On Semiconductor Sees Q2 Sales Rising to $1.64B on Silicon Carbide Demand
On Semiconductor forecast second-quarter revenue of $1.54 billion to $1.64 billion, above the $1.53 billion consensus, and guided adjusted EPS of $0.65–0.77. In Q1 the company posted $1.51 billion in sales and $0.64 in adjusted EPS, driven by silicon carbide and AI data-center chip demand, yet shares fell 5%.
1. Q1 financial results
On Semiconductor posted $1.51 billion in revenue for the first quarter, surpassing the $1.49 billion market estimate, while adjusted EPS reached $0.64 versus the $0.60 forecast. AI data-center chip revenue more than doubled year-over-year and rose 30% sequentially, supporting the beat on earnings.
2. Q2 guidance and demand drivers
The company projects second-quarter revenue between $1.54 billion and $1.64 billion and adjusted EPS of $0.65–0.77, exceeding market estimates. Management cited a recovering automotive industry and robust demand for its silicon carbide power devices as key drivers.
3. Market reaction and outlook
Despite the strong results and guidance, shares declined about 5% in after-hours trading following an 88% year-to-date rally. Investors expressed caution about whether the automotive recovery momentum and valuation can be sustained into the back half of the year.