onsemi Announces First Quarter 2026 Results
onsemi announced its first-quarter 2026 financial results, exceeding guidance with $1.513 billion in revenue. The company reported over 30% sequential growth in its AI data center business and expressed optimism for long-term opportunities in automotive, industrial, and AI data center sectors.
📋 Article Processing Timeline
- 📰 Published: May 8, 2026 at 23:00
- 🔍 Collected: May 8, 2026 at 14:31
- 🤖 AI Analyzed: May 8, 2026 at 14:54 (22 min after Collected)
onsemi (Headquarters: Scottsdale, Arizona, USA, Nasdaq: ON) today announced its financial results for the first quarter of 2026.
Key Highlights:
- Revenue of $1.513 billion exceeded the midpoint of the company's guidance
- GAAP and non-GAAP gross margins were both 38.5%
- GAAP operating margin was (3.5)%, non-GAAP operating margin was 19.1%
- GAAP diluted loss per share was ($0.08), non-GAAP diluted earnings per share was $0.64
- Share repurchases totaled $346 million, representing approximately 160% of free cash flow
Hassane El-Khoury, President and CEO of onsemi, commented:
"Demand remained robust throughout the quarter, and our performance exceeded expectations as we emerged from the bottom of the business cycle and entered a recovery trajectory. Our AI data center business is gaining momentum, achieving over 30% sequential growth. Looking ahead, we are excited about the strong foundation of our business and the long-term opportunities driven by increasing semiconductor demand in the automotive, industrial, and AI data center segments."
Thad Trent, EVP and CFO of onsemi, stated:
"Operational improvements resulted in a 10% year-over-year increase in operating income, delivering strong operating leverage at twice the rate of revenue growth. Our robust portfolio and optimized cost structure position us to further enhance margins and profitability as market conditions continue to improve. We will continue to generate strong free cash flow and return capital to shareholders. We remain focused on continuing to create long-term value for our shareholders through a disciplined approach."
Business Highlights:
- AI data center revenue more than doubled year-over-year, driven by expanded adoption across the power tree by multiple chip vendors and leading hyperscalers.
- onsemi's EliteSiC leads the industry in transitioning to 900V EV architectures, enabling extended range and faster charging, with expanded collaborations with Geely and NIO.
- Began mass production shipments of Treo-based 10BASE-T1S Ethernet solutions, supporting next-generation zone architectures at major North American OEMs and accelerating the momentum of software-defined vehicles (SDVs).
- Announced new design wins for Sineng Electric's 430 kW liquid-cooled energy storage system and 320 kW solar inverter power supplies.
Teleconference
onsemi will host a conference call for the financial community at 5:00 PM US Eastern Time on May 4, 2026, to discuss this announcement and its first-quarter 2026 financial results. A live audio webcast of the conference call will be available on onsemi's official investor relations website (http://www.onsemi.com). A replay of the webcast will be available on the same site approximately one hour after the live broadcast concludes and will be provided for approximately 30 days. Investors and interested parties can also register in advance to participate in the conference call here.
First Quarter Results
Revenue Summary
Second Quarter 2026 Outlook
* The number of diluted shares outstanding may fluctuate due to the vesting of restricted stock units, an increase in diluted shares from the company's convertible senior subordinated notes, repurchases and issuance of stock and convertible notes, and sales of treasury stock. For periods where the average stock price per share exceeds $52.97 for 0% bonds and $103.87 for 0.50% bonds, non-GAAP diluted shares and non-GAAP diluted net income per share include the impact of dilution from the company's hedging transactions issued concurrently with the 0% bonds and 0.50% bonds, respectively. When the average stock price per share is between $52.97 and $74.34 for 0% bonds, and between $103.87 and $156.78 for 0.50% bonds, the company's hedging transactions offset the dilutive impact of the 0% bonds and 0.50% bonds, respectively. For periods where the quarterly average stock price exceeds $74.34 for 0% bonds and $156.78 for 0.50% bonds, the dilutive impact of warrants issued concurrently with these bonds is also included in the diluted shares outstanding. GAAP and non-GAAP diluted shares outstanding are based on the company's average stock price for the previous quarter.
Key Highlights:
- Revenue of $1.513 billion exceeded the midpoint of the company's guidance
- GAAP and non-GAAP gross margins were both 38.5%
- GAAP operating margin was (3.5)%, non-GAAP operating margin was 19.1%
- GAAP diluted loss per share was ($0.08), non-GAAP diluted earnings per share was $0.64
- Share repurchases totaled $346 million, representing approximately 160% of free cash flow
Hassane El-Khoury, President and CEO of onsemi, commented:
"Demand remained robust throughout the quarter, and our performance exceeded expectations as we emerged from the bottom of the business cycle and entered a recovery trajectory. Our AI data center business is gaining momentum, achieving over 30% sequential growth. Looking ahead, we are excited about the strong foundation of our business and the long-term opportunities driven by increasing semiconductor demand in the automotive, industrial, and AI data center segments."
Thad Trent, EVP and CFO of onsemi, stated:
"Operational improvements resulted in a 10% year-over-year increase in operating income, delivering strong operating leverage at twice the rate of revenue growth. Our robust portfolio and optimized cost structure position us to further enhance margins and profitability as market conditions continue to improve. We will continue to generate strong free cash flow and return capital to shareholders. We remain focused on continuing to create long-term value for our shareholders through a disciplined approach."
Business Highlights:
- AI data center revenue more than doubled year-over-year, driven by expanded adoption across the power tree by multiple chip vendors and leading hyperscalers.
- onsemi's EliteSiC leads the industry in transitioning to 900V EV architectures, enabling extended range and faster charging, with expanded collaborations with Geely and NIO.
- Began mass production shipments of Treo-based 10BASE-T1S Ethernet solutions, supporting next-generation zone architectures at major North American OEMs and accelerating the momentum of software-defined vehicles (SDVs).
- Announced new design wins for Sineng Electric's 430 kW liquid-cooled energy storage system and 320 kW solar inverter power supplies.
Teleconference
onsemi will host a conference call for the financial community at 5:00 PM US Eastern Time on May 4, 2026, to discuss this announcement and its first-quarter 2026 financial results. A live audio webcast of the conference call will be available on onsemi's official investor relations website (http://www.onsemi.com). A replay of the webcast will be available on the same site approximately one hour after the live broadcast concludes and will be provided for approximately 30 days. Investors and interested parties can also register in advance to participate in the conference call here.
First Quarter Results
Revenue Summary
Second Quarter 2026 Outlook
* The number of diluted shares outstanding may fluctuate due to the vesting of restricted stock units, an increase in diluted shares from the company's convertible senior subordinated notes, repurchases and issuance of stock and convertible notes, and sales of treasury stock. For periods where the average stock price per share exceeds $52.97 for 0% bonds and $103.87 for 0.50% bonds, non-GAAP diluted shares and non-GAAP diluted net income per share include the impact of dilution from the company's hedging transactions issued concurrently with the 0% bonds and 0.50% bonds, respectively. When the average stock price per share is between $52.97 and $74.34 for 0% bonds, and between $103.87 and $156.78 for 0.50% bonds, the company's hedging transactions offset the dilutive impact of the 0% bonds and 0.50% bonds, respectively. For periods where the quarterly average stock price exceeds $74.34 for 0% bonds and $156.78 for 0.50% bonds, the dilutive impact of warrants issued concurrently with these bonds is also included in the diluted shares outstanding. GAAP and non-GAAP diluted shares outstanding are based on the company's average stock price for the previous quarter.