onsemi (NASDAQ:ON) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• onsemi beat quarterly expectations: The company reported $0.74 in EPS versus the $0.72 consensus and revenue of $1.60 billion, slightly above estimates. Revenue rose 9% year over year, supported by demand for AI applications, Treo products and high-voltage power solutions.
• Profitability and cash flow improved: GAAP net income increased to $226.8 million, while free cash flow reached $425.4 million; onsemi also repurchased $332 million of stock during the quarter.
• AI remains the key growth catalyst: Management expects third-quarter revenue of approximately $1.65 billion to $1.75 billion and said AI data-center revenue could more than double in 2026. Despite the results, shares fell 1.5%, while analysts maintained a consensus “Hold” rating and a $102.24 price target.

onsemi (NASDAQ:ON - Get Free Report) posted its quarterly earnings data on Monday. The semiconductor company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.02, Zacks reports. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. onsemi had a return on equity of 12.79% and a net margin of 9.46%. onsemi updated its Q3 2026 guidance to 0.810-0.930 EPS.

onsemi Trading Down 1.5%

Shares of ON traded down $1.21 during trading hours on Monday, reaching $80.40. 14,637,881 shares of the company traded hands, compared to its average volume of 10,645,545. The stock's fifty day moving average price is $105.00 and its 200 day moving average price is $84.92. The company has a current ratio of 4.87, a quick ratio of 3.14 and a debt-to-equity ratio of 0.41. The firm has a market cap of $31.51 billion, a price-to-earnings ratio of 57.02, a PEG ratio of 0.90 and a beta of 2.01. onsemi has a 12-month low of $44.56 and a 12-month high of $134.92.

Key Stories Impacting onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: onsemi reported second-quarter revenue of $1.604 billion, up 9% year over year, while non-GAAP EPS of $0.74 exceeded the $0.72 consensus estimate. Growth was supported by strengthening demand for AI-related applications, Treo products and high-voltage power solutions. onsemi Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash generation improved substantially: GAAP net income rose to $226.8 million from $170.3 million a year earlier, operating cash flow increased 150%, and free cash flow reached $425.4 million. The company also repurchased $332 million of stock during the quarter. ON Semiconductor Reports Higher Profit and Revenue
• Positive Sentiment: Management projected third-quarter revenue of approximately $1.65 billion to $1.75 billion and GAAP diluted EPS of $0.79 to $0.91. AI data-center revenue is expected to more than double during 2026, providing an important growth catalyst. On Semi Reports Strong Q2 Earnings
• Positive Sentiment: onsemi announced a planned Synaptics acquisition, expanded its role in NVIDIA’s MGX ecosystem and launched its GaNEXUS gallium nitride power portfolio, broadening its exposure to AI infrastructure and power-management demand.
• Neutral Sentiment: The earnings beat was modest, with revenue only slightly above consensus, while the forward revenue outlook was broadly in line with expectations. That may have limited the immediate upside reaction after the report.
• Negative Sentiment: Investor sentiment may be pressured by valuation and positioning: onsemi trades at a relatively elevated earnings multiple, and its 50-day moving average is well above its 200-day average, increasing volatility risk.
• Negative Sentiment: Insider activity remains a headwind. Company executives, including the CEO, CFO and business-group presidents, have reported open-market sales but no purchases during the past six months, which may reinforce near-term profit-taking concerns.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Wall Street Zen upgraded onsemi from a "hold" rating to a "buy" rating in a research report on Monday, April 13th. Bank of America increased their target price on shares of onsemi from $115.00 to $138.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Evercore restated an "outperform" rating and issued a $137.00 target price on shares of onsemi in a report on Friday, June 26th. Jefferies Financial Group lifted their price target on shares of onsemi from $73.00 to $115.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Finally, Morgan Stanley upped their price target on shares of onsemi from $85.00 to $87.00 and gave the company an "equal weight" rating in a report on Tuesday, May 5th. Fourteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $102.24.

Institutional Investors Weigh In On onsemi

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ON. Compound Planning Inc. bought a new position in onsemi in the 4th quarter worth about $247,000. Corient Private Wealth LLC raised its stake in shares of onsemi by 35.1% during the fourth quarter. Corient Private Wealth LLC now owns 109,895 shares of the semiconductor company's stock valued at $5,951,000 after acquiring an additional 28,551 shares in the last quarter. EP Wealth Advisors LLC bought a new stake in shares of onsemi during the fourth quarter valued at approximately $418,000. Empowered Funds LLC boosted its holdings in shares of onsemi by 9.3% in the fourth quarter. Empowered Funds LLC now owns 26,322 shares of the semiconductor company's stock valued at $1,425,000 after purchasing an additional 2,241 shares during the period. Finally, Yaupon Capital Management LP purchased a new stake in shares of onsemi in the fourth quarter valued at approximately $19,146,000. Institutional investors own 97.70% of the company's stock.

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

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