onsemi Q1 revenue beats analyst estimates on AI data center growth

ON Semiconductor

04/05/2026 21:18

Overview

US semiconductor maker's Q1 revenue rose 5%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company repurchased $346 mln in shares, about 160% of free cash flow

Outlook

onsemi expects Q2 revenue between $1.54 bln and $1.64 bln

Company sees Q2 non-GAAP diluted EPS of $0.65 to $0.77

onsemi forecasts Q2 non-GAAP gross margin of 38.0% to 40.0%

Result Drivers

AI DATA CENTER GROWTH - Co said AI data center revenue more than doubled year-over-year due to broader adoption across the power tree with multiple chip vendors and hyperscalers

OPERATIONAL IMPROVEMENTS - Co said operational improvements delivered strong operating leverage and a 10% year-over-year increase in operating income, outpacing revenue growth by 2x, per CFO Thad Trent

AUTOMOTIVE AND INDUSTRIAL DEMAND - Co highlighted increasing semiconductor content in automotive, industrial and AI data center applications as long-term growth drivers

Company press release: ID:nGNX70g0jZ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.51 bln
$1.49 bln (28 Analysts)
Q1 Adjusted EPS
Beat
$0.64
$0.60 (30 Analysts)
Q1 EPS
-$0.08
Q1 Net Income
-$32.90 mln
Q1 Adjusted Gross Margin
38.50%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 20 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for ON Semiconductor Corp is $72.56, about 29.6% below its May 1 closing price of $103.03

The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)