ON Semiconductor stock reports 9.2 percent revenue growth

Published on 09/30/2026 at 12:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ON Semiconductor stock reports Q2 revenue of USD 1,603.5 million, up 9.2 percent year over year. GAAP EPS rose 36.6 percent to USD 0.56.

Techniker im Reinraumanzug handhabt einen Silizium-Wafer in einer modernen Halbleiterfabrik — ON Semiconductor US6821891035 zeigt fotorealistische Wafer-Handhabung im Reinraum einer Halbleiterfabrik mit Schutzausrüstung, Illustration mit AI erstellt.

ON Semiconductor stock reported Q2 2026 revenue of USD 1,603.5 million, up 9.2 percent year over year, while GAAP diluted EPS rose 36.6 percent to USD 0.56 from USD 0.41. The July 3, 2026 quarter shows a recovery led by power and AI-related demand rather than a broad rebound across every end market.

Revenue growth shifts toward AI power

According to Financial Report Insights, the Other end-market category grew 21.3 percent year over year to USD 399.5 million in Q2 2026. That category includes AI data center products and increased 33.6 percent from the first quarter, more than offsetting a 2.0 percent sequential decline in automotive revenue to USD 781.3 million.

Power Solutions Group revenue rose 19 percent year over year to USD 829.0 million, but its Q2 gross margin was 27.8 percent. The contrast matters because Advanced Solutions Group revenue fell 2 percent while its gross margin reached 53.4 percent, leaving mix and utilization central to the next margin step.

Margins and guidance set the test

ON Semiconductor's Q2 GAAP gross margin was 38.4 percent, up from 37.6 percent in the prior-year quarter, while operating margin reached 16.1 percent from 13.2 percent. The company also generated USD 459.7 million in operating cash flow during Q2 2026, according to the reported financial figures.

MarketBeat reported on September 29, 2026 that analysts had a Moderate Buy consensus, split between 15 buy and 15 hold ratings. The same report cited Q3 2026 EPS guidance of USD 0.81 to USD 0.93 and Q2 EPS of USD 0.74 on an adjusted basis, above the USD 0.72 consensus.

Analyst target leaves a wide gap

MarketBeat cited an average 12-month price target of USD 94.76 against a share price of USD 75.65 on September 29, 2026. It also reported that Stifel Nicolaus cut its target from USD 90.00 to USD 75.00 on September 17, 2026, while Citigroup reduced its target from USD 120.00 to USD 98.00 on August 5, 2026.

The mixed target actions frame the central issue for ON Semiconductor: AI and power demand are accelerating, but automotive remains the largest end market and its sequential decline places more weight on the smaller growth categories. The next report is listed for November 2, 2026, before the market opens, according to Gekko.

Market value remains below yearly high

ON Semiconductor had a market capitalization of USD 29.6 billion and a 52-week range of USD 44.56 to USD 134.92 as of September 29, 2026. The distance between the reported market value and the yearly high underscores how much of the recovery case still depends on sustained margin expansion and AI-related demand.