onsemi (NASDAQ:ON) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

onsemi (NASDAQ:ON) posted its earnings results on Monday. The semiconductor company reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.02, FiscalAI reports. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same quarter in the prior year, the firm earned $0.63 EPS. The firm’s quarterly revenue was up 11.1% compared to the same quarter last year.

Here are the key takeaways from onsemi’s conference call:

• Q3 exceeded guidance: Revenue rose 7% sequentially to $1.72 billion, while non-GAAP gross margin expanded to 41.2% and EPS reached $0.90. Q4 guidance calls for 2.5% sequential revenue growth at the midpoint and EPS of $0.95–$1.07.
• AI data-center growth is accelerating: Revenue increased 39% sequentially to $180 million, with 2026 revenue now expected at approximately $620 million and 2027 revenue projected to double. The Ferric acquisition is expected to strengthen onsemi’s integrated voltage-regulator position and raises its 2030 AI data-center revenue target by $500 million to more than $3 billion.
• Industrial demand is recovering strongly, driven by energy infrastructure, factory automation, and the AI data-center “halo” effect. Industrial revenue rose 10% sequentially, and management expects low-double-digit growth in Q4.
• Automotive revenue faces a near-term setback: onsemi expects a high-single-digit percentage decline in Q4 as it reallocates constrained supply to AI data-center and industrial customers. Management says this reflects delayed inventory replenishment rather than lost share, with normalized supply expected in Q1 and long-term automotive growth expected to resume in 2027.
• Margin and cash-flow expansion remain central to the outlook: Management expects further utilization gains, favorable new-product mix, pricing benefits, and footprint efficiencies to support continued gross-margin expansion. Q3 free cash flow was $489 million, although the company plans to prioritize deleveraging after completing the Ferric and Synaptics transactions.

onsemi Trading Down 2.2%

Shares of onsemi stock opened at $70.11 on Tuesday. The company has a debt-to-equity ratio of 0.51, a current ratio of 3.46 and a quick ratio of 2.49. The business has a fifty day simple moving average of $74.67 and a two-hundred day simple moving average of $82.02. onsemi has a 1 year low of $44.56 and a 1 year high of $134.92. The company has a market capitalization of $27.29 billion, a price-to-earnings ratio of 44.94, a P/E/G ratio of 0.62 and a beta of 2.05.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: AI growth outlook raised: onsemi agreed to acquire Ferric, a developer of integrated voltage-regulator technology, for $600 million in cash plus up to $175 million in contingent consideration. The deal is expected to strengthen onsemi’s power-delivery position for next-generation AI processors and lift its 2030 AI data-center revenue target by $500 million to more than $3 billion. onsemi to Acquire Ferric
• Positive Sentiment: Quarterly results topped consensus: Third-quarter revenue rose 11.1% year over year to approximately $1.72 billion, while adjusted earnings were $0.90 per share versus estimates of $0.88. Cash flow also strengthened, with operating cash flow up 23% to $516 million and free cash flow up 31% to $489 million. onsemi Reports Third Quarter 2026 Results
• Positive Sentiment: AI demand is accelerating: Management said AI data-center revenue surged 175% year over year, helped by customer demand and supply constraints that redirected capacity toward the company’s differentiated products. Fourth-quarter revenue guidance of roughly $1.77 billion was reportedly above the analyst consensus. onsemi Q3 Earnings Call Highlights
• Neutral Sentiment: The Ferric acquisition could improve long-term revenue growth, gross margins and earnings per share, but it requires a substantial cash outlay and execution will be needed to integrate the technology and convert AI demand into sustained sales.
• Negative Sentiment: The positive results were not enough to satisfy elevated investor expectations. Reports indicate the stock weakened after the earnings release, suggesting the market may be focused on the pace of broader semiconductor recovery, valuation, and whether AI growth can offset softness in other end markets. Why onsemi Shares Fell Despite Earnings

Insider Activity at onsemi

In other news, insider Sudhir Gopalswamy sold 15,578 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $80.00, for a total value of $1,246,240.00. Following the transaction, the insider directly owned 158,177 shares of the company’s stock, valued at $12,654,160. This represents a 8.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.35% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have issued reports on ON shares. Rosenblatt Securities reiterated a “neutral” rating and issued a $85.00 price objective on shares of onsemi in a research report on Thursday, September 17th. Susquehanna lowered their target price on shares of onsemi from $150.00 to $120.00 and set a “positive” rating for the company in a research note on Wednesday, October 21st. Needham & Company LLC restated a “buy” rating and issued a $116.00 price target on shares of onsemi in a report on Friday, October 2nd. Wells Fargo & Company restated an “overweight” rating on shares of onsemi in a report on Tuesday. Finally, Seaport Research Partners assumed coverage on onsemi in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $100.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and sixteen have given a Hold rating to the company. According to MarketBeat.com, onsemi has an average rating of “Moderate Buy” and an average price target of $92.68.

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.