Gasgoo Munich-onsemi officially released its first-quarter 2026 financial results on May 6, with key metrics broadly beating the midpoint of its prior guidance, according to Gasgoo. The chipmaker also issued its outlook for the second quarter, underscoring a broader industry recovery.
Image Source: onsemi
Revenue for the quarter hit $1.513 billion, topping the midpoint of its guidance. Both GAAP and non-GAAP gross margins came in at 38.5%. GAAP operating margin slipped to 3.5%, while non-GAAP operating margin stood at 19.1%. On the earnings front, GAAP diluted EPS slipped to $0.08, with non-GAAP diluted EPS at $0.64. The company repurchased $346 million worth of shares during the quarter—roughly 160% of free cash flow—demonstrating a robust commitment to capital returns.
On the business front, AI data centers emerged as the primary growth engine, with related revenue doubling year-over-year and climbing more than 30% quarter-over-quarter. The automotive segment continued to make strides: EliteSiC products are facilitating the shift to 900V high-voltage architectures in electric vehicles, boosting range and fast-charging speeds, while partnerships with Geely, NIO, and other automakers have deepened. In the realm of software-defined vehicles, Treo-based 10BASE-T1S Ethernet solutions have entered mass production to support the next-generation zone control architectures of major North American automakers. On the industrial and energy front, onsemi forged a new partnership with Sineng Electric to power its 430kW liquid-cooling energy storage systems and 320kW photovoltaic inverters.
"Market demand strengthened throughout the first quarter, driving results that exceeded expectations as we emerged from the industry cycle's trough and onto a recovery path," said Hassane El Khoury, president and CEO of onsemi. "Our AI data center business accelerated rapidly, growing more than 30% quarter-over-quarter. Looking ahead, we remain confident in our fundamentals and the long-term opportunities driven by rising semiconductor content in automotive, industrial, and AI data center applications."
Separately, onsemi issued its guidance for the second quarter of 2026. Revenue is projected to land between $1.535 billion and $1.635 billion. The company forecasts GAAP gross margin between 37.9% and 39.9%, and non-GAAP gross margin between 38.0% and 40.0%. GAAP operating expenses are expected to range from $302 million to $317 million, with non-GAAP operating expenses between $287 million and $302 million. GAAP diluted EPS is projected at $0.60 to $0.72, while non-GAAP diluted EPS is expected to be $0.65 to $0.77.
