Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ON Semiconductor posted Q1 FY2026 revenue of $1.51B (+4.7% YoY) with a dramatic gross margin recovery to 38.5% from 20.3%, though the company remained modestly net-loss negative at -$33.4M amid significantly reduced operating losses versus the prior year.
Revenue
$1.51B
+4.68% YoY
EPS (Diluted)
-$0.08
+93.04% YoY
Gross Margin
38.5%
+18.2 pts YoY
Operating Income
-$53.4M
+90.69% YoY
Source: SEC XBRL
On Semiconductor (ON) reported Q1 FY2026 revenue of $1.51B, up 4.7% year over year. Operating margin was -3.5%, against -39.7% a year earlier. Operating cash flow was $239.1M, down 60.3% year over year. ON's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.74 | 0.74 | Beat +0.5% |
| Mar 2026This filing | 0.64 | 0.62 | Beat +3.3% |
| Dec 2025 | 0.64 | 0.64 | Miss -0.2% |
| Sep 2025 | 0.63 | 0.61 | Beat +3.7% |
Adjusted (non-GAAP) EPS of $0.64 versus the $0.62 analyst consensus — a +3.3% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.08.
Compiled by AI from this SEC filing
Revenue grew 4.7% YoY to $1.51B in Q1 FY2026 from $1.45B in the prior-year period, suggesting early signs of demand stabilization after a prolonged inventory correction cycle in the semiconductor industry.
Source: 10-Q Income Statement
Gross margin surged to 38.5% from 20.3% a year ago — an 18.2 percentage point improvement — driven by a 19.2% reduction in cost of revenue to $930.2M, reflecting improved manufacturing efficiency and a more favorable product mix.
Source: 10-Q Income Statement
Operating loss improved by 90.7% YoY to -$53.4M from -$573.7M, indicating that cost restructuring and improved gross profit ($583.1M vs. $293.8M prior year) are translating into meaningful operating leverage.
Source: 10-Q Income Statement
The company repurchased $345.7M in shares during Q1 FY2026, up 15.2% from $300.1M in the prior year, signaling management confidence in long-term value even as the company reported a net loss.
Source: 10-Q Cash Flow Statement
Cash and equivalents fell 27.5% YoY to $2.00B from $2.76B, partly due to $366.0M in financing outflows (including buybacks) and operating cash flow declining 60.3% YoY to $239.1M.
Source: 10-Q Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Operating cash flow dropped sharply by 60.3% YoY to $239.1M from $602.3M, even as net losses narrowed. This divergence may reflect working capital headwinds or timing of collections, and if sustained, could pressure the company's ability to fund buybacks and debt service simultaneously.
Source: 10-Q Cash Flow Statement
Despite significant improvement, ON Semiconductor still reported a net loss of -$33.4M and a net margin of -2.2% in Q1 FY2026. Sustained unprofitability, even at reduced levels, limits retained earnings and erodes stockholders' equity, which declined 9.1% YoY to $7.30B.
Source: 10-Q Income Statement & Balance Sheet
Long-term debt stands at $3.00B with a debt-to-equity ratio of 0.64x. While manageable, the combination of ongoing net losses, declining cash reserves, and $366M in financing outflows increases refinancing risk if market conditions tighten.
Source: 10-Q Balance Sheet
Depreciation and amortization surged 70.5% YoY to $286.7M, which inflates operating cash flow relative to true economic earnings. High D&A may reflect prior capital-intensive investments that have yet to generate commensurate revenue returns.
Source: 10-Q Cash Flow Statement
The company spent $345.7M on share repurchases in Q1 FY2026 while reporting a net loss, accelerating the decline in cash from $2.76B to $2.00B YoY. Continuing buybacks during a loss period reduces financial flexibility and could be questioned if operating performance does not improve.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.51 $B | 1.45 $B | +4.68% |
Cost of Revenue $B | 0.93 $B | 1.15 $B | -19.25% |
Gross Profit $M | 583.10 $M | 293.80 $M | +98.47% |
Operating Income $M | -53.40 $M | -573.70 $M | +90.69% |
Net Income $M | -33.40 $M | -486.10 $M | +93.13% |
EPS (Basic) $ | -0.08 $ | -1.15 $ | +93.04% |
EPS (Diluted) $ | -0.08 $ | -1.15 $ | +93.04% |
Answers draw on this SEC filing and the data on this page
ON Semiconductor delivered strong Q2 FY2026 results with robust revenue growth and margin expansion, driven by its power segment, while advancing its Synaptics acquisition and managing restructuring costs.
ON Semiconductor (ON) reported a sharp FY2025 earnings decline, with revenue falling 15.3% to $6.0B and net income collapsing 92.3% to $121M, driven by rising costs and severe margin compression, even as the company maintained strong liquidity and aggressively returned capital via share buybacks.
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