ON Semiconductor Q1 2026 earnings: net loss tied to restructuring charges, AI data-center demand accelerates
Onsemi posted a GAAP net loss driven by large one-time restructuring charges, while underlying (adjusted) profit and revenue both grew, led by a surge in AI data-center demand.
| Q1 2026 | Reported |
|---|---|
| EPS | -$0.08 |
| Revenue | $1.51B |
Figures as reported by the company to the SEC for the quarter ended April 3, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- The reported net loss for the quarter was almost entirely due to roughly $329 million in restructuring, asset-impairment and other one-time charges tied to the company’s ongoing cost-cutting and factory-consolidation efforts, not to weak underlying operations.
- Stripping out those one-time items, the company’s adjusted (non-GAAP) net income was $253.1 million, or $0.64 per share, and adjusted operating margin was 19.1% — a sign the core business remained solidly profitable.
- Revenue was roughly flat compared with the prior quarter but up about 5% from a year earlier, as the semiconductor demand cycle showed early signs of stabilizing after a prolonged downturn.
- CEO Hassane El-Khoury said the quarter marked a ‘clear inflection point,’ with order patterns improving through the period, and said the company believes ‘this cycle has found its low point’ with a path to recovery ahead.
- A standout driver was the AI data-center business, which the CEO said grew more than 30% sequentially, offsetting continued softness in the company’s larger automotive and industrial end markets.
- Gross margin rose for a third straight quarter to 38.5%, which management attributed to structural manufacturing improvements and a leaner cost base even though sales volumes remained seasonally low.
- The trailing-year figures show the effect of that cost discipline: per-share earnings over the past year grew about 45% even as revenue over the same period declined slightly, pointing to improved efficiency rather than sales growth as the main profit driver.
- The company generated $217 million in free cash flow during the quarter, indicating it continued to generate cash despite the accounting net loss.
- For the current quarter, onsemi guided to revenue of $1.54 billion to $1.64 billion and adjusted earnings per share of $0.65 to $0.77, implying a sequential pickup in both sales and profitability.
Q1 2026 in context
| Metric | Apr 2026 | Apr 2025 | Change |
|---|---|---|---|
| Revenue | $1.5B | $1.4B | +4.7% |
| Net income | -$33M | -$486M | +93.1% |
| Free cash flow | $217M | $455M | -52.2% |
| Diluted EPS | -$0.08 | -$1.15 | +93.0% |
| Gross margin | 38.5% | 20.3% | +18.2 pts |
| Operating margin | -3.5% | -39.7% | +36.2 pts |
| Net margin | -2.2% | -33.6% | +31.4 pts |
Figures for the quarter ended Apr 2026 and the quarter ended Apr 2025, as reported to the SEC.
How the stock took it
ON Semiconductor Corp closed at $103.03 on May 1, 2026, the last session before the report, and at $102.67 on May 5, 2026, the first session after it — -0.3% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Nov 3, 2025 | $50.08 | $48.28 | -3.6% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call