ON Semi Accelerates Recovery with Record-Breaking Q2 2026 Results
Onsemi (ON), a leading supplier of semiconductor products, has reported record-breaking second quarter results for 2026. The company's revenue soared to $1.6 billion, beating the midpoint of its guidance and reflecting the operating leverage in its model.
In a conference call on August 3rd, ON Semi's President and CEO, Hassane El-Khoury, attributed the strong performance to the recovery taking shape across various markets, including AI data center business, which remains the company's fastest-growing market. The AI data center segment is expected to more than double in revenue this year, driven by stronger demand, broader customer wins, and expanding content across the entire power tree.
ON Semi has expanded its role in Nvidia's MGX ecosystem, supplying advanced power systems designed to support next-generation AI data centers. The company has also secured two power supply platform wins with Great Wall, a leading provider of power solutions for China's cloud and AI infrastructure market. Additionally, ON Semi continues to add content in U.S. hyperscalers' AI deployments, including design wins supporting AWS power supply and battery backup systems.
The wins create additional content opportunities for ON Semi's differentiated high voltage power portfolio, including silicon carbide solutions. The company expects its silicon carbide revenue in AI data center applications to grow nearly 60% year-over-year, driven by the value of higher power efficiency and superior power density in next-generation AI power architectures.
ON Semi's Q2 results also reflect strengthening demand across other markets, such as China, BEVs (battery electric vehicles), automotive, energy infrastructure, medical, and industrial. Supply is tightening in several growth areas, lead times are extending, and the company is seeing increases in both orders placed within lead time and customer escalations.
Non-GAAP gross margin reached 39.3% in Q2, and non-GAAP diluted earnings per share came in at $0.74, both above the midpoint of guidance. The results demonstrate ON Semi's ability to drive accelerated margin expansion and earnings growth as demand recovers across its markets.
The company's progress in reshaping its business and technology portfolio over the past several years is also contributing to its strong performance. With a robust recovery underway, ON Semi is well-positioned for continued growth and success in the semiconductor industry.
As the company looks ahead, it remains optimistic about its prospects. ON Semi's commitment to innovation, customer satisfaction, and operational excellence will continue to drive its growth and profitability in the years to come.
In conclusion, ON Semi's Q2 2026 results are a testament to the company's resilience and adaptability in the face of market challenges. The strong performance reflects the operating leverage in its model and demonstrates ON Semi's ability to capitalize on emerging trends and opportunities in the semiconductor industry.
As the company continues to execute its growth strategy, investors and analysts will be watching closely for further evidence of its success. With a solid foundation in place, ON Semi is poised to deliver strong performance in the second half of 2026 and beyond.
