ON Semiconductor Corporation stock research
FY2026 Q1
ON Semiconductor (ON) Gross Margin — Quarter Ended Apr 3, 2026
Revenue remained stable compared to the previous quarter, while gross profit increased and cost of revenue decreased, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher, gross profit significantly higher due to lower costs, resulting in a substantially stronger gross margin.
Gross margin takeaway
Quarter ended Apr 3, 2026 · FY2026 Q1
Revenue remained stable compared to the previous quarter, while gross profit increased and cost of revenue decreased, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher, gross profit significantly higher due to lower costs, resulting in a substantially stronger gross margin.
- The strongest observable margin driver is the reduction in cost of revenue, which improved from both the prior quarter and the same quarter last year. A concrete item to monitor is whether this cost trend persists in future periods.
- Sequentially, gross margin improved as cost of revenue declined while revenue was essentially flat. Year-over-year, gross margin strengthened substantially, driven by a lower cost base relative to higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.5%
Gross profit
$583.1M
Revenue
$1.5B
Cost of revenue
$930.2M
Quarter-over-quarter change
+2.5 pts
Year-over-year change
+18.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 4, 2025 | $1.5B | $551.9M | $916.8M | 37.6% |
| Oct 3, 2025 | $1.6B | $587.2M | $963.7M | 37.9% |
| Dec 31, 2025 | $1.5B | $551.0M | $979.1M | 36.0% |
| Apr 3, 2026 | $1.5B | $583.1M | $930.2M | 38.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.5 pts
Year-over-year change
Apr 4, 2025
+18.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue, which improved from both the prior quarter and the same quarter last year. A concrete item to monitor is whether this cost trend persists in future periods.
Sequentially, gross margin improved as cost of revenue declined while revenue was essentially flat. Year-over-year, gross margin strengthened substantially, driven by a lower cost base relative to higher revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| ON Semiconductor Corporation (ON) | 38.5% |