ON Semiconductor posts strong Q2 2026 earnings as AI data center demand accelerates

ON Semiconductor reported Q2 2026 revenue of $1.604 billion, a 9% year-over-year increase, beating Wall Street estimates with non-GAAP EPS of $0.74, driven by a 19% surge in its Power Solutions Group to $829 million amid accelerating AI data center demand. CEO Hassane El-Khoury projected AI data center revenue will more than double by end of 2026, and the company announced plans to acquire Synaptics to bolster connected compute and physical AI capabilities. For Q3 2026, onsemi guided revenue between $1.65 billion and $1.75 billion with non-GAAP gross margin of 40% to 42%.

Via asml.com ON Semiconductor posts strong Q2 2026 earnings as AI data center demand accelerates The chipmaker beat Wall Street estimates with $1.604 billion in revenue while its power solutions business surged 19% year-over-year ON Semiconductor just turned in a quarter that makes its pivot toward AI infrastructure look less like a bet and more like a payoff. The company reported Q2 2026 revenue of $1.604 billion, a 9% jump from the $1.469 billion it posted a year ago, with non-GAAP earnings per share of $0.74 clearing the consensus estimate of roughly $0.71. GAAP diluted EPS came in at $0.56. Free cash flow quadrupled to $425.4 million. Power solutions and AI demand are doing the heavy lifting The star of the earnings report was onsemi’s Power Solutions Group, which pulled in $829 million in revenue. That’s a 19% increase year-over-year, driven largely by growing demand for intelligent power management in AI data centers. CEO Hassane El-Khoury projected that the company’s AI data center revenue will more than double by the end of 2026. The company pointed to its deepening role within the NVIDIA MGX ecosystem as a key growth catalyst. A new collaboration with Great Wall in China adds another dimension to the growth story. Margins, buybacks, and a major acquisition play Non-GAAP gross margin landed at 39.3%, with non-GAAP operating margin at 20.8%. The company also spent $332 million on share repurchases during the quarter. Perhaps the most significant strategic move was the announced plan to acquire Synaptics. The deal is aimed at bolstering onsemi’s capabilities in connected compute and physical AI applications. Synaptics has historically been known for its human interface solutions, think touchpads and fingerprint sensors, but has been expanding into IoT and edge AI processors. Forward guidance suggests momentum isn’t fading For Q3 2026, onsemi guided revenue between $1.65 billion and $1.75 billion. The company also projected a non-GAAP gross margin of 40% to 42% for the upcoming quarter, an improvement over Q2’s 39.3%. After-hours trading reflected the market’s enthusiasm, with shares moving higher following the earnings release. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .