ON Semiconductor (ON) reported a strong Q1 with revenue above midpoint and gross margins expanding for the third consecutive quarter, signaling a cyclical bottom and a path to recovery. The company highlighted accelerating AI data center growth, a strong China automotive recovery, and significant design-win momentum across Treo, IGBT, and SiC. Management raised AI data center revenue guidance to double YoY and provided Q2 guidance above consensus, supported by improving order patterns and lead times. Q1 revenue: $1.51B (above midpoint, +5% YoY), non-GAAP EPS $0.64, non-GAAP gross margin 38.5%.
ON Semiconductor (ON) reported a strong Q1 with revenue above midpoint and gross margins expanding for the third consecutive quarter, signaling a cyclical bottom and a path to recovery. The company highlighted accelerating AI data center growth, a strong China automotive recovery, and significant design-win momentum across Treo, IGBT, and SiC. Management raised AI data center revenue guidance to double YoY and provided Q2 guidance above consensus, supported by improving order patterns and lead times. Q1 revenue: $1.51B (above midpoint, +5% YoY), non-GAAP EPS $0.64, non-GAAP gross margin 38.5%.
AI data center is a major growth driver, with revenue growing over 30% Q/Q in Q1 and expected to double in 2026, driven by broad adoption across the power tree with multiple XPU vendors and leading hyperscalers. Management highlights a comprehensive power portfolio from grid to…
Management expresses clear confidence in a cyclical recovery and secular growth drivers, pointing to an inflection point, strong AI data center growth, and expectations for sequential margin expansion throughout the year.
Reported gross margin was 38.53%, reinforcing the quarter's better-than-guided profitability.
AI data center revenue grew >30% QoQ and is now expected to double YoY in 2026; management calls it a major growth driver.
AI data center is a major growth driver, with revenue growing over 30% Q/Q in Q1 and expected to double in 2026, driven by broad adoption across the power tree with multiple XPU vendors and leading hyperscalers. Management highlights a comprehensive power portfolio from grid to processor, with engagements across all major power supply vendors and an expanding partnership with FlexPower. They also
Believes cycle has bottomed, path to recovery.. Management expresses clear confidence in a cyclical recovery and secular growth drivers, pointing to an inflection point, strong AI data center growth, and expectations for sequential margin expansion throughout the year.
Capital expenditure intensity remains low at mid-single-digit percentage of revenue, with Q1 capex of $22 million (1.4% of revenue) and Q2 guidance of $25-35 million. Management states there is no plan to change capital intensity in the foreseeable future, citing existing capacity (including East Fishkill for Treo) and noting that revenue would need to be 25-30% higher to reach full utilization of
Management expresses clear confidence in a cyclical recovery and secular growth drivers, pointing to an inflection point, strong AI data center growth, and expectations for sequential margin expansion throughout the year.
“Our AI data center business is accelerating, with Q1 revenue growing more than 30% quarter-to-quarter and doubling year-over-year, reflecting platform ramps and expanding engagement across the power tree.”
“we expect expansion throughout the year as we're seeing the favorability from our FabRite activities that we've been taking through 25. As utilization improves... you'll see that as well.”
“We are on allocation in certain technologies... I am starting to get calls... The strength is not yet shown in automotive, but it will come, and it will come with even stronger allocation with the automotive market.”
“During the quarter, we were awarded a new IGBT-based traction inverter program with a North American OEM that is transitioning to direct semiconductor sourcing.”
| Показатель | Период | Диапазон | Середина | Статус |
|---|---|---|---|---|
| Capex | FY2026 Q2 | $25M–$35M | $30M | GUIDED |
| EPS | FY2026 Q2 | $0.65–$0.77 | $0.71 | GUIDED |
| Gross margin | FY2026 Q2 | 38%–40% | 39% | GUIDED |
| Revenue | FY2026 Q2 | $1.535B–$1.635B | $1.585B | GUIDED |
| RevenueAI | FY2026 | $0.5B | $0.5B | RAISED |
| Дата прогноза | Показатель | Целевой период | Прогноз | Факт | Результат |
|---|---|---|---|---|---|
| FY2025 Q4 | EPS | FY2026 Q1 | $0.56–$0.66 | $0.64 | Met / beat |
| FY2025 Q4 | Gross margin | FY2026 Q1 | 37.5%–39.5% | 38.53% | Met / beat |
| FY2025 Q4 | Revenue | FY2026 Q1 | $1.44B–$1.54B | $1.5133B | Met / beat |
| FY2025 Q3 | EPS | FY2025 Q4 | $0.57–$0.67 | $0.64 | Met / beat |
| FY2025 Q3 | Gross margin | FY2025 Q4 | 37%–39% | 34.92% | Missed |
| FY2025 Q3 | Revenue | FY2025 Q4 | $1.48B–$1.58B | $1.5301B | Met / beat |
Continued design wins on NIO's 900V platform signal sustained SiC content growth.
“Recent expanded collaborations with Geely and NIO highlight our role in enabling these customers to scale globally with their next generation 900 volt platforms.”
… power solution and are already in production at customers in their next generation of EV platforms, enabling flash charging and higher efficiency for a longer drive range. Our China automotive revenue grew year over year in Q1, despite the decline in the China passenger vehicle market of 6% for the same period. Our silicon carbide share of new EV models deployed at the 2026 Beijing Auto Show in April is approximately 55%. Recent expanded collaborations with Geely and NIO highlight our role in enabling these customers to scale globally with their next generation 900 volt platforms. The latest reports from the China Association of Automobile Manufacturers highlight continuous strength in new energy vehicle exports in the first quarter, supporting our view that EV adoption is extending beyond the China domestic market. With ongoing fuel supply disruption and elevated energy costs, we expect demand for high-efficiency EV platforms and silicon carbide content to remain durable, supporting long-term growth opportunities for OnSemi in automotive power globally. Turning to AI data centers, our revenue grew more than 30% quarter over quarter, nearly double our expected growth …
Management highlighted increased 2026 EV momentum driven by IGBT traction inverter wins with a North American OEM transitioning to direct semiconductor sourcing, and strong SiC adoption in China 900V platforms. — Content growth persists in EV; direct sourcing reduces the power of the Tier-1 channel, making OnSemi more essential to OEM strategies.
… zonal architecture. The platform integrates more than 30 TREO devices, enabling in-zone connectivity. Higher energy costs are accelerating EV demand, with cost-optimized EV platforms driving increased adoption of IGBT-based traction inverter solutions. Our latest generation IGBTs deliver a compelling balance of performance, efficiency, and cost, complementing our silicon carbide wins, particularly in front axle applications. During the quarter, we were awarded a new IGBT-based traction inverter program with a North American OEM that is transitioning to direct semiconductor sourcing. As the industry transitions to 900-volt EV architectures led by Chinese OEMs, we are the preferred power solution and are already in production at customers in their next generation of EV platforms, enabling flash charging and higher efficiency for a longer drive range. Our China automotive revenue grew year over year in Q1, despite the decline in the China passenger vehicle market of 6% for the same period. Our silicon carbide share of new EV models deployed at the 2026 Beijing Auto Show in April is approximately 55%. Recent expanded collaborations with Geely and NIO highlight our role in …
OnSemi is seeing early signs of tightness and allocation in certain power semiconductor technologies, driven by AI data center demand, while automotive recovery has not yet started.