ON Semiconductor Q2 2026 earnings beat on AI data center growth

ON Semiconductor disclosed second-quarter nett income of $226.8 million, a leap from $170.3 cardinal successful the prior-year period, fueled by accelerating request from AI information halfway customers.

On a per-share basis, GAAP diluted net came successful astatine $0.56, compared with $0.41 successful the aforesaid play past year. Excluding one-time items, the institution posted adjusted net of $0.74 per share, topping the $0.71 per stock statement estimation among analysts polled by FactSet, according to The Wall Street Journal.

Revenue climbed 9% from the year-ago 4th to $1.6 billion, edging past the $1.59 cardinal that FactSet-polled analysts had projected, according to the Journal.

President and CEO Hassane El-Khoury said successful a connection that the institution delivered revenue, gross margin, and net per stock supra the midpoint of guidance. "AI information halfway remains our fastest-growing business, and we present expect gross to much than treble successful 2026, demonstrating the spot of our intelligent powerfulness portfolio and increasing lawsuit adoption crossed the powerfulness tree," helium said.

The company's Power Solutions Group conception led gross growth, rising 19% twelvemonth implicit twelvemonth to $829 million. The Automotive and Mixed-Signal Group brought successful $545.7 million, down 2% from a twelvemonth earlier, portion the Intelligent Sensing Group contributed $228.8 million, up 7%.

Free currency travel quadrupled twelvemonth implicit twelvemonth to $425.4 million, and currency from operations roseate 150%, the institution said. ON Semiconductor besides repurchased $332 cardinal successful banal during the quarter, bringing year-to-date shareholder returns to astir 105% of escaped currency flow.

EVP and CFO Thad Trent said successful a connection that net per stock grew 4 times faster than gross twelvemonth implicit year, driven by gross borderline enlargement and outgo discipline. Non-GAAP gross borderline came successful astatine 39.3%, up from 37.6% a twelvemonth earlier.

Looking to the 3rd quarter, ON Semiconductor guided for gross successful a scope of $1.65 cardinal to $1.75 cardinal and adjusted diluted net of $0.81 to $0.93 per share, bracketing the FactSet statement of $0.83 per stock successful adjusted net connected $1.67 cardinal successful revenue.

Among concern highlights during the quarter, the institution announced a planned acquisition of Synaptics, expanded its relation successful the Nvidia MGX ecosystem, and secured AI information halfway level wins with Chinese unreality infrastructure supplier Great Wall.