On August 5, onsemi reported Q2 revenue of $1.604 billion** , up 9% YoY and above analyst estimates. GAAP net income rose 33.2% to **$227 million , while free cash flow surged to $425.4 million – quadruple the year-ago level and representing 27% of revenue, up from 7%.
Gross margin reached 38.4% (GAAP) and 39.3% (non-GAAP), marking the fourth consecutive quarterly improvement. Operating margins climbed to 16.1% (GAAP) and 20.8% (non-GAAP).
The Power Solutions Group led growth with revenue of $829 million** , up 19% YoY and 13% sequentially – driven by high-voltage power chips for AI servers. AI data center revenue is now on track to **double to over $500 million in 2026 , up from $250 million in 2025, according to CEO Hassane El-Khoury. The company also guided Q3 revenue to **$1.65–1.75 billion** , above Street consensus.
Automotive and industrial remained the core business (over 50% of revenue), but AI server power is becoming a meaningful growth engine, now accounting for an estimated 8% of full-year revenue.
In July, onsemi announced a $7 billion acquisition of Synaptics , expanding its physical-AI hardware portfolio.
From ICgoodFind: AI server power is no longer a niche – it’s onsemi’s fastest-growing segment. With revenue doubling and margins rising, power semiconductor demand from data centers is now a structural tailwind.
