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ON Semiconductor (ON) Q3 2026 Earnings Report

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CH:ON Q3 2026 EPS Results

Actual EPS
CHF 0.75
Consensus EPS
CHF 0.73
Beat/Miss
Beat by +CHF 0.02
One Year Ago EPS
CHF 0.53

CH:ON Q3 2026 Revenue Results

Actual Revenue
CHF 1.44B
Expected Revenue
CHF 1.42B
Beat/Miss
Beat by +CHF 14.25M
YoY Revenue Growth
+11.05%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/02/2026
Time
After Close
Conference Call
Monday, November 2, 2026
CH:ON Upcoming Earnings

ON Semiconductor's next earnings date is estimated for February 8, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

CH:ON Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 02, 2026|% Change Since:3.84%|
Earnings Call Sentiment|Positive

The call was strongly positive, supported by Q3 revenue and earnings above guidance, accelerating AI data center growth, improving industrial demand, automotive content gains, expanding margins, strong free cash flow and a raised 2030 AI data center revenue target. The principal challenges were temporary supply constraints, deferred automotive inventory replenishment, an expected high-single-digit automotive revenue decline in Q4 and flat near-term utilization. Highlights significantly outweighed the lowlights.

Company Guidance

For the fourth quarter, onsemi anticipates revenue in the range of $1.715 billion to $1.815 billion, representing above seasonal growth of 2.5% sequentially at the midpoint; automotive revenue is expected to decrease high single-digit percentage points, industrial revenue to increase low double-digit percentage points, AI data center revenue to increase mid-teens percentage points, and the other revenue segment to increase high teens percentage points. Non-GAAP gross margin is expected to be between 41.5% and 43.5%, including approximately $8 million in stock-based compensation, non-GAAP operating expenses between $303 million and $318 million, including approximately $34 million in stock-based compensation, non-GAAP other income approximately $27 million, favorable, a non-GAAP tax rate of 15%, non-GAAP diluted share count of approximately 392 million shares, non-GAAP earnings per share in the range of $0.95 to $1.07, and capital expenditures in the range of $40 million to $50 million. Full-year capital expenditure is expected to be approximately 2% of revenue, 2027 capital expenditure is expected to be about 5%, AI data center revenue is expected to reach approximately $620 million in 2026, increasing 140% year-over-year, and in 2027 is expected to double off a higher base; automotive is expected to resume growth in 2027 in line with the long-term target, described as high single digit over SAAR.

