES
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 2024 and 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.
11
NON-GAAP MEASURES (Continued)
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 and $103.87 for the 0.50% Notes, the non-GAAP diluted
share count includes the anti-dilutive impact of the Company’s hedge transactions issued 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 are included in the diluted shares outstanding.
12
FAQ
How did onsemi (ON) perform financially in Q1 2026?
onsemi generated $1.5133 billion in Q1 2026 revenue, up 5% year over year. GAAP results showed a $33.4 million net loss, but non-GAAP net income was $253.1 million with diluted EPS of $0.64, reflecting stronger underlying performance.
Why did onsemi report a GAAP net loss in Q1 2026?
onsemi’s GAAP net loss of $33.4 million in Q1 2026 mainly reflects $329.3 million of restructuring, asset impairments and other charges. Excluding these and other special items, non-GAAP net income was $253.1 million, indicating profitable core operations.
What guidance did onsemi provide for Q2 2026 revenue and earnings?
For Q2 2026, onsemi projects revenue of $1.535 to $1.635 billion. GAAP diluted EPS is expected between $0.60 and $0.72, while non-GAAP diluted EPS is guided to $0.65 to $0.77, assuming 394 million non-GAAP diluted shares outstanding.
How strong was onsemi’s cash flow and free cash flow in Q1 2026?
onsemi reported $239.1 million in net cash provided by operating activities in Q1 2026. After $21.9 million of capital expenditures, free cash flow was $217.2 million, supporting continued investment and substantial share repurchases during the quarter.
How did onsemi’s business segments perform in Q1 2026?
In Q1 2026, PSG revenue was $736.6 million (up 14% year over year), AMG revenue was $540.4 million (down 5%), and ISG revenue was $236.3 million (up 1%). Total company revenue reached $1.5133 billion, a 5% year-over-year increase.
What is onsemi’s gross margin and operating margin trend?
Q1 2026 GAAP gross margin improved to 38.5%, from 20.3% a year earlier. Non-GAAP operating margin was 19.1%, compared with 18.3% in Q1 2025, indicating better efficiency even as the company absorbed restructuring-related disruption.