ON Semiconductor Corporation (ON) Earnings Call Transcripts

ON Semiconductor Corporation's Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, ON Semiconductor Corporation (ON:US) reported revenue of $1.6 billion, exceeding the midpoint of guidance and reflecting a 9% year-over-year increase. Non-GAAP diluted earnings per share (EPS) reached $0.74, marking a significant growth rate of approximately 4x faster than revenue. Management raised guidance for AI data center revenue, now expected to more than double compared to 2025, driven by robust demand and strategic wins in the sector. The company also highlighted a strong demand environment across automotive and industrial segments, with particular strength in China, while maintaining a disciplined approach to inventory management.

Reported metrics

Guidance from management

Management expects Q3 revenue to range between $1.65 billion and $1.75 billion, with non-GAAP EPS projected between $0.81 and $0.93, indicating confidence in ongoing demand recovery and operational leverage.

What management said

Yes. The math is 25 basis points to 30 basis points of gross margin improvement for every point of utilization. So as we look into Q4, yes, you should expect a margin increase, all things being equal, that's assuming a consistent mix, those types of things. Now again, we had a richer mix here in Q2. So just keep that in mind. We saw that coming. But yes, we will see additional margin expansion in Q4.

Yes. The exits are done. So the $35 million was the Q2 impact. So if you take what we did for Q1, Q2 and you annualize it, you get to roughly about $300 million for the year because that doesn't -- obviously, those don't repeat in Q3 and Q4. So the exits are behind us now. We won't be talking about that going forward. It was $35 million for the quarter, and that's it for the year. And that really, if you go back to w...

What analysts pressed on

Analysts expressed concerns regarding the automotive segment's sequential decline and the impact of prioritizing AI data center shipments on other business lines. There were also inquiries about the sustainability of gross margin improvements amidst rising input costs and supply chain constraints.

Main topics on the call

• AI Data Center Growth — Management indicated that AI data center revenue is expected to more than double in 2026, driven by 'stronger demand' and 'broader customer wins'. This segment is now the fastest-growing market for ON Semiconductor.
• Automotive Segment Performance — Automotive revenue was $781 million, showing a 7% year-over-year growth despite a 2% sequential decline. Management noted 'expanding content per vehicle' and market share gains in China, particularly with silicon carbide...
• Gross Margin Expansion — Non-GAAP gross margin increased to 39.3%, an 80 basis point improvement sequentially. Management attributed this to improved manufacturing performance and a favorable mix, stating that 'the earnings power of our focused ...
• Free Cash Flow Generation — ON Semiconductor generated $425 million in free cash flow during the quarter, nearly quadrupling from prior periods. This reflects the company's strong operational efficiency and commitment to returning capital to shareh...

Read the full ON Semiconductor Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 87 ON Semiconductor Corporation earnings call transcripts on record, spanning January 7, 2020 to August 3, 2026. Based on this history, ON Semiconductor Corporation reports quarterly. The most recent call on file is dated August 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ON

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Calls on record

87

First call

January 7, 2020

Most recent

August 3, 2026

Reporting cadence

quarterly