On Semiconductor Corporation

Apr 30, 2026 at 10:00 PM UTC

ON Semiconductor: Q1 Financial Results (47c2ca2d 07d7 4d18 aa0b 87cc657b1ef4)

Quarterly Investor Presentation

First Quarter 2026

Financial & Business Update

Exceeded the midpoint of guidance for revenue and non-GAAP EPS

AI data center revenue grew

>30% sequentially and more than doubled year-over-year

Year-over-year non-GAAP operating income growth outpaces revenue growth by 2x

Non-GAAP gross margin expanded sequentially by >30 bps - 3rd consecutive quarter of gross margin expansion

On path to recovery with improving order trends and backlog visibility

Returned approximately 160% of free cash flow to shareholders

Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation.

Q1'26 Highlights

Q1'26 Non-GAAP Financial Performance

Revenue

Gross Margin

Operating Margin

Diluted EPS

LTM FCF

Margin

$1.51B

-1% Q/Q

38.5%

+32 bps Q/Q

19.1%

-66 bps Q/Q

$0.64

Flat Q/Q

19.5%

-155 bps Y/Y

Automotive

Industrial

Other

$797m Revenue

$417m Revenue

$299m Revenue

0.1% Q/Q

5.7% Q/Q

3.3% Q/Q

Strategic Announcements

onsemi Powers Sineng Electric's Advanced Solar and Energy Storage Solutions

onsemi and NIO Expand Strategic Collaboration to Accelerate Next-Generation 900V EV Platforms

onsemi and Geely Expand Strategic Collaboration to Elevate the Driving Experience

View all press announcements at:

onsemi.com/company/news-media/press-announcements

Q2'26 Guidance Highlights

Revenue

GAAP:

$1,535 to $1,635m

Non-GAAP:

$1,535 to $1,635m

GAAP: 37.9% to 39.9%

Non-GAAP: 38.0% to 40.0%

OPEX

GAAP:

$302 to $317m

Non-GAAP:

$287 to $302m

EPS

GAAP:

$0.60 to $0.72

Non-GAAP:

$0.65 to $0.77

About onsemi

onsemi at a glance

Our Mission

We push innovation to create intelligent power and sensing technologies that solve the most challenging customer problems

Our employees are inspired to go above and beyond to increase stakeholder value through high quality and high value products and services

$6.0B

2025 Revenue

24%

Free Cash Flow Margin

1.4x

Operating

8.6x

Increase in Free Cash Flow2

25K+

Portfolio

>9K

Customers across end-markets

Manufacturing

~23K

Employees Worldwide3

Income Growth1

SKUs3

Sites in 9

Countries3

2019 to 2025
Certain reclassifications within the statements of cash flows have been made to 2019 free cash flow to conform to current period presentation
As of year-end 2025

Intelligent Power Solutions

Double down on $36B1 TAM with >70% gross margin
Deliver system-level value with gate drivers and controllers
Expand leadership to full Power Tree solutions

Analog and Mixed-Signal ICs

Leading FET and IGBT supplier with growing market share
Expanding BOM coverage with new products
Attaching AI data center power in tray, rack and UPS

Silicon Power - IGBT, FET

Wide Bandgap - SiC, GaN, VGaN

High efficiency and longer-range -Superior EliteSiC device technology
High power density and less weight for the most efficient interconnect and direct cooling - Package technology
Lower cost to deliver same power -Drive switch and SmartFET technologies
2
onsemi Advantage
1
Supply
Best-in-class integrated modules, discrete package solutions and known good die
Superior Technology Die + Package = THE most optimal solution on the planet
Scale
3
High-quality, high-volume manufacturing
Scope
4
Suite of sustainable solutions from energy generation to consumption
1. IHS-Omdia
See slide 26 for notes
© onsemi 2026 | Public Information | 10

Intelligent Sensing Solutions
The onsemi Advantage
Solution Enablement
- Devware
- Ref Designs
- Ecosystem Automotive & Industrial Focus

