5 Must-Read Analyst Questions From onsemi's Q2 Earnings Call

onsemi’s second quarter was marked by a negative market reaction, reflecting investor concerns over operational execution and profitability trends. Management cited ongoing softness in Europe and North America automotive markets and highlighted the impact of portfolio rationalization and segment repositioning as key factors behind the year-over-year revenue decline. CEO Hassane El-Khoury described demand as stabilizing yet cautioned that “customers are being cautious,” and noted that the company’s structural changes, including workforce restructuring and manufacturing capacity reduction, are intended to create a more resilient business model.

Is now the time to buy ON? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From onsemi’s Q2 Earnings Call

• Ross Seymore (Deutsche Bank) asked about the pace of recovery and secular growth drivers. CEO Hassane El-Khoury noted “stabilization” but said, “I remain cautious in the way we run the company until we see that stabilization turn into a better foundation for a recovery.”
• Vivek Arya (Bank of America Securities) questioned the slow automotive recovery versus peers. El-Khoury pointed to regional weakness outside China and the impact of portfolio changes, stating, “We hit the bottom in the second quarter. Our expectation in Q3 will be growth.”
• Blayne Peter Curtis (Jefferies) inquired about the ISG repositioning and revenue impact. El-Khoury explained the strategic focus on machine vision and higher-value applications, while CFO Thad Trent estimated a $50-100 million revenue impact in 2026.
• Christopher Brett Danely (Citi) focused on silicon carbide margin dynamics. Trent clarified that silicon carbide margins are below average due to underutilization but should improve as volumes ramp and manufacturing is optimized.
• Nathaniel Quinn Bolton (Needham & Company) asked about manufacturing utilization and margin recovery. Trent said post-impairment full utilization is now “kind of in the low 90% range,” providing a clear path to recapturing 900 basis points of underutilization charges over time.

Catalysts in Upcoming Quarters

Our analyst team will be closely watching (1) whether automotive demand in North America and Europe stabilizes or continues to lag, (2) the pace of margin improvement as manufacturing utilization increases and portfolio exits conclude, and (3) adoption milestones for new intelligent power and sensing products, especially in AI data centers and electric vehicles. Execution on the Treo platform and further progress in China’s electric vehicle market will also be key signposts.

onsemi currently trades at $49.75, down from $56.84 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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