onsemi (NASDAQ:ON – Get Free Report) posted its earnings results on Monday. The semiconductor company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.02, FiscalAI reports. onsemi had a return on equity of 15.61% and a net margin of 10.82%. The company had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.71 billion. During the same quarter last year, the firm earned $0.63 earnings per share. 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 Price Performance
ON stock opened at $72.60 on Wednesday. The company has a current ratio of 3.46, a quick ratio of 2.49 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $28.26 billion, a PE ratio of 42.21, a P/E/G ratio of 0.58 and a beta of 2.11. onsemi has a 12-month low of $44.56 and a 12-month high of $134.92. The business’s fifty day moving average price is $74.68 and its 200 day moving average price is $82.08.
More onsemi News
Here are the key news stories impacting onsemi this week:
- Positive Sentiment: Results and outlook topped expectations. Third-quarter adjusted EPS was $0.90 versus the $0.88 consensus, while revenue rose 11