Market leader in high-

Decades of Innovation

Installed base of

>600m automotive sensors

Superior Technology

High Dynamic Range
Industry-leading 8 megapixel

performance image sensors

See slide 26 for notes

In-Cabin Solutions

Driver Monitoring Systems (DMS)
Occupancy Monitoring Systems (OMS)

Automotive Solutions

ADAS and Autonomous Driving Solutions

Front Sensing Systems
Surround Sensing Systems
Autonomous Parking Assist
Autonomous Driving

Viewing Solutions

Surround View Systems (SVS)
Camera Monitoring Systems (CMS, e-mirror)

Vehicle Electrification xEV

HEV / PHEV / BEV

Bi-Directional On-Board Charger
Traction Inverter
HV-LV DC-DC Converter
48V Transition
48V Starter Generator
48V-to-LV DC-DC Converter
48V Zonal Modules

>500 devices at $1,600+ per vehicle

Body Electronics & LED

Lighting, Safety and Security

HVAC
Body / Zonal Control Module
Electric Power Steering
Electronic Braking
Advanced Lighting Systems
Tire Pressure Monitoring Systems
In-Vehicle Networking/Software-Defined Vehicle (10BASE-T1S)

Driving Innovation and Growth in Industrial

Factory Automation

Robotics, industrial and warehouse automation, humanoids

Aerospace, Defense, Security

Satellites, space exploration, weapon systems, commercial aviation

Traditional Industrial

Power tools, HVAC, building automation, motor control

Medical

Continuous glucose monitors, hearing health, imaging equipment, diagnostic

Energy Infrastructure Power generation, energy storage systems, EV charging stations

HVDC Bus Bar

800VDC

Hot Swap Hot Swap

800VDC

HV DC HV DC

DC DC

12 / 6 VDC

Multiple Blade Trays per Rack

VCore GPU

VCore 0.8VDC

DC DC

AI Compute Tray

Utility Grid

35KVAC

800VDC

PDU

800VDC

2030

600kW-1MW

onsemi opportunity

~$115K per rack

Compute Rack

2030: Next generation is 800V high voltage DC, opening opportunities for WBG content, incl. SiC MOSFET, SiC JFET and GaN

DC-DC

ESS

AC DC

SST

Power Rack

Site Power

HV BBU

BESS

HV CBU

54VDC Bus Bar

onsemi's addressable content increases as power density of AI data center racks increases
onsemi has the most comprehensive technology portfolio to address increasing power density - Si, SiC FET, SiC JFET, GaN and vGaN, addressing the complete power tree from 0.8V to 800V
onsemi's unique ability to address both high and low voltages accelerates long-term growth as the AI data center power tree compresses with increasing power density
© onsemi 2026 | Public Information | 14

Source: onsemi estimates based on current market projection
AI Data Center: Power Delivery from the Grid to the Core
Utility Grid
20kVAC
480VAC
480VAC
Uninterruptible
Power Supply
Today
120kW
onsemi opportunity
~$15K per rack
Data Center Rack
Today: Currently at Low Voltage 54V Low Voltage DC Bus
AI Compute Tray
Point of Load
DC DC
Smart Power Stage Multiphase Controllers
DC DC
DC
0.8VDC
VCore
12VDC
IBC
54VDC
54VDC Hot Swap
GPU
VCore
Multiple Blade Trays per Rack
Intermediate
Bus Converters
Hot Swap
C
54VDC
230VAC
PDU
Power Supply
AC DC

HV PSU

AC DC AC

UPS

Site Power

BBU

CBU

Transforming Analog & Mixed-Signal Leadership into Sustainable Growth

$36B1 Addressable Market Across High-Growth Segments

Automotive (EV, ADAS, zonal architecture)
Industrial automation
AI data center power delivery
Advanced sensing (CGM, positioning, connectivity)
Aerospace, Defense & Security
Industry-Leading Technology
65nm BCD process with 1-90V operating range
High-performance analog, integrated power management
Unmatched system integration across subsystems
Accelerated Time-to-Market
Spec Silicon in 6-9 months
Centralized, reusable IP library
Rapid expansion of next-gen product families
Proven Momentum & Expansion Roadmap
Multiple Treo-based products already sampling
Broad roadmap across power, sensing, communications
Scalable platform enabling margin-accretive portfolio growth
© onsemi 2026 | Public Information | 15
1. IHS-Omdia

