ON Semiconductor’s shares declined modestly by 0.3% following Q1 results, reflecting a market assessment of largely in-line execution without significant surprises in guidance or outlook.

• Q1 revenue reached $1.51 billion, and non-GAAP EPS was $0.64, both near the midpoint of guidance.
• Gross margin expanded sequentially to 38.5%, marking the third consecutive quarter of improvement.
• AI data center revenue grew more than 30% sequentially, indicating strong momentum in this high-growth segment.
• Automotive revenue in China grew year over year despite a 6% decline in the domestic passenger vehicle market.
• The company maintains a cautious outlook with no explicit upgrades or cuts to guidance, consistent with a view that the recovery cycle has bottomed.