Q2 Financial Performance: onsemi reported Q2 2025 revenue of $1.47 billion, exceeding guidance, representing a 1.6% increase from Q1. The Automotive segment saw a slight decline of 4%, but revenue for AI data centers (part of 'Other' category) nearly doubled year-over-year, indicating strong growth in this emerging market.

Market Dynamics and Demand Outlook: While there are signs of stabilization across end markets, particularly in Automotive, headwinds remain in regions outside of China like North America and Europe, attributed to cautious customer ordering behavior amid tariff uncertainties. However, the company expects Automotive revenue to rebound in Q3, driven by EV ramp-ups.

Gross Margin Expectations: The non-GAAP gross margin was 37.6%, flat from the prior quarter, and expected to remain between 36.5% and 38.5% in Q3. The company is challenged by underutilization charges and overall cautiousness, but anticipates improved margins as utilization rates increase with market recovery.