onsemi (NASDAQ:ON) Releases Quarterly Earnings Results

onsemi (NASDAQ:ON) released its earnings results on Monday. The semiconductor company reported $0.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.72 by $0.02, Zacks reports. onsemi had a return on equity of 13.87% and a net margin of 10.17%.The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the previous year, the company posted $0.53 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. onsemi updated its Q3 2026 guidance to 0.810-0.930 EPS.

Here are the key takeaways from onsemi’s conference call:

• Q2 results exceeded guidance: Revenue reached $1.6 billion, non-GAAP gross margin was 39.3%, and non-GAAP EPS was $0.74. Free cash flow rose to $425 million, while the company returned $332 million through share repurchases.
• AI data center momentum accelerated: ON Semiconductor now expects AI data center revenue to more than double in 2026, supported by wins with Nvidia’s MGX ecosystem, AWS-related platforms, and China’s Great Wall. The company is expanding content across the power chain as demand shifts toward 800-volt DC architectures.
• Growth opportunities broadened across energy and automotive: Energy storage system revenue is expected to increase approximately 40% in 2026, while China automotive revenue grew 13% in the first half despite lower vehicle sales. China automotive silicon carbide revenue is projected to rise 60% to 70% year over year, driven by market-share gains and new vehicle programs.
• Third-quarter outlook implies continued operating leverage: Revenue is forecast at $1.65 billion to $1.75 billion, with non-GAAP gross margin of 40% to 42% and EPS of $0.81 to $0.93. Management expects utilization-related margin benefits to continue, although the full effect may emerge with a lag.
• Supply constraints and the Synaptics acquisition remain key developments: Lead times have extended, orders within lead time are increasing, and the company is implementing price increases to offset higher input costs. ON Semiconductor expects its acquisition of Synaptics to close in mid-2027, subject to customary approvals.

onsemi Price Performance

Shares of onsemi stock traded down $3.57 during trading on Wednesday, hitting $77.21. 5,568,344 shares of the company were exchanged, compared to its average volume of 10,701,981. onsemi has a fifty-two week low of $44.56 and a fifty-two week high of $134.92. The company has a quick ratio of 3.14, a current ratio of 4.87 and a debt-to-equity ratio of 0.41. The firm has a 50 day moving average price of $103.36 and a 200 day moving average price of $85.21. The stock has a market capitalization of $30.26 billion, a price-to-earnings ratio of 54.76, a P/E/G ratio of 0.89 and a beta of 2.03.

Hedge Funds Weigh In On onsemi

A number of institutional investors have recently made changes to their positions in the stock. DV Equities LLC purchased a new stake in onsemi during the 4th quarter worth about $30,000. Darwin Wealth Management LLC acquired a new stake in shares of onsemi during the 2nd quarter worth about $32,000. Summit Securities Group LLC boosted its stake in shares of onsemi by 346.3% during the 4th quarter. Summit Securities Group LLC now owns 598 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 464 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new stake in shares of onsemi during the fourth quarter worth about $46,000. Finally, Geneos Wealth Management Inc. grew its holdings in shares of onsemi by 61.2% during the first quarter. Geneos Wealth Management Inc. now owns 1,335 shares of the semiconductor company’s stock worth $54,000 after buying an additional 507 shares in the last quarter. 97.70% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Quarterly results exceeded expectations: Second-quarter revenue rose 9% year over year to approximately $1.60 billion, while adjusted EPS of $0.74 topped the roughly $0.72 consensus estimate. GAAP diluted EPS was $0.56, compared with $0.53 a year earlier. onsemi Reports Second Quarter 2026 Results
• Positive Sentiment: AI and data-center momentum strengthened: Management expects AI data-center revenue to more than double in 2026, supported by demand for high-voltage power solutions and other AI-related products. The company also cited higher factory utilization and a richer product mix as drivers of margin expansion. ON Q2 Earnings Call Signals AI-Led Demand and Margin Lift
• Positive Sentiment: Cash generation and shareholder returns improved: Operating cash flow increased sharply, free cash flow reached approximately $425 million, and onsemi repurchased about $332 million of stock during the quarter. onsemi Q2 revenue rises 9% to $1.604 billion
• Neutral Sentiment: Third-quarter outlook was broadly encouraging: Revenue guidance was approximately $1.65 billion to $1.75 billion, with adjusted EPS guidance of $0.81 to $0.93. The midpoint was slightly above revenue expectations, but EPS guidance was close to consensus, limiting the potential for a larger upside reaction.
• Negative Sentiment: Near-term execution risks remain: onsemi said it is prioritizing AI data-center shipments over some automotive demand because of capacity constraints. That trade-off may pressure its traditional automotive business and raises questions about how quickly supply can be expanded. onsemi shifts capacity to AI data centers
• Negative Sentiment: Analyst targets were reduced despite continued bullish ratings: Needham, Wells Fargo, Mizuho and B. Riley lowered their targets, while Goldman Sachs maintained a Hold rating. The revisions suggest investors may already be pricing in much of the AI recovery, particularly after ON’s strong prior rally and elevated valuation.

Analyst Ratings Changes

Several brokerages have issued reports on ON. Barclays boosted their price objective on shares of onsemi from $75.00 to $100.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Susquehanna raised their price objective on shares of onsemi from $140.00 to $150.00 and gave the company a “positive” rating in a research report on Thursday, July 9th. Morgan Stanley increased their target price on onsemi from $85.00 to $87.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 5th. TD Cowen reduced their price target on onsemi from $110.00 to $95.00 and set a “buy” rating for the company in a report on Monday, July 13th. Finally, Zacks Research lowered onsemi from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Fourteen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $101.54.

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.