$ON · ON SEMICONDUCTOR CORP
onsemi reported Q3 FY2026 results with revenue of $1.722B (+11% YoY), GAAP gross margin of 41.4%, and non-GAAP EPS of $0.90, all exceeding the midpoint of guidance. The company issued Q4 guidance for revenue of $1.715B–$1.815B and non-GAAP EPS of $0.95–$1.07. The filing also highlighted the revised Synaptics acquisition terms at $5.7B cash and the Ferric acquisition to expand AI data center capabilities.
- Q3 revenue $1.722B, up 11% YoY, exceeding the midpoint of guidance
- Non-GAAP EPS $0.90 vs $0.63 YoY — earnings grew 43% on 11% revenue growth
- GAAP gross margin 41.4%, fifth consecutive quarter of expansion, up 190 bps sequentially
- AI data center revenue grew 39% sequentially and 175% YoY
- Q4 guidance: revenue $1.715B–$1.815B, non-GAAP EPS $0.95–$1.07
Extended-hours trading shows ON at $66.89, down 4.59% from the $70.11 regular close. Despite Q3 beats on revenue, margins, and EPS, the Q4 guidance midpoint implies roughly flat sequential revenue and EPS, which appears to be disappointing elevated expectations after five straight quarters of margin expansion.
onsemi's 4x earnings growth vs. revenue growth demonstrates powerful operating leverage, but the after-hours selloff signals the market wanted more from Q4 guidance.
onsemi's AI data center revenue trajectory (175% YoY, 39% sequential) and the Ferric acquisition raising the 2030 AI revenue target to >$3B position it as an emerging player in AI power delivery, competing with analog peers also pivoting toward data-center power management.
Q4 guidance midpoint of $1.765B revenue implies only ~2.5% sequential growth, a sharp deceleration from Q3's 7% sequential gain. The Synaptics acquisition for $5.7B in cash adds integration and leverage risk. Restructuring charges of $375.1M over nine months signal ongoing portfolio reshaping.