Onsemi beats Q2 estimates, guides Q3 revenue above consensus

Investing.com -- Onsemi (NASDAQ: ON) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.74 beating the consensus estimate of $0.71 by $0.03. Revenue reached $1.6 billion, surpassing the analyst estimate of $1.59 billion and representing a 9% increase YoY from $1.47 billion in the second quarter of 2025.

For the third quarter of 2026, the company provided revenue guidance of $1.65 billion to $1.75 billion, with a midpoint of $1.70 billion above the analyst consensus of $1.67 billion. The company expects adjusted EPS in the range of $0.81 to $0.93, with a midpoint of $0.87 above the consensus estimate of $0.84.

Shares rose 4.5% following the announcement.

"We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions," said Hassane El-Khoury, President and CEO of onsemi.

The company’s adjusted gross margin expanded to 39.3% in the second quarter, compared to 37.6% in the same period last year. Adjusted operating margin increased to 20.8% from 17.3% YoY. Free cash flow quadrupled YoY to $425.4 million, with free cash flow margin expanding from approximately 7% to 27%.

The Power Solutions Group segment generated revenue of $829.0 million, up 19% YoY, while the Advanced Solutions Group reported revenue of $545.7 million, down 2% YoY. The Intelligent Sensing Group posted revenue of $228.8 million, up 7% YoY.

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