Abstract

ON Semiconductor will report its second-quarter 2026 results on August 03, 2026 Post Market. This preview synthesizes the company’s last-quarter performance, current-quarter guidance and forecasts, segment dynamics, and prevailing analyst viewpoints to frame what investors should watch into the print.

Market Forecast

- For the current quarter, consensus embedded in the forecast set shows revenue of 1.59 billion US dollars, up 9.33% year over year; EBIT of 327.32 million US dollars, up 28.85% year over year; and EPS of 0.72, up 34.06% year over year. Year-over-year growth rates here follow the tool’s decimal-to-percentage conversion convention. The company’s margin framework implied by forecasts points to continued recovery, though management’s formal margin guidance was not disclosed in the forecast set. - Main business outlook: management focus remains on power solutions, analog and mixed-signal, and intelligent sensing as supply normalizes and automotive and industrial orders stabilize. - Most promising segment: the Power Solutions Group is positioned as the largest revenue contributor with 736.60 million US dollars last quarter and is expected to benefit from ongoing content gains in electrification-linked end markets.

Last Quarter Review

- ON Semiconductor’s last reported quarter delivered revenue of 1.51 billion US dollars, a gross profit margin of 38.53%, GAAP net profit attributable to shareholders of -33.40 million US dollars with a net profit margin of -2.21%, and adjusted EPS of 0.64, up 16.36% year over year. - Key highlight: adjusted operating execution exceeded prior estimates as EBIT of 289.60 million US dollars topped the consensus, while revenue also exceeded forecasts, indicating cost control resilience despite pockets of demand softness. - Main business highlights: segment revenue was led by Power Solutions Group at 736.60 million US dollars, followed by Analog and Mixed-Signal at 540.40 million US dollars and Intelligent Sensing at 236.30 million US dollars; management emphasized continued focus on high-value power and analog content attached to automotive and industrial programs.

Current Quarter Outlook (with major analytical insights)

Power Solutions Group: scale anchor and operating leverage

The Power Solutions Group remains ON Semiconductor’s revenue anchor and a central driver of near-term earnings variability. With 736.60 million US dollars of revenue last quarter, the franchise is tied to electrification themes across automotive and industrial infrastructure, where content per system continues to rise. The forecasted revenue acceleration of 9.33% year over year this quarter, combined with a 28.85% year-over-year rise in EBIT, implies improving mix and incremental operating leverage that should disproportionately benefit power devices and modules. Shipment normalization and easing channel inventory in industrial subsectors can lift utilization, supporting gross margin from the prior quarter’s 38.53% level. The key swing factor is auto and industrial backlog conversion; modest upside to consensus is conceivable if lead times and fill rates improve through late quarter, while a slower release could cap margin expansion even if revenue lands near expectations.

Analog and Mixed-Signal Group: content growth and pricing discipline

Analog and mixed-signal delivered 540.40 million US dollars last quarter and remains foundational to blended margin. Given the EPS forecast of 0.72, up 34.06% year over year, the setup implies not only volume recovery but also disciplined pricing and a richer mix of power management and interface products. The segment’s contribution to EBIT expansion should be visible if factory loading improves, as fixed-cost absorption benefits amplify at mid-to-high 30s gross margin baselines. Watch for signals on order velocity in industrial analog and power management ICs; a sustained rebound would underpin the revenue forecast and offer incremental upside to operating income. Conversely, if inventory digestion persists in parts of the distribution channel, near-term shipments may lag bookings, limiting sequential margin progress even as year-over-year optics improve.

Intelligent Sensing Group: cyclical trough with selective demand pockets

The Intelligent Sensing Group posted 236.30 million US dollars last quarter and remains in a more cyclical posture than the rest of the portfolio. The recovery path here is likely to be uneven, as consumer-adjacent demand pockets remain choppy while certain automotive and industrial vision applications stabilize. In the current quarter, contribution to consolidated revenue growth is expected to be measured, but product mix upgrades and platform wins can protect gross margin from drifting below the consolidated baseline. Investors should focus on commentary around pipeline conversion in automotive imaging and industrial sensing; sustained traction could set a base for sequential acceleration into the next half, complementing the stronger trends in power and analog.

Stock-price drivers this quarter: revenue-mix quality, gross-margin trajectory, and inventory health

Price action into the print will likely hinge on three interlinked factors. First, revenue-mix quality: a higher share from power and analog franchises tends to correlate with better incremental margins, and management’s remarks on the balance between automotive, industrial, and consumer channels will guide forward gross-margin expectations. Second, gross-margin trajectory: after a 38.53% print last quarter, investors will watch for signs that utilization and mix can lift margins toward a mid-to-high 30s handle even if pricing remains stable, aligning with the 28.85% EBIT growth forecast. Third, inventory and lead-time health: indications that channel and customer inventories are normalizing should reinforce confidence in the 9.33% revenue growth outlook and reduce risk of order pushouts that can pressure both conversion and EPS.

Analyst Opinions

The prevailing tone among institutions skews bullish based on recent previews emphasizing improving year-over-year growth in revenue and profitability alongside healthier backlog conversion. Bullish commentators highlight the forecasted 9.33% revenue growth, a projected 28.85% increase in EBIT, and a 34.06% rise in EPS as evidence that normalization and content gains are taking hold across key end markets. Several well-followed sell-side desks point to power devices’ leverage to electrification and a disciplined operating model as catalysts for sustained margin recovery through the second half of the year. The majority view expects ON Semiconductor to meet or slightly exceed top-line guidance with a modest upside bias to margins if factory loading continues to improve.

Against this backdrop, the bullish camp argues that the revenue base anchored by the Power Solutions Group and reinforced by Analog and Mixed-Signal should supply sufficient gross-profit dollars to accommodate continued investment in design wins while protecting consolidated margins near the high-30% range. Analysts also note that last quarter’s better-than-expected EBIT and EPS performance versus estimates reflects underlying cost discipline, which, if repeated, could translate into another quarter of positive operating variance. On balance, the weight of published commentary suggests investors anticipate a constructive setup into the report, with attention fixed on confirmation of margin uplift and a clear read on the demand trajectory within automotive and industrial channels.