Vertical GaN: Investable Edge in High Power Density

AI Data Centers

Smaller 800V power converters

higher rack compute density & lower conversion loss

Renewable Energy

Higher-efficiency solar and wind power conversion

better yield per installed watt

Electric Vehicles

Faster charging & smaller, more efficient inverters

range & weight benefits

Aerospace, Defense & Security

Compact, rugged, reliable power systems for mission-critical platforms

Leading in Scale

onsemi is first to scale vertical GaN; 700V/1,200V devices already sampling to early-access customers with volume production targeted for late 2026.

Breakthrough

GaN-on-GaN vertical current flow delivers higher current density, higher voltage handling and faster switching than silicon and SiC

translating to materially higher power density at high frequency.

Manufacturing Excellence

Built on onsemi proprietary GaN processes in a 66K sq ft facility in Syracuse, NY with 20K sq ft cleanroom - leads to reduced defects and increased reliability.

Power of the Portfolio Driving onsemi Growth

AI Data Center1

$12.2B

40% CAGR

Electric Vehicles2

$26.3B

13% CAGR

Energy Infrastructure2

$9.6B

19% CAGR

$64B TAM

by 2029

Advanced Safety2

$3.7B

11% CAGR

EV Charging2

$0.7B

14% CAGR

Factory Automation2

$11.3B

7% CAGR

AI data center based on onsemi projections, 2025-2029
Based on market projections, 2024-2029 See slide 26 for notes

Accelerating Shareholder Value

Revenue Growth

Levered to accelerating demand for power and sensing

Aligned to secular trends in Automotive, Industrial and AI Data Center

Gross Margin

Significant gross margin expansion to 53%

Fab Right: optimize manufacturing network for cost efficiencies. Maximize utilization with flex to external capacity

Ramping new and differentiated products

Free Cash Flow

Free Cash Flow margin expansion to 2a5s-3i0n%creasingly suboptimal:

Capital efficiency through high-ROIC investments and working capital management

Shareholder

Shareholder-friendly capital allocation policy

reasingly suboptimal:

Capital Returns

Return 100% of Free Cash Flow through share repurchase

$6.0B share repurchase authorization

Accelerating the Financial Model

Revenue

Gross Margin

Operating Expenses

Operating

Margin CapEx

Free Cash

Flow

2025

Actuals

$6.0B 38.4%

19.8%

18.6%

5.7%

23.7%

Long-Term Target

10-12% CAGR

53%

13%

40%

Mid-single digit range

25-30%

Grow at ~3x the semiconductor industry
Mix shift, new products & Treo platform ramp at accretive margins
Optimize cost through Fab Right
Invest in R&D for long-term growth
Digital First - embrace new technologies & data analytics
Grow Operating Income faster than Revenue
Market success drives investments
High-ROIC brownfield investments
Return 100% of Free Cash Flow through share repurchases
© onsemi 2026 | Public Information | 19

Appendix
© onsemi 2026 | Public Information | 20
© onsemi 2026 | Public Information

Non-GAAP Financial Performance
Revenue ($ millions)
2025
Actual
5,995.4
Q1'26
Actual
1,513.3
Q2'26
Guide
1,535 to 1,635
Long-Term Target
10-12% CAGR
Q1'26 revenue exceeded the midpoint of guidance
Gross Margin
38.4%
38.5%
38.0% to
40.0%
53%
- Q1'26 gross margin up 32 bps Q/Q due to operational improvements and Fab Right initiatives
  Operating Expenses
  ($ millions)
  1,185.4
  293.7
  287 to 302
  13%
- Tight cost control with investments in differentiated products
  Operating Margin
  18.6%
  19.1%
  ---
  40%
  - Expanding operating margins reflect structural cost improvements
    CapEx ($ millions)
    341.2
    21.9
    25 to 35
    Mid-single digit range
Achieved significant reduction in capital intensity in Q1
Remain committed to mid-single digit percentage range
LTM Free Cash Flow
23.7%
19.5%
---
25-30%
- Share repurchase target of 100% of FCF
  Earnings per Share
  $2.35
  $0.64
  $0.65 to $0.77
  ---
  - Strong Operating leverage driving earnings growth

