Revenue Growth Driven by Recovery
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.
ON SEMICONDUCTOR CORP is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q2 2026 10-Q:
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.
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.
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.
Revenue
$1.51B
++4.68% YoY
EPS (Basic)
$-0.08
++93.04% YoY
Gross Margin
38.5%
++18.21% YoY
Operating Income
$-53.4M
++90.69% YoY
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