onsemi reported stronger-than-expected first quarter 2026 results, signaling improving market conditions and accelerating growth in AI and automotive applications.
The company generated $1.51 billion in revenue, exceeding guidance expectations, with GAAP and non-GAAP gross margins both reaching 38.5%. Non-GAAP diluted earnings per share came in at $0.64, while onsemi also repurchased $346 million in shares during the quarter, highlighting continued focus on shareholder returns.
A major growth driver was AI data center demand, where revenue more than doubled year-over-year and increased over 30% sequentially. Growth was fueled by broader adoption of onsemi’s power solutions across multiple chip vendors and hyperscale customers, reinforcing the company’s expanding role in AI power infrastructure.
In automotive, onsemi continued to strengthen its position in next-generation EV architectures through its EliteSiC portfolio. The company highlighted expanded collaborations with Geely and NIO focused on 900 V EV platforms designed to improve charging speed and vehicle range.
The company also reported momentum in software-defined vehicle architectures, with initial production shipments of its Treo-based 10BASE-T1S Ethernet solutions to a major North American OEM. This reflects increasing semiconductor content in zonal vehicle architectures and automotive networking.
In industrial and energy infrastructure markets, onsemi secured a new design win with Sineng Electric for liquid-cooled energy storage systems and solar inverters, further diversifying its exposure to renewable energy and grid applications.
From a market perspective, the results suggest the company is emerging from the semiconductor downturn with improving operating leverage and stronger exposure to structural growth areas including AI infrastructure, electrified transportation, and industrial energy systems. The combination of operational cost optimization and rising demand in high-value applications positions onsemi to benefit from the next phase of semiconductor recovery, particularly in power and intelligent sensing markets.
Original – onsemi