	GAAP	Special Items**	Non-GAAP***
Revenue	$1,535 to $1,635 million	-	$1,535 to $1,635 million
Gross Margin	37.9% to 39.9%	0.1%	38.0% to 40.0%
Operating Expenses	$302 to $317 million	$15 million	$287 to $302 million
Other Income and Expense (including interest), net Diluted Earnings Per Share Diluted Shares Outstanding *	($6 million) $0.60 to $0.72 401 million	- $0.05 7 million	($6 million) $0.65 to $0.77 394 million

Q2'26 Guidance

* Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, and the 0.50% Notes, respectively. At an average stock price per share between $52.97 and

$74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, and the 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher.

** Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary.

These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.

*** We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.

Notes to Q1'26 Guidance

GAAP to Non-GAAP Reconciliation ($ millions)	Q1'25	Q2'25	Q3'25	Q4'25	FY 2025	Q1'26
Reconciliation of GAAP to Non-GAAP Gross Margin:
GAAP Gross Margin	20.3%	37.6%	37.9%	36.0%	33.1%	38.5%
a) Amortization of intangible assets	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
b) Restructuring-related inventory and other charges	19.6%	-0.1%	0.0%	2.1%	5.2%	(0.1)%
c) Amortization of fair market value step-up of inventory	-	0.1%	-	-	-	-
Non-GAAP Gross Margin	40.0%	37.6%	38.0%	38.2%	38.4%	38.5%

Reconciliation of GAAP to Non-GAAP Operating Expenses:
GAAP Operating Expenses	$ 867.5	$ 358.5	$ 322.8	$ 350.9	$ 1,899.7	$ 636.5
a) Amortization of intangible assets	(11.4)	(11.0)	(11.2)	(10.8)	(44.4)	(10.5)
b) Restructuring, asset impairments and other, net	(539.3)	(49.2)	(19.6)	(58.8)	(666.9)	(329.3)
c) Third party acquisition and divestiture-related costs	(2.3)	(0.6)	(0.8)	(0.6)	(4.3)	(1.4)
d) Adjustments to contingent consideration	-	-	-	1.3	1.3	(1.6)
Non-GAAP Operating Expenses	$ 314.5	$ 297.7	$ 291.2	$ 282.0	$ 1,185.4	$ 293.7

Reconciliation of GAAP to Non-GAAP Operating Income:
GAAP Operating Income	$ (573.7)	$ 193.4	$ 264.4	$ 200.1	$ 84.2	$ (53.4)
a) Amortization of intangible assets	12.7	12.3	12.4	12.0	49.4	11.7
b) Restructuring, asset impairments and other, net	539.3	49.2	19.6	58.8	666.9	329.3
c) Third party acquisition and divestiture-related costs	2.3	0.6	0.8	0.6	4.3	1.4
d) Restructuring-related inventory and other charges	283.4	(1.9)	-	32.1	313.6	(1.0)
e) Amortization of fair market value step-up of inventory	-	1.2	0.6	0.6	2.4	-
f) Adjustments to contingent consideration	-	-	-	(1.3)	(1.3)	1.6
Non-GAAP Operating Income	$ 264.0	$ 254.8	$ 297.8	$ 302.9	$ 1,119.5	$ 289.6

Reconciliation of GAAP to Non-GAAP Operating Margin:
GAAP Operating Margin	(39.7)%	13.2%	17.0%	13.1%	1.4%	(3.5)%
a) Amortization of intangible assets	0.9%	0.8%	0.8%	0.8%	0.8%	0.8%
b) Restructuring, asset impairments and other, net	37.3%	3.3%	1.3%	3.8%	11.1%	21.8%
c) Third party acquisition and divestiture-related costs	0.2%	-	0.1%	-	0.1%	0.1%
d) Restructuring-related inventory and other charges	19.6%	-0.1%	-	2.1%	5.2%	(0.1)%
e) Amortization of fair market value step-up of inventory	-	0.1%	-	-	-	-
f) Adjustments to contingent consideration	-	-	-	-	-	0.1%
Non-GAAP Operating Margin	18.3%	17.3%	19.2%	19.8%	18.6%	19.1%

Free Cash Flow:
LTM Free Cash Flow	$ 1,402.3	$ 1,287.3	$ 1,355.6	$ 1,418.6	$ 1,418.6	$ 1,181.1
LTM Revenue	6,665.3	6,398.8	6,187.8	5,995.4	5,995.4	6,063.0
LTM Cash Flow Margin	21.0%	20.1%	21.9%	23.7%	23.7%	19.5%

GAAP to Non-GAAP Reconciliation ($ millions, except share count and EPS)	Q1'25	Q2'25	Q3'25	Q4'25	FY 2025	Q1'26

GAAP Net Income Attributable to ON Semiconductor Corporation	$ (486.1)	$ 170.3	$ 255.0	$ 181.8	$ 121.0	$ (33.4)

a) Amortization of intangible assets	12.7	12.3	12.4	12.0	49.4	11.7
b) Restructuring, asset impairments and other, net	539.3	49.2	19.6	58.8	666.9	329.3
c) Third party acquisition and divestiture-related costs	2.3	0.6	0.8	0.6	4.3	1.4
d) Actuarial gains (losses) on pension plans and other pension benefits	-	-	-	(12.9)	(12.9)	-
e) Adjustment of income taxes	(120.0)	(10.4)	(32.1)	(14.5)	(177.0)	(56.5)
f) Restructuring-related inventory and other charges	283.4	(1.9)	-	32.1	313.6	(1.0)
g) Amortization of fair market value step-up of inventory	-	1.2	0.6	0.6	2.4	-
h) Adjustments to contingent consideration	-	-	-	(1.3)	(1.3)	1.6

Non-GAAP Net Income Attributable to ON Semiconductor Corporation	$ 231.6	$ 221.3	$ 256.3	$ 257.2	$ 966.4	$ 253.1

Reconciliation of GAAP to Non-GAAP Diluted Shares Outstanding:
GAAP Diluted Shares Outstanding	421.3	414.9	408.0	402.3	411.8	394.1
Less: dilutive shares attributable to convertible notes	-	-	-	-	-	-
Add: dilutive shares attributable to convertible notes	0.4	-	-	-	-	1.9
Non-GAAP Diluted Shares Outstanding	421.7	414.9	408.0	402.3	411.8	396.0

Non-GAAP Diluted Earnings Per Share:
Non-GAAP net income for diluted earnings per share	$ 231.6	$ 221.3	$ 256.3	$ 257.2	$ 966.4	$ 253.1
Non-GAAP diluted shares outstanding	421.7	414.9	408.0	402.3	411.8	396.0
Non-GAAP Diluted Earnings Per Share	$ 0.55	$ 0.53	$ 0.63	$ 0.64	$ 2.35	$ 0.64

Intelligent Power Solutions (Slide 10)

onsemi estimates based on current market projections.
IHS-Omdia
Intelligent Sensing Solutions (Slide 11)
onsemi estimates based on current market projections.
Power of the Portfolio Driving onsemi Growth (Slide 17)
onsemi estimates based on current market projections.
onsemi AI data center power TAM estimate includes power infrastructure, power supply unit, battery backup unit, hot swap, intermediate bus converter, vCore and other products.
Energy infrastructure TAM includes energy conversion, storage, distribution and generation.
Factory automation TAM includes human-machine interface, motor drives and other manufacturing and process.
Omdia: Power Semiconductors in Automotive Report - 2025 Analysis
Yole: Automotive Imaging 2025 Report
Omdia: Industrial Semiconductor Market Tracker - 2Q25 Analysis

Notes & Sources

onsemi.com

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