01—Abstract
Summary
Summary of the 10-Q filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
ON Semiconductor Corporation (onsemi) reported revenue of $1,513.3 milliona for the quarter ended April 3, 2026, up $67.6 million, or approximately 5%, from $1,445.7 million a year earlier, with growth in automotive and industrial end-markets.
Gross profit rose to $583.1 millionb, a 38.5% gross margin versus 20.3% in the prior-year quarter, mainly because the prior year absorbed $237.7 million of excess and obsolete inventory charges and a $43.9 million consumables write-off that did not recur. The company still reported a net loss attributable to ON Semiconductor of $33.4 million, or $(0.08) per share, compared with a loss of $486.1 million, or $(1.15) per share, a year earlier. Operating results remained affected by $329.3 million of restructuring, asset impairment and other charges under the 2026 Manufacturing Realignment Program, including $147.0 million of impairments on manufacturing equipment held for sale and $162.1 million of other charges, mainly accelerated depreciation and ROU asset amortization.
Cash generation weakened. Operating cash flow was $239.1 millionc versus $602.3 million, which the company attributed to unfavorable working capital timing. Cash, cash equivalents and short-term investments totaled approximately $2.4 billion at quarter end, and the Revolving Credit Facility had approximately $1.5 billion available.
The company repurchased 5.7 million shares for $348.6 milliond in total under its New Share Repurchase Program, leaving approximately $5.7 billion authorized through December 31, 2028. Gross debt was unchanged at $3,004.9 million, including $804.9 million of 0% Notes maturing May 1, 2027. Management expects capital expenditures of approximately 5% of revenue for 2026, compared with approximately 1% of revenue in the quarter.
The company reported remaining performance obligations of approximately $6.5 billion under Long-term Supply Agreements, with approximately 35% expected to be recognized as revenue over the next 12 months. A securities class action concerning the SiC business remains pending, and the company says it will vigorously defend itself.
02—Key points
Key Highlights
- Revenue rose $67.6 million, or approximately 5%, to $1,513.3 million, with automotive revenue of $797.3 million (vs. $761.9 million) and industrial revenue of $417.0 million (vs. $400.0 million).
- Gross margin reached 38.5% versus 20.3% a year earlier, lifted by the absence of $237.7 million of excess and obsolete inventory charges and a $43.9 million consumables write-off recorded in the prior-year quarter.
- Operating loss narrowed to $(53.4) million from $(573.7) million, though restructuring, asset impairments and other charges of $329.3 million remained significant.
- Net loss attributable to ON Semiconductor was $(33.4) million, or $(0.08) per diluted share, compared with $(486.1) million, or $(1.15) per share, in the prior-year quarter.
- Operating cash flow fell to $239.1 million from $602.3 million, driven mainly by unfavorable working capital timing; capital expenditures were $21.9 million.
- The company repurchased 5.7 million shares for $348.6 million and reports approximately $5.7 billion remaining under its $6.0 billion New Share Repurchase Program.
- Remaining performance obligations under Long-term Supply Agreements were approximately $6.5 billion, with approximately 35% expected to convert to revenue over the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, On Semiconductor lost $0.02.
- Revenue$1.51B100.0%
- Cost of revenue−$930.2M61.5%
- Gross profit$583.1M38.5%
- Operating costs−$636.5M42.1%
- Operating income−$53.4M3.5%
- Interest, other & tax$20.0M1.3%
- Net income−$33.4M2.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.51B$1.45B | +4.7% |
| Cost of Revenue | $930.20M$1.15B | −19.2% |
| Gross Profit | $583.10M$293.80M | +98.5% |
| Operating Expenses | $636.50M$867.50M | −26.6% |
| Operating Income | -$53.40M-$573.70M | +90.7% |
| Net Income | -$33.40M-$486.10M | +93.1% |
| EPS (Basic) | $-0.08$-1.15 | +93.0% |
| EPS (Diluted) | $-0.08$-1.15 | +93.0% |
| Shares Outstanding (Basic) | 394.10M421.30M | −6.5% |
| Shares Outstanding (Diluted) | 394.10M421.30M | −6.5% |
05—Questions
Frequently Asked Questions
Why did gross profit improve so significantly year over year?
Gross profit increased $289.3 million, or approximately 98%, to $583.1 million, primarily because the quarter ended April 4, 2025 included $237.7 million of excess and obsolete inventory charges and a $43.9 million write-off of consumables and manufacturing supplies that did not recur. The filing also cites slightly improved manufacturing utilization and favorable segment mix, partially offset by lower volumes in select end-markets.
What are the restructuring and impairment charges in this quarter?
Restructuring, asset impairments and other, net totaled $329.3 million, comprising $20.2 million of restructuring (severance for approximately 650 planned workforce reductions, with $24.0 million total expected in 2026), $147.0 million of asset impairments on manufacturing equipment held for sale in South Korea ($82.0 million) and the Czech Republic ($65.0 million), and $162.1 million of other charges, primarily accelerated depreciation and ROU asset amortization for abandoned leases. The filing notes that additional impairments may be recorded in future periods.
How is the company's liquidity and capital allocation position?
Cash, cash equivalents and short-term investments were approximately $2.4 billion at April 3, 2026, and the Revolving Credit Facility had approximately $1.5 billion available. The company repurchased $348.6 million of stock during the quarter and has approximately $5.7 billion authorized remaining under the New Share Repurchase Program through December 31, 2028. The company states that cash on hand, operating cash flow and revolver availability are adequate for at least the next 12 months.
What is the company's debt profile and near-term maturity?
Gross long-term debt was $3,004.9 million, consisting of $1,500.0 million of 0.50% Notes due 2029, $804.9 million of 0% Notes due 2027, and $700.0 million of 3.875% Notes due 2028. The 0% Notes mature on May 1, 2027 unless earlier repurchased, redeemed or converted. The company reports it was in compliance with all debt covenants as of April 3, 2026.
What outlook or forward-looking commitments does the filing provide?
The company expects capital expenditures of approximately 5% of revenue for the year ending December 31, 2026, and plans to continue its share repurchases subject to market conditions. Remaining performance obligations under Long-term Supply Agreements were approximately $6.5 billion, with approximately 35% expected to be recognized over the next 12 months, though timing and amounts may be modified or canceled. The filing also notes that a securities class action concerning the SiC business remains pending, with a motion to dismiss the third amended complaint fully briefed as of December 10, 2025.
06—Continue