onsemi's second quarter revenue of $1.6B and EPS of $0.74 both beat expectations, driven by strong AI demand.

ON Semiconductor reported second quarter 2026 revenue of $1.604 billion, an increase of 9% year-over-year, with non-GAAP diluted EPS of $0.74. The results exceeded analyst expectations for both revenue and earnings, supported by strengthening demand in AI-driven applications.

Key Highlights

• Non-GAAP gross margin for the quarter was 39.3%, expanding from 37.6% in the prior-year period and exceeding the midpoint of guidance.
• The company reported that its AI data center business is its fastest-growing segment and now expects related revenue to more than double in 2026.
• Free cash flow quadrupled year-over-year to $425.4 million, representing a free cash flow margin of 27%, up from approximately 7% a year ago.
• The Power Solutions Group (PSG) segment led growth, with revenue of $829.0 million increasing 19% year-over-year.