ON Semi Misses Revenue, Raises Outlook Despite Loss

ON Semiconductor reported a first-quarter net loss of $486.1 million, with revenue declining 22% year-over-year to $1.45 billion, which missed analyst expectations. Adjusted earnings per share came in at $0.55, slightly above estimates, but profits fell sharply across all major business segments. Despite these results, the company raised its full-year revenue and EPS outlook above previous guidance, citing disciplined cost management and a recently announced 9% workforce reduction. Shares have dropped about 34% year-to-date and 40% over the past 12 months but surged 24% last month, reflecting investor optimism about prospects in automotive, industrial, and AI markets. The company continues to face short-term underperformance compared to the broader semiconductor industry and numerous recent negative earnings revisions. The sustainability of recent stock gains will depend on future earnings performance and management's execution on growth plans.