onsemi drops as Q1 results spark profit-taking ahead of guidance details
onsemi shares are sliding after the company reported Q1 2026 results with revenue of $1.513B and non-GAAP EPS of $0.64. Despite beating its own revenue midpoint, investors are selling on GAAP losses and focus on what comes next for margins and Q2 demand signals.
1) What’s driving the selloff today
onsemi (ON) is moving sharply lower as the market digests its first-quarter 2026 earnings release dated May 4, 2026. The company posted revenue of $1.513 billion and non-GAAP EPS of $0.64, alongside a GAAP loss per share of $0.08 and a 38.5% gross margin, creating a mixed read-through for investors who had bid the stock up into the print. (globenewswire.com)
2) The key numbers investors are reacting to
The report highlighted non-GAAP operating margin of 19.1% but a GAAP operating margin of -3.5%, underscoring the gap between operating performance and reported profitability. The release also emphasized $346 million of share repurchases in the quarter, equal to about 160% of free cash flow, which can support the stock over time but doesn’t eliminate near-term worries about the pace of recovery. (globenewswire.com)
3) Commentary and the market’s “next quarter” focus
Management said demand strengthened through the quarter and described the business as moving beyond a cyclical trough, while noting AI data center business growth of more than 30% sequentially. Even with that positive AI signal, a big down move suggests traders are focused on whether forward commentary and the next-quarter setup will justify the stock’s run-up and keep margins steady as end markets normalize. (globenewswire.com)