Onsemia Q2 results beat on AI data center demand, shares up
Onsemia Q2 results beat on AI data center demand, shares up
Overview
US chipmaker's Q2 revenue rose 9% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased $332 mln in shares during the quarter
Shares of the company were up about 4.5% in extended trading
Outlook
ON Semiconductor sees Q3 2026 revenue between $1.65 bln and $1.75 bln
Company expects Q3 2026 non-GAAP gross margin of 40.0% to 42.0%
ON Semiconductor projects Q3 2026 non-GAAP diluted EPS of $0.81 to $0.93
Result Drivers
AI DATA CENTER DEMAND - Co said strengthening demand for AI-driven applications, especially in data centers, was a key driver of Q2 results
CUSTOMER ADOPTION OF NEW SOLUTIONS - Co cited growing adoption of differentiated products, including Treo and high voltage power solutions, as supporting revenue growth
GROSS MARGIN EXPANSION AND COST CONTROL - Co attributed faster EPS growth to gross margin expansion and disciplined cost management
Company press release: ID:nGNX7l0h3h
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $1.60 bln | $1.59 bln (26 Analysts) |
Q2 Adjusted EPS | Beat | $0.74 | $0.71 (27 Analysts) |
Q2 EPS |
| $0.56 |
|
Q2 Net Income |
| $227.50 mln |
|
Q2 Adjusted Gross Margin |
| 39.3% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 19 "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 $110.00, about 34.8% above its July 31 closing price of $81.61
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 31 three months ago
Reuters Recommended Reads
July 31 - FTC approves IonQ acquisition of SkyWater semiconductor foundry
Aug 3 - Alibaba unveils its largest AI model yet, DeepSeek's latest model is ultra-low cost
Aug 3 - China steps up protection for chip designs in revised regulations
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(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.)