ON SEMICONDUCTOR CORP Earnings Summary — Q1 2026

• onsemi reported a net loss of $32.9 million in Q1 2026, marking a significant downturn from a profit of $453.7 million in the same quarter last year.
• Revenue of $1,513 million represents an 18.8% year-over-year decline, highlighting persistent cyclical headwinds in the semiconductor sector.
• Operating income turned negative at -$53.4 million, impacted by a spike in 'Other Operating Expenses' which rose to $329.3 million this quarter.
• The company continues to face a 'painful cyclical correction' after the 2021-2023 surge, with gross profit margins narrowing significantly.
• Research & Development expenses remain stable at $144.3 million, suggesting continued investment in Silicon Carbide and Intelligent Sensing despite the downturn.
• The 4.68% YoY revenue growth listed in the provided table appears to compare to a heavily depressed Q1 2025, but total dollar revenue is still well below 2024 levels.

Management is maintaining its strategy of exiting low-margin fabs through the 'Fab-Right' program, focusing on 300mm capacity and Silicon Carbide (SiC) technology to capture long-term EV and energy infrastructure demand.

Deteriorating

The transition from a profitable Q4 to an operating loss in Q1 2026 indicates that the cyclical bottom is proving deeper than previously anticipated, with rising operating expenses weighing on the bottom line.

The outlook remains challenged by inventory corrections and slowing EV demand, though long-term supply agreements (LTSAs) are expected to provide floor stability as the industry moves toward recovery.