ON Semiconductor drops 4% as investors digest Q1 results and big restructuring charges
ON•ON Semiconductor slid about 4% on May 5, 2026, a day after reporting Q1 2026 results and issuing Q2 revenue guidance of $1.535–$1.635 billion with non-GAAP EPS of $0.65–$0.77. Investors focused on the quarter’s GAAP loss and sizable restructuring/impairment charges, sparking profit-taking after a sharp run-up.
1) What’s moving the stock today
Shares of ON Semiconductor (ON) are down about 4.19% to roughly $98.75 on Tuesday, May 5, 2026, as the market digests the company’s Q1 2026 earnings update released after Monday’s close. Despite management framing the quarter as moving beyond a cyclical trough and pointing to sequential acceleration in AI data center demand, the stock is seeing a sell-the-news reaction with investors zeroing in on the quality of earnings and below-the-line items.
2) Earnings snapshot and guidance in focus
Onsemi reported Q1 2026 revenue of $1.513 billion and non-GAAP EPS of $0.64, alongside non-GAAP gross margin of 38.5%. For Q2 2026, the company guided revenue to $1.535–$1.635 billion and non-GAAP EPS to $0.65–$0.77, implying a sequential lift from Q1. Even with upbeat forward commentary, the market reaction suggests investors are demanding cleaner operating leverage and more visibility into a durable recovery across end markets.
