ON Semiconductor Earnings Beat Estimates Driven by AI Data Center Growth

August 4, 2026 - 02:35

The chipmaker posted net income of $226.8 million for the second quarter, a solid jump from $170.3 million in the same period last year. Revenue also came in ahead of Wall Street expectations, helped by stronger orders for power management chips used in artificial intelligence data centers.

The company said its silicon carbide products and high-voltage power semiconductors saw particular strength, as cloud providers and server builders ramp up infrastructure for AI workloads. Executives noted that while the broader automotive and industrial markets remain soft, the data center segment is growing fast enough to offset those weaknesses.

Adjusted earnings per share landed at $1.08, beating the analyst consensus of $1.04. Revenue reached $1.86 billion, slightly above the $1.83 billion forecast. Gross margin improved to 45.3 percent, up from 44.8 percent a year ago, driven by a richer product mix and better factory utilization.

For the current quarter, management guided revenue to a range of $1.80 billion to $1.88 billion, with adjusted earnings per share between $0.98 and $1.08. The midpoint of that outlook is roughly in line with what analysts had expected.

Shares rose about 3 percent in after-hours trading following the release. The company also said it bought back $300 million of its own stock during the quarter and still has $1.2 billion left under its current repurchase authorization.

Chief Executive Officer Hassane El-Khoury said the results reflect disciplined execution and a sharper focus on high-growth areas like AI power delivery. He added that design wins in data center applications are expanding, and the company expects this momentum to continue through the second half of the year.