TLDR
- ON Semi posted Q1 EPS of $0.64, beating the $0.61 consensus, with revenue of $1.51 billion topping forecasts of $1.49 billion.
- The stock fell 4.2% in after-hours trading despite the beat, closing the regular session at $102.04.
- Q2 guidance came in above Wall Street estimates, with EPS of $0.65–$0.77 and revenue of $1.54B–$1.64B.
- AI data center revenue grew more than 30% sequentially in Q1.
- ON Semi stock has risen 88% year-to-date in 2026.
ON Semiconductor (ON) beat first-quarter 2026 earnings and revenue expectations, but the stock still dropped 4.2% in after-hours trading on Monday.
ON Semiconductor Corporation, ON
The stock ended the regular session at $102.04, then slipped to around $97.62 after the results dropped.
ON Semi posted adjusted EPS of $0.64, up from $0.55 a year ago and above the Wall Street estimate of $0.61. Revenue came in at $1.51 billion, up 1.5% year-over-year and just ahead of the $1.49 billion analyst consensus.
Gross margin expanded to 38.5%, driven by improved manufacturing efficiency. Operating cash flow hit $239 million, with free cash flow of $217 million.
$ON Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.513B (Est. $1.49B) 🟢; +5% YoY
🔹 Adj. EPS: $0.64 (Est. $0.61) 🟢
🔹 Gross Margin: 38.5%
🔹 AI Data Center Revenue: More than doubled YoY; +30%+ QoQ
🔹 Buybacks: $346M, ~160% of FCFQ2 Guide:
🔹 Revenue: $1.535B – $1.635B (Est.… pic.twitter.com/tX8WFmGGJU— Wall St Engine (@wallstengine) May 4, 2026
The drop in after-hours trade came despite a solid print — and solid guidance. A Morgan Stanley team led by Joseph Moore flagged before the report that expectations had “meaningfully come up” since last quarter. The firm carries an $85 price target on the stock.
That context matters. ON Semi has climbed 88% year-to-date in 2026, including a 63% surge in April alone. When a stock runs that far that fast, it needs more than a beat to keep moving.
AI and Automotive Drive Growth
CEO Hassane El-Khoury said the company “moved beyond the cyclical trough” and pointed to AI data center revenue growing more than 30% sequentially as a key driver.
“We exceeded expectations as demand strengthened through the quarter,” El-Khoury said in the earnings release.
Automotive remains the largest segment, making up 51% of 2025 revenue, with Tesla and NIO among its key customers. Industrial came in at 28%, covering areas like energy storage and EV charging. AI data centers, 5G, and other tech made up the remaining 21%.
Demand in the auto space has been soft for a couple of years, but El-Khoury pointed to long-term growth opportunities in automotive, industrial, and AI applications.
Q2 Guidance Tops Estimates
For Q2 2026, ON Semi guided EPS of $0.65 to $0.77, above the Wall Street consensus of $0.66. Revenue guidance of $1.54 billion to $1.64 billion also cleared the $1.53 billion estimate.
Full-year analyst forecasts put FY2026 EPS at $2.92, with revenue reaching $6.29 billion. FY2027 revenue estimates sit at $6.94 billion.
The company’s current ratio stands at 4.52, meaning it has more than four dollars in liquid assets for every dollar of short-term obligations.
Despite the after-hours slide, the stock had been trading near its 52-week high of $105 heading into the print.
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