Onsemi Beats Q2 Estimates, Sees AI Data Center Revenue Doubling in 2026
ON sits 88% above its 52-week low of $44.56.
Summary
Onsemi reported Q2 adjusted EPS of $0.74, beating the $0.71 consensus, on revenue of $1.6B (vs. $1.59B expected). Non-GAAP gross margin came in at 39.3% and operating margin at 20.8%. The standout is AI data center revenue, now expected to more than double in 2026 — a significant acceleration from prior commentary. This follows the earlier Q3 guidance miss ($1.65B-$1.75B vs. $1.78B consensus), but the AI growth narrative is overshadowing the near-term softness. Shares rose 5.35% after hours, reflecting the market's focus on the AI upside. The Synaptics acquisition, announced in June, adds another layer to the AI story, though integration risks remain.
At the time of this announcement, ON was trading at $83.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $31.3B. The 52-week trading range was $44.56 to $134.92. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.