EarningsQ2 2026 Earnings Report
MX:ON Q2 2026 EPS Results
Actual EPS$12.74
Consensus EPS$12.31
Beat/MissBeat by +$0.43
One Year Ago EPS$9.13
MX:ON Q2 2026 Revenue Results
Actual Revenue$27.61B
Expected Revenue$27.36B
Beat/MissBeat by +$249.61M
YoY Revenue Growth+9.18%
Earnings Announcement Details
QuarterQ2 2026
Date08/03/2026
TimeAfter Close
Conference CallMonday, August 3, 2026
MX:ON Upcoming Earnings
ON Semiconductor's next earnings date is estimated for November 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ON Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: revenue growth, meaningful margin expansion, robust free cash flow, upgraded AI data center outlook (now expected to more than double in 2026), and multiple product and design wins (silicon carbide, high-voltage, ESS, Treo). Management provided constructive Q3 guidance (revenue $1.65B–$1.75B, non-GAAP gross margin 40%–42%, non-GAAP EPS $0.81–$0.93) and highlighted strategic moves (Synaptics acquisition, Fab Right divestitures) that support long-term profitability. Headwinds include input cost inflation, extended lead times and selective supply constraints that required short-term prioritization of AI shipments over automotive/industrial, along with ongoing restructuring impacts. Overall, positives are numerous and sizable, and the company appears positioned to sustain margin and cash-flow improvements while managing near-term supply and cost pressures.Company Guidance
Revenue and Top-Line Recovery
Q2 revenue of $1.6 billion, up ~9% year-over-year and up 6% sequentially; Q2 revenue was above the midpoint of guidance and above normal seasonality despite completing $35M of planned non-core revenue exits.
Margin Expansion and Profitability
Non-GAAP gross margin of 39.3% in Q2 (an 80 basis point sequential increase) and non-GAAP diluted EPS of $0.74 (a 16% increase over the prior quarter); company expects non-GAAP gross margin of 40%–42% in Q3.
Strong Free Cash Flow and Capital Returns
Generated $425 million of free cash flow in Q2 (nearly quadrupled YoY per management), achieved record LTM free cash flow margin of 24%, and returned $332 million to shareholders via share repurchases in the quarter; year-to-date returned ~105% of free cash flow.
AI Data Center Momentum and Upgraded Outlook
AI data center identified as fastest-growing market; management now expects AI data center revenue to more than double in 2026 vs. 2025; 'Other' revenue (anchored by AI data center) was $400M, up 34% sequentially.
Silicon Carbide and High-Voltage Growth
Silicon carbide revenue in AI data center applications expected to grow nearly 60% year-over-year in 2026; automotive silicon carbide revenue in China expected to increase 60%–70% year-over-year as market share and program ramps continue.
Industrial and ESS Strength
Industrial revenue $423M in Q2 (up 1% sequentially and 4% YoY); ESS revenue expected to grow ~40% year-over-year in 2026, supported by new EliteSiC hybrid ESS module with 99.3% efficiency and a 500 kW hybrid module sampling that increases power density by ~20%.
Operational Leverage and Utilization Improvement
Fab utilization increased to 83% from 77% in Q1, contributing to margin expansion; management communicated that each 1-point increase in utilization translates to ~25–30 bps of gross margin improvement and expects further sequential margin expansion as utilization benefits flow through.
Business Unit Performance
Power Solutions Group (PSG) revenue $829M (+13% QoQ, +19% YoY); Analog & Mixed Signal Group (AMG) $546M (+1% QoQ); Intelligent Sensing Group (ISG) $229M (+7% YoY).
Strong Balance Sheet and Low CapEx
Cash and short-term investments ~ $3.9B with total liquidity ~$5.4B including $1.5B undrawn revolver; CapEx $34M (2.1% of revenue) in Q2 and full-year CapEx now expected below 5% of revenue.
Strategic M&A and Product Investments
Announced agreement to acquire Synaptics (expected mid-2027) to combine connected compute with onsemi's power, sensing and control portfolio; continued roll-out of Treo analog-mixed-signal products with plan to double number of products sampling this year.
MX:ON Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed