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
In Q2 FY2026, ON Semiconductor capitalized on a broad demand recovery, with its Power Solutions Group (PSG) revenue surging 19% as automotive and AI data center end-markets strengthened. Gross margin expanded on higher factory utilization and a richer product mix, while $41.2 million in restructuring charges from a manufacturing realignment program weighed on operating expenses. Net income rose 33% year-over-year, yet year-to-date operating cash flow declined 11% due to working capital pressures. The company also advanced its all-stock acquisition of Synaptics, expected to close in mid-2027, which introduces integration risks and potential debt-related obligations.
Revenue
$1.6B
+9.18% YoY
EPS (Diluted)
$0.56
+36.59% YoY
Gross Margin
38.4%
+0.9 pts YoY
Operating Income
$258.6M
+33.71% YoY
Source: SEC XBRL
On Semiconductor (ON) reported Q2 FY2026 revenue of $1.6B, up 9.2% year over year. Operating margin was 16.1%, up 2.9 points from 13.2% a year earlier. ON's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 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% |
| Jun 2025 | 0.53 | 0.55 | Miss -3.5% |
3 reported segments · SEC XBRL
Segment revenue totals $1.6B, which is the $1.6B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as gross profit, the measure ON itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Total revenue rose 9% YoY to $1,603.5 million, with PSG surging 19% driven by increased demand across automotive, industrial, and AI data center end-markets. AMG declined 2% due to industrial softness, while ISG grew 7%.
Source: 10-Q Item 2 MD&A
Gross margin increased 0.8 percentage points to 38.4%, supported by improved manufacturing utilization and a favorable product mix shift, particularly in AMG where margin rose 2.7 points to 53.4%.
Source: 10-Q Item 2 MD&A
The Company recognized $41.2 million in restructuring, asset impairments, and other charges during the quarter, including $25.0 million in severance for approximately 650 employees and $16.3 million in equipment impairment charges, as part of its multiyear manufacturing realignment program.
Source: 10-Q Item 2 MD&A
On June 25, 2026, onsemi entered into an all-stock agreement to acquire Synaptics, with Synaptics stockholders expected to own 12% of the combined company; the transaction is anticipated to close in mid-2027, subject to regulatory approvals and customary conditions.
Source: 10-Q Item 2 MD&A
During Q2 FY2026, the company repurchased 3.1 million shares for $334.7 million, bringing year-to-date repurchases to 8.8 million shares for $683.3 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
The proposed all-stock acquisition of Synaptics may not close if conditions are not met, including stockholder approval and regulatory clearances. Failure to complete could result in a decline in ON Semiconductor's stock price, payment of a $320 million termination fee, and lost expenses.
Source: 10-Q Item 1A Risk Factors
The merger requires approvals under the HSR Act and other antitrust and foreign investment regimes, which could be delayed, denied, or impose onerous conditions. Any such outcome could prevent completion or materially alter the terms.
Source: 10-Q Item 1A Risk Factors
Integrating Synaptics may prove complex and time-consuming, with risks of business disruption, customer loss, and failure to capture anticipated synergies. The expected benefits may not materialize, harming the combined company's financial performance.
Source: 10-Q Item 1A Risk Factors
Uncertainty around the merger could disrupt ON Semiconductor's relationships with customers, distributors, and employees, leading to negative publicity or litigation. Management's attention may be diverted, impacting ongoing operations.
Source: 10-Q Item 1A Risk Factors
Synaptics' existing debt, including convertible notes, may require repayment or refinancing, increasing ON Semiconductor's leverage. Future conversion of the convertible notes into ON Semiconductor shares could dilute stockholders and raise debt service obligations, limiting financial flexibility.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.60 $B | 1.47 $B | +9.18% |
Cost of Revenue $M | 987.20 $M | 916.80 $M | +7.68% |
Gross Profit $M | 616.30 $M | 551.90 $M | +11.67% |
Operating Income $M | 258.60 $M | 193.40 $M | +33.71% |
Net Income $M | 226.80 $M | 170.30 $M | +33.18% |
EPS (Basic) $ | 0.58 $ | 0.41 $ | +41.46% |
EPS (Diluted) $ | 0.56 $ | 0.41 $ | +36.59% |
Answers draw on this SEC filing and the data on this page
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.
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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