Here's the latest buzz about ON Semiconductor
$ON (+1,57%) (NASDAQ: ON) regarding today’s Q2 2026 Earnings Release (August 3, 2026, after U.S. market close):
🚀 Wall Street Benchmarks & Expectations
With the semiconductor cycle having bottomed out, Wall Street is looking ahead to the second quarter of 2026 for the power semiconductor and sensor specialist:
Revenue Forecast (Consensus): approx. $1.59 billion (+8% YoY). Management’s guidance range is $1.535 billion to $1.635 billion.
Adjusted earnings per share (Adj. EPS): Expected at $0.72 (+36% YoY compared to $0.53 in the same quarter of the previous year).
Gross margin (guidance): Targeted within a range of 38.0% to 40.0% (non-GAAP).
🔮 Automotive Bottoming Out vs. AI Data Center Boost
Automotive & SiC (silicon carbide): Inventory adjustments at automakers are winding down. Sales of SiC power solutions for electric vehicles (EVs) and advanced driver-assistance systems (ADAS) are regaining momentum.
AI data centers as a growth driver: A key catalyst is the power supply for AI servers. Management has announced that revenue in the AI data center segment is expected to double in calendar year 2026.
Portfolio streamlining (“Fab Right Strategy”): Onsemi is strategically divesting low-margin, non-core businesses (~$300 million in revenue exits for the full year), which slightly dampens total revenue but improves gross margins.
🤖 The Focus: Q3 Outlook & Synaptics Deal
New growth driver: In addition to the quarterly figures themselves, investors are looking for details on the planned acquisition of Synapticsto broaden Onsemi’s presence in the areas of Physical AI, edge computing, and sensor technology.
Q3 2026 Outlook: The market expects the recovery to continue in the third quarter, with a consensus EPS of around $0.84.
⚡ 💡 Jack’s take
Onsemi has left the cyclical trough behind and is shifting from a defensive to an offensive stance! The key lies in its dual drivers: On the one hand, the automotive sector is once again delivering stable cash flows following the inventory adjustment; on the other hand, the business with high-performance power supplies for AI servers is scaling massively. If CEO Hassane El-Khoury follows through on his Q3 outlook, the stock will remain one of the most exciting turnaround and AI-driven growth stocks in the chip industry!