ON Semiconductor Corporation

ON Semiconductor Corporation, which operates as onsemi (Nasdaq: ON), supplies power-management and sensing chips for vehicles, industrial equipment and other electronics. It is expanding its power-electronics offering for AI data centers.

Third-quarter results

The table compares the quarters ended October 2, 2026 and October 3, 2025. Amounts are USD millions, except per-share figures and percentages.

Adjusted earnings remove selected restructuring, acquisition and other items, apply selected tax adjustments, and use a share count adjusted for convertible-note hedges. They retain stock-based compensation. Free cash flow is operating cash less purchases of property, plant and equipment.

Earlier forecasts and the next quarter

Revenue of $1.722 billion and adjusted EPS of $0.90 were above the midpoints of August's $1.650 billion to $1.750 billion and $0.81 to $0.93 forecasts, but remained within those ranges. GAAP EPS of $0.79 was at the bottom of the $0.79 to $0.91 forecast.

For Q4, onsemi forecasts revenue of $1.715 billion to $1.815 billion, GAAP EPS of $0.88 to $1.00 and adjusted EPS of $0.95 to $1.07. The GAAP gross-margin range is 41.4% to 43.4%; the adjusted range is 41.5% to 43.5%.

AI data center revenue rose 39% sequentially and 175% from a year earlier, according to the company. Its 2030 AI data center revenue target is now more than $3 billion, an increase of $500 million.

Cash generation and capital returns

Quarterly free cash flow rose to $488.6 million from $372.4 million. Cash buybacks fell to $19.9 million from $325 million a year earlier and $344.8 million in Q2.

For the first nine months, operating cash was $1.215 billion, versus $1.205 billion. Lower capital spending of $84 million, versus $272.1 million, helped free cash flow rise to $1.131 billion from $933.2 million.

Cash and cash equivalents were $4.158 billion at October 2, versus $3.515 billion in July. Short-term investments added $210 million. Debt carrying values totaled $4.463 billion, including $802.8 million of current debt and $3.660 billion of long-term debt.

Completed and pending acquisitions

onsemi completed the Silver Atena acquisition on October 5, after the quarter ended, for $52.2 million in cash, subject to adjustments. The business adds engineering capabilities in power electronics.

The Ferric acquisition, announced November 2, remains pending, with closing expected in Q4. Terms include $600 million in cash plus up to $175 million tied to revenue milestones through 2029. onsemi expects to use cash on hand.

The Synaptics acquisition remains pending, with closing expected in mid-2027, subject to shareholder and regulatory approvals and other conditions. On October 1, the agreement changed from stock consideration to $123 a share in cash, approximately $5.7 billion in total.

A conditional $2.45 billion senior secured loan commitment would help fund Synaptics and related expenses. That commitment was not cash already received at quarter-end.