  • Q3 Revenue and Earnings Exceeded Guidanceonsemi delivered third-quarter revenue of $1.72 billion, non-GAAP gross margin of approximately 41.2%, and non-GAAP diluted earnings per share of $0.90, all above the midpoint of guidance. Revenue was up 7% sequentially and 11% year-over-year.
  • Operating Leverage and Margin ExpansionNon-GAAP gross margin expanded by 190 basis points quarter-over-quarter to 41.2%, marking the fifth consecutive quarter of expansion. Management attributed the improvement to utilization improvements earlier in the year and favorable mix toward new products, with earnings growth significantly outpacing revenue growth.
  • Strong Cash Generation and LiquidityCash from operations was $516 million and free cash flow was $489 million, or 28% of revenue. Cash and short-term investments were approximately $4.4 billion, total liquidity was $5.9 billion, and $1.5 billion remained undrawn on the revolver.
  • AI Data Center Growth AcceleratedThird-quarter AI data center revenue grew 39% sequentially and 175% year-over-year to $180 million. onsemi now expects approximately $620 million of AI data center revenue in 2026, an increase of 140% year-over-year, and continues to expect revenue to double in 2027 off the higher 2026 base.
  • Expansion Across the AI Power TreeThe company began volume shipments into multiple marquee platforms, including Google, using silicon carbide and silicon MOSFETs for power supply units and 54-volt to 12-volt applications. onsemi is addressing power conversion from 800 volts through 54-volt, 12-volt and 6-volt rails using silicon, silicon carbide and vertical GaN technologies.
  • New AI Data Center Platform Demonstrations and WinsAt the OCP Summit, onsemi showcased an 800-volt to 6-volt solution using vertical GaN, gate drivers and MOSFETs. Its silicon carbide JFET portfolio is already designed in and contributing to data center revenue, while EPP is sampling to alpha customers across AI data center, automotive and industrial markets.
  • Ferric Acquisition Expands Integrated Voltage Regulator Capabilitiesonsemi announced the acquisition of Ferric for $600 million plus up to $175 million in earn-outs tied to revenue milestones. Ferric provides integrated voltage regulator technology combining controllers, power switches, capacitors and magnetics in a thin package, with industry-leading efficiency and transient response and best-in-class z-height, according to management.
  • AI Data Center Revenue Target RaisedThe Ferric acquisition raised onsemi's 2030 AI data center revenue target by $500 million, or 20%, to more than $3 billion. Management said Ferric is expected to be accretive to growth and gross margin targets, with EPS accretion at scale and no meaningful near-term financial impact.
  • Industrial Revenue Growth and AI Halo EffectIndustrial revenue was $467 million, up 10% sequentially and 9% year-over-year, driven by strength in energy infrastructure, factory automation and the broader industrial market. Management said the AI halo effect, including demand from the grid to AI data centers, was stronger than expected and reflected end demand rather than inventory replenishment.
  • Industrial Design Wins and Efficiency Platformonsemi expanded hybrid EliteSiC and IGBT module wins with lead customers including Sungrow and Sineng, driven by its 99.3% efficiency platform. The company also reported multiple new design wins with leading U.S. humanoid makers across power, connectivity and sensing.
  • Robotics, Drones and Sensing OpportunitiesDemand from first-person-view drones increased shipments of onsemi's 2-megapixel and 8-megapixel Hyperlux image sensors, and the company is engaged with more than 10 leading drone manufacturers. Its indirect time-of-flight technology is advancing toward 1-millimeter depth resolution, described as up to 10x better than competing solutions.
  • Automotive Content Gains and Platform Winsonsemi continued to secure automotive design wins across all regions, with content per vehicle expanding to as much as $2,000 as architectures evolve. The company reported North American EV traction inverter and onboard charger wins, European power portfolio wins tied to 48-volt zonal architectures, and new 1,200-volt silicon carbide traction inverter wins at NIO and Geely Zeekr.
  • Broad Silicon Carbide DiversificationChina remains a strong source of silicon carbide EV demand, while North American AI data centers are contributing new silicon carbide growth. Silicon carbide demand is becoming more diversified by application, customer and geography, including JFET shipments primarily into AI data centers.
  • Business Unit Revenue GrowthPower Solutions Group revenue was $890 million, up 7% quarter-over-quarter and 21% year-over-year. Analog and Mixed Signal Group revenue was $597 million, up 9% quarter-over-quarter and 2% year-over-year. Intelligent Sensing Group revenue was $235 million, up 3% quarter-over-quarter and 2% year-over-year.
  • Positive Fourth-Quarter OutlookFourth-quarter revenue is expected to be $1.715 billion to $1.815 billion, representing above-seasonal growth of 2.5% sequentially at the midpoint. Non-GAAP gross margin is expected to be 41.5% to 43.5%, non-GAAP EPS is expected to be $0.95 to $1.07, and capital expenditures are expected to be $40 million to $50 million.
  • Expected Fourth-Quarter Segment MomentumManagement expects industrial revenue to increase by low double-digit percentage points in the fourth quarter, AI data center revenue to increase by mid-teens percentage points, and the other revenue segment to increase by high teens percentage points. Automotive revenue is expected to decrease high single-digit percentage points because of supply reallocation and customer delivery timing.
  • Manufacturing Footprint Optimizationonsemi completed the previously announced divestiture of a back-end facility in the Philippines and remains on track to close the divestiture of the Mountain Top fab exiting 2027. Management said the more focused and efficient footprint creates additional opportunity for gross margin expansion over time.
  • Inventory and Channel Metrics ImprovedInventory increased $22 million sequentially but declined by six days to 186 days. Strategic inventory declined by seven days in Q3, distribution inventory declined to 9.9 weeks from 10.1 weeks in Q2, and management said sell-through continued to support a healthy channel and mass-market growth.
  • Capacity Available for 2027 GrowthManagement said existing capacity is sufficient for the current 2027 outlook and some upside, with the company not expected to be near capacity limits. Capacity investments already made are expected to come online in 2027, while capital expenditure intensity is expected to rise from approximately 2% of revenue in 2026 to approximately 5% in 2027.
  • New Product Ramps Through 2027Treo is already contributing revenue and is expected to continue ramping. Vertical GaN is expected to begin contributing revenue in 2027, followed by EPP toward the end of the period, while products introduced in 2025 and 2026 are expected to contribute more meaningfully in 2027.
  • Long-Term Gross Margin DriversManagement outlined approximately 450 basis points of potential utilization improvement, 225 basis points from Fab Right actions, and 400 basis points from mix and new products toward the long-term 53% gross margin target. Pricing actions were also described as a future tailwind, with the company expecting further utilization improvement and margin expansion in 2027.
  • Share Repurchases Continuedonsemi repurchased $20 million of shares in the third quarter, although activity was limited by trading restrictions related to the Synaptics acquisition and renegotiations.

CH:ON Earnings History

CH:ON earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 08, 20272026 (Q4)0.85-0.53――
Nov 02, 20262026 (Q3)0.730.750.5342.86% (+0.23)
Aug 03, 20262026 (Q2)0.600.620.4439.62% (+0.18)
May 04, 20262026 (Q1)0.510.530.4616.36% (+0.08)
Feb 09, 20262025 (Q4)0.520.530.79-32.63% (-0.26)
Nov 03, 20252025 (Q3)0.490.530.83-36.36% (-0.30)
Aug 05, 20252025 (Q2)0.440.440.8-44.79% (-0.36)
May 05, 20252025 (Q1)0.420.460.9-49.07% (-0.44)
Feb 10, 20252024 (Q4)0.810.791.04-24.00% (-0.25)
Oct 28, 20242024 (Q3)0.810.831.16-28.78% (-0.33)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed