ON Semiconductor (NASDAQ:ON) shares climbed 7.6% in pre-market trading after the chipmaker reported second-quarter 2026 results that exceeded Wall Street forecasts and issued a stronger-than-expected outlook for the current quarter.
The company posted non-GAAP earnings of $0.74 per share, ahead of analyst expectations of $0.71, while revenue reached $1.60 billion, slightly above the consensus estimate of $1.59 billion
Sales also increased 9% compared with the same period last year. Margin Expansion Continues ON Semiconductor delivered another quarter of improving profitability, with its non-GAAP gross margin increasing by 80 basis points from the previous quarter to 39.3%. The latest result marked the fourth consecutive quarter of sequential gross margin expansion.
Cash generation also remained strong, with operating cash flow improving significantly and free cash flow reaching $425.4 million during the quarter. Third-Quarter Forecast Tops Consensus Investor sentiment received an additional boost after management issued guidance that exceeded market expectations. ON Semiconductor expects third-quarter revenue of between $1.65 billion and $1.75 billion, with the midpoint of $1.70 billion sitting above analysts’ consensus forecast of approximately $1.67 billion.