10-Q · August 3, 2026
ON delivered a stronger Q2, with revenue up 9% year over year and 6.2% sequentially to $1.6035 billion, while GAAP EPS improved to $0.56 from $0.41 a year earlier and a Q1 loss. Gross margin increased 0.8 percentage…
Earnings analysis · 10-Q
ON earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
onsemi delivered strong third-quarter results, with revenue up approximately 11% year over year to $1,722.3 million, gross margin up 3.5 percentage points to 41.4%, and diluted EPS increasing to $0.79 from $0.63. PSG…
Read full summary
onsemi delivered strong third-quarter results, with revenue up approximately 11% year over year to $1,722.3 million, gross margin up 3.5 percentage points to 41.4%, and diluted EPS increasing to $0.79 from $0.63. PSG and AI data center demand were the principal growth drivers, while AMG was broadly stable and ISG profitability weakened. Cash generation and liquidity improved, but the proposed Synaptics acquisition introduces substantial execution, regulatory and financing risks, including up to $2,450.0 million of committed acquisition debt.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.79
What stood out
-
Revenue grew 11% year over year
Third-quarter revenue increased to $1,722.3 million from $1,550.9 million, a year-over-year increase of $171.4 million, or approximately 11%. Management attributed the increase to higher industrial, AI data center and other demand.
-
Gross margin expanded to 41.4%
Gross profit rose to $713.0 million from $587.2 million, while gross margin expanded 3.5 percentage points to 41.4% from 37.9%. Management cited improved manufacturing utilization and favorable product mix.
-
Operating leverage lifted EPS
Operating income increased to $378.3 million from $264.4 million, lifting operating margin to approximately 22.0% from approximately 17.0%. Diluted EPS increased to $0.79 from $0.63.
-
AI data center demand accelerated
AI data center revenue increased to $180.2 million from $65.6 million, while industrial revenue increased to $466.8 million from $426.3 million. Automotive revenue declined to $776.7 million from $787.3 million.
-
Liquidity and operating cash flow strengthened
Cash and cash equivalents increased to $4,157.7 million from $2,147.6 million at December 31, 2025. Nine-month operating cash flow was $1,215.2 million, compared with $1,205.3 million in the prior-year period.
-
Capital spending remained disciplined
Nine-month capital expenditures declined to $84.0 million from $272.1 million, or approximately 2% of revenue. Management expects annualized 2026 capital expenditures of approximately 2%-3% of revenue.
What to watch
-
Synaptics closing and regulatory risk
The proposed Synaptics transaction is subject to stockholder and regulatory approvals and is expected to close in mid-2027; failure to close under specified circumstances could require onsemi to pay a $320.0 million regulatory termination fee.
-
Acquisition financing raises leverage
Onsemi has committed up to $2,450.0 million of senior secured term loans to fund part of the Synaptics transaction. The company also reported gross long-term debt of $4,504.7 million, including $804.7 million maturing in the remainder of 2026.
-
Acquisition execution and cost risk
The proposed transaction carries execution and integration risk: management expects to pay approximately $600.0 million in base cash consideration for Ferric, with potential additional consideration of up to $175.0 million, while the Synaptics transaction has already contributed to $107.8 million of quarterly general and administrative expense.
-
Automotive demand and allocation pressure
Automotive revenue declined to $776.7 million from $787.3 million year over year, and management reallocated supply toward industrial and AI data center end-markets. This mix shift may pressure automotive volumes and customer relationships.
-
ISG margin deterioration
ISG gross profit declined to $73.6 million from $80.9 million, and ISG gross margin fell to 31.3% from 35.2%, primarily due to unfavorable product mix.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management expects 2026 annualized capital expenditures of approximately 2%-3% of revenue, expects approximately 39% of $5.5 billion in remaining long-term supply agreement obligations to be recognized as revenue over the next 12 months, and expects the Synaptics acquisition to close in mid-2027.
Earlier filings 4
10-Q · May 4, 2026
ON Semiconductor reported better-than-expected Q1 2026 results, with revenue rising 5% year-over-year to $1.51 billion and EPS at $0.64, exceeding consensus estimates. Significant improvements in gross margin to 38.5%…
10-K · February 10, 2025
ON Semiconductor positions itself as a focused automotive and industrial semiconductor supplier prioritizing revenue growth while defending gross margin through product differentiation and a 'Fab Right' manufacturing…
10-K · February 5, 2024
ON Semiconductor positions itself to capture automotive and industrial electrification trends, emphasizing SiC capacity expansion (EFK, Hudson, Rožnov, Bucheon) and differentiated intelligent power and sensing products.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.