ON Semiconductor Q2 revenue hits $1.6 billion, AI data center revenue expected to more than double in 2026

Earnings
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Summary · why it matters

ON Semiconductor reported second-quarter revenue of $1.6 billion, a 6% sequential increase driven by accelerated demand in AI data centers, with non-GAAP gross margin expanding 80 basis points to 39.3% and non-GAAP earnings per share rising 16% to $0.74. The company now expects AI data center revenue to more than double in 2026, supported by design wins in the Nvidia MGX ecosystem and Amazon’s AWS power supply platforms, while energy storage systems revenue is forecast to grow approximately 40% year over year. Automotive silicon carbide revenue in China is projected to increase between 60% and 70% in 2026, reflecting market share gains with customers such as Geely Zeekr and Xiaomi. Free cash flow nearly quadrupled year over year to $425 million, and the company returned $332 million to shareholders through share repurchases. For the third quarter, ON Semiconductor guided revenue of $1.65 billion to $1.75 billion, non-GAAP gross margin of 40% to 42%, and non-GAAP earnings per share of $0.81 to $0.93.

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ON Semiconductor Corporation
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AI data center revenue expected to more than double in 2026, with design wins in Nvidia MGX and AWS power supply platforms.

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