onsemi's Financial Transformation Gives Way to a New Era of Growth

九月 16, 2026

Company outlines path to faster revenue growth, expanding margins and more than doubling free cash flow by 2030

After spending the last five years reshaping its business, onsemi is entering a new phase focused on monetizing its investments and translating technology leadership into higher margins, faster earnings growth and significantly greater cash generation.

Speaking at onsemi Investor Day 2026, Chief Financial Officer Thad Trent detailed how years of investment have positioned the company to deliver a substantially stronger financial profile through the end of the decade.

“Our objective over the past five years was not simply to grow, but to build a higher-quality business with stronger earnings power,” Trent said. “Today, we are operating from a fundamentally different position than we were several years ago, with a broader market opportunity, a more differentiated portfolio and a financial model designed to scale efficiently.”

Watch the keynote here: Turning Technology Leadership into Durable Financial Performance Thad Trent, Executive Vice President and CFO

Building a Bigger Business by Building a Better One

onsemi has fundamentally reshaped and strengthened the foundation of its business. Over the last five years, the company expanded non-GAAP gross margin from roughly 26% to more than 40%, nearly tripled non-GAAP operating margin and more than doubled free cash flow, all while exiting approximately $900 million of non-core revenue. As part of its Fab Right strategy, the company also created a more focused manufacturing footprint. At full utilization, the streamlined footprint is expected to maintain similar production capacity at approximately 17% lower cost. Simultaneously, onsemi invested roughly $8.7 billion to strengthen its technology portfolio and manufacturing efficiency.

Through these strategic initiatives, onsemi expanded its addressable market by an estimated $81 billion and strengthened its position in attractive secular growth markets across automotive, industrial and AI data center applications.

From Investment Mode to Earnings Power

With the majority of its manufacturing optimization now behind it, onsemi is entering a new phase where growth is expected to be driven more by operating leverage, product mix improvement and expanding participation in some of the semiconductor industry's fastest-growing markets. The result is a company positioned to translate years of transformation into accelerating revenue, operating leverage and profitability.

Through a combination of manufacturing optimization, higher factory utilization and new high-value product introductions, the company expects non-GAAP gross margin to expand from an estimated 40% in 2026 to 53% by 2030. Trent pointed to differentiated platforms such as Treo, Embedded Power Platform (EPP) and vertical gallium nitride (vGaN) as key contributors to future margin expansion. Designed to solve increasingly complex customer challenges at the system level, these platforms enable onsemi to capture a greater portion of the value it creates by moving beyond individual components toward higher-value solutions.

onsemi’s financial model is designed to ensure gross margin grows faster than revenue, with operating income expected to grow faster still. The company expects gross profit and operating income to grow significantly faster than revenue as years of technology and manufacturing investments begin to scale. Trent outlined a path for gross profit dollars to grow approximately 22% annually through 2030, while operating income dollars are expected to grow approximately 30% per year, more than twice the pace of projected revenue growth through 2030.

The same dynamic is expected to accelerate cash generation. onsemi expects free cash flow to more than double by 2030, reaching approximately $3.5 billion annually and representing free-cash-flow margins of 30% to 35%. With capital expenditures expected to remain around 5% of revenue even as the business grows, the company is entering a more capital-efficient phase where an increasing share of growth translates directly into earnings and free cash flow.

“The value of the transformation extends beyond improved operational performance having fundamentally changed the economics of the business. The combination of portfolio investments, manufacturing optimization and operating discipline has created a company capable of generating higher margins, stronger cash flow and greater operating leverage,” said Trent. “Having spent the past five years investing for the future, we are now focused on monetizing those investments through execution and converting a larger market opportunity into sustained growth and long-term shareholder returns.”

Multiple Growth Engines, One Technology Foundation

AI is expected to be one of onsemi's fastest-growing opportunities over the next several years. Trent highlighted the company's expectation that AI data center revenue will grow approximately 50% annually through 2030, outpacing projected industry growth by roughly 10 percentage points. The company expects AI data center revenue to more than double in 2026, more than double again in 2027 and exceed $2.5 billion annually by 2030.

While artificial intelligence has emerged as one of onsemi’s fastest-growing opportunities, Trent emphasized that the company’s growth strategy is not tied to a single market. Instead, onsemi is positioned at the intersection of three powerful technology inflections: AI, electrification and autonomy.

As AI moves from the digital world into the physical world, vehicles are becoming increasingly autonomous, factories are becoming more intelligent, and robots and machines are gaining the ability to sense, decide, act and adapt to their surroundings. At the same time, these systems are demanding dramatically higher levels of energy efficiency and power density.

Together, these trends are increasing demand for the power and sensing technologies that form the foundation of onsemi's portfolio. AI infrastructure, electrified vehicles and autonomous systems require more intelligent power and sensing capabilities, many of the industry’s fastest-growing opportunities are moving toward areas where onsemi has built longstanding technology leadership.

Rather than viewing automotive, industrial and AI infrastructure as separate markets, onsemi sees them as connected opportunities driven by the same underlying technology needs. The company’s investments in intelligent power and sensing can be leveraged across multiple end markets, expanding content per system while creating opportunity in some of the largest and fastest-growing technology transitions underway. With the ability to scale a common technology foundation across a market opportunity expected to reach $213 billion by 2030, onsemi is ideally positioned to pursue a larger and more diversified growth opportunity.

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Caution Regarding Forward-Looking Statements

This press release includes “forward-looking statements,” as that term is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this press release could be deemed forward-looking statements, particularly statements about onsemi’s long term financial plans and growth strategy; forecasts about the pace, scale and direction of technological change and its impact on onsemi’s total addressable market opportunity; statements about onsemi’s ability to capitalize on such an opportunity; and the potential impact of each of the foregoing on onsemi’s operating results and financial condition. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “sees,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “targets,” “should,” “would” or similar expressions or by discussions of strategy, plans, expectations, projections or intentions. All forward-looking statements in this document are made based on onsemi’s current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect onsemi’s future results or events are described under Part I, Item 1A “Risk Factors” in the 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 9, 2026 (the “2025 Form 10-K”) and from time to time in onsemi’s other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. onsemi assumes no obligation to update such information, which speaks only as of the date made, except as may be required by law.

Investing in onsemi’s securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this press release, onsemi’s 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to onsemi’s securities. If any of these trends, risks or uncertainties actually occurs or continues, onsemi’s business, financial condition or operating results could be materially adversely affected, the trading price of onsemi’s securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to onsemi or persons acting on onsemi’s behalf are expressly qualified in their entirety by this cautionary statement.

Use of Non-GAAP Financial Measures

This press release contains historical non-GAAP financial measures including, among others, gross margin, operating margin, and free cash flow. For a reconciliation of these non-GAAP financial measures to GAAP, please see the Appendix to the Investor Day 2026 presentation, which is available here. This press release also contains forward-looking non-GAAP financial measures, some of which are adjusted for certain special items. These special items are out of onsemi’s control and could change significantly from period to period. As a result, onsemi is not able to reasonably estimate and separately present the individual impact of these special items, and is similarly unable to provide a reconciliation of the forward-looking non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet, and statement of cash flows prepared in accordance with GAAP.

onsemi believes these non-GAAP measures provide important supplemental information to investors. onsemi uses these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, onsemi does not, and cautions that readers should not, rely on non-GAAP financial measures alone as measures of our performance. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.