The strong beat and raised guidance, particularly the AI data center doubling commentary and PSG segment acceleration, suggest the cyclical recovery thesis is playing out. Watch for continued PSG momentum and margin expansion in Q3; the stock should re-rate higher if guidance is sustained.
Price Chart
Executive Summary
ON Semiconductor reported Q2 2026 revenue of $1.604B (+9% YoY) and non-GAAP EPS of $0.74, beating consensus estimates of $0.72 EPS on $1.59B revenue. The beat was driven by 19% YoY growth in the Power Solutions Group (PSG) segment, AI data center revenue expected to more than double in 2026, and strong operating leverage with non-GAAP operating margin expanding 350bps YoY to 20.8%. Guidance for Q3 2026 revenue of $1.65-1.75B and non-GAAP EPS of $0.81-0.93 was above consensus, signaling continued momentum.
Key Financial Metrics
Key Facts
- Revenue of $1.604B (+9% YoY) beat consensus of $1.59B
- Non-GAAP EPS of $0.74 beat consensus of $0.72 (+2.8%)
- PSG segment revenue grew 19% YoY to $829M
- Non-GAAP operating margin expanded to 20.8% from 17.3% YoY
- Free cash flow of $425.4M quadrupled YoY from $106.1M
- Q3 2026 guidance: revenue $1.65-1.75B, non-GAAP EPS $0.81-0.93, both above consensus
- AI data center revenue expected to more than double in 2026
- Share repurchases of $332M in Q2, YTD returns ~105% of FCF
Financial Impact
Q2 revenue beat consensus by ~$14M (0.9%), non-GAAP EPS beat by $0.02 (2.8%). Q3 guidance midpoint $1.70B revenue and $0.87 EPS are above consensus of $1.67B and $0.82.
Risk Factors
- AMG segment revenue declined 2% YoY, indicating ongoing weakness in automotive end-markets
- GAAP operating income included $41.2M in restructuring charges; elevated debt of $4.46B post-convertible note issuance adds financial leverage risk
- Historical calibration shows past bullish calls on ON have underperformed at T+20 (avg alpha -2.07%), suggesting the market may already price in recovery
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-030989 |
| Document: ef20079200_8k.htm | 0001140361-26-030989 |
| Document: 0001140361-26-030989-index-headers.html | 0001140361-26-030989 |
| Document: 0001140361-26-030989-index.html | 0001140361-26-030989 |
| Document: 0001140361-26-030989.txt | 0001140361-26-030989 |
| 8-K Data (Synthetic) | 0001140361-26-030989 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | S-4 | $74.21 $71.72 | ▼ −3.36% | ▼ −4.37% | $83.58 (+12.63%) |
Aug 13, 2026 7w ago | 425 | $81.56 $76.14 | ▼ −6.65% | ▼ −4.90% | $83.58 (+2.48%) |
Aug 13, 2026 7w ago | 8-K | $81.56 $76.14 | ▼ −6.65% | ▼ −4.90% | $83.58 (+2.48%) |
Aug 3, 2026 8w ago | 8-K | $80.78 $72.65 | ▼ −10.06% | ▼ −8.83% | $83.58 (+3.47%) |
Aug 3, 2026 8w ago | Press Release | $80.78 $72.65 | ▼ −10.06% | ▼ −8.83% | $83.58 (+3.47%) |
Jun 30, 2026 13w ago | 425 | $94.54 $89.04 | ▼ −5.82% | ▼ −4.79% | $83.58 (−11.59%) |
Jun 26, 2026 13w ago | 425 | $88.57 $86.81 | ▼ −1.99% | ▼ −1.71% | $83.58 (−5.63%) |
Jun 26, 2026 13w ago | 425 | $88.57 $86.81 | ▼ −1.99% | ▼ −1.71% | $83.58 (−5.63%) |
Jun 26, 2026 13w ago | 425 | $88.57 $86.81 | ▼ −1.99% | ▼ −1.71% | $83.58 (−5.63%) |
Jun 26, 2026 13w ago | 425 | $88.57 $86.81 | ▼ −1.99% | ▼ −1.71% | $83.58 (−5.63%) |
US Market Status
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