Key Highlights

  • Third-quarter 2026 sales for ON reached $1.72 billion, an 11% improvement over $1.55 billion a year earlier and 7% above the second quarter.
  • Diluted GAAP profit landed at $0.79 a share (a year earlier: $0.63), while adjusted Earnings hit $0.90 a share.
  • AI Data Center sales grew 175% year over year, reaching $180 million, while the company now anticipates roughly $620 million for 2026.
  • Free Cash Flow totaled $489 million (28% of revenue), with roughly $4.4 billion held in cash and short-term investments.
  • The fourth-quarter outlook spans $1.715 billion through $1.815 billion in Revenue and $0.95 through $1.07 in non-GAAP earnings per share.

Chipmaker's Sales Advance With Data Center Demand Leading the Quarter

On Nov 2, 2026, ON Semiconductor (NASDAQ:ON) released figures covering the quarter that ended Oct 2, 2026. Top-line revenue totaled $1.722 billion, roughly $22 million ahead of the guidance midpoint and above the $1.551 billion of a year ago. GAAP Net Income for the company reached $313.9 million, equal to $0.79 per diluted share; the prior-year figures were $255.0 million and $0.63.

Serving automotive, industrial and data center clients with power and sensing chips, the Business now breaks out AI data center as its own end market. That segment generated $180 million, rising 39% from the previous quarter and 175% from twelve months earlier.

Industrial sales climbed 9% annually to $467 million, driven partly by factory automation and energy infrastructure demand. Automotive sales dipped 1%, to $777 million, because scarce Supply was redirected toward markets with stronger demand. Across business units, Power Solutions advanced 21% to $890 million, while Analog and Mixed Signal (up 2%, $597 million) and Intelligent Sensing (up 2%, $235 million) each edged higher.

Margin Gains Hold Near 41.2% as Free Cash Flow Reaches $489 Million

Adjusted gross Margin landed at 41.2%, a 190-basis-point improvement sequentially, helped by stronger utilization and a richer mix of recently launched products. On a GAAP basis the margin was 41.4%, and factories ran at 83% utilization.

Adjusted operating profit approached $400 million, equal to 23% of sales, and adjusted net income was close to $354 million. Leadership said profits are outpacing sales growth as heavy spending eases.

Operating cash inflow reached $516 million, leaving free cash flow at $489 million. Liquidity totaled $5.9 billion, which counts a $1.5 billion revolver that remains untapped. Share repurchases were $20 million, a figure restricted by trading limits connected to a planned all-cash purchase of a U.S.-listed technology firm.

Ferric Deal Adds Voltage Regulator Capabilities and Raises Long-Range AI Goal

A purchase agreement covers Ferric, a privately held producer of integrated voltage regulators. The price is $600 million, plus as much as $175 million in performance payments linked to revenue targets. Closing is anticipated in the fourth quarter; management sees little near-term financial effect but expects accretion as the business scales.

The target for AI data center revenue in 2030 rose by $500 million, to above $3 billion. The company projects roughly $620 million of AI data center revenue in 2026, a 140% increase, and still expects that figure to double in 2027.

Guidance Points to Higher Industrial Sales as Auto Revenue Softens Late in 2026

Fourth-quarter revenue is projected between $1.715 billion and $1.815 billion, with a 41.5% to 43.5% adjusted gross margin range and per-share adjusted earnings between $0.95 and $1.07. Auto sales should decline by a high single-digit percentage as supply is shifted elsewhere, whereas industrial sales are forecast to climb by a low double-digit rate. Management anticipates auto normalizing around the first quarter of 2027, with Long-term Growth goals resuming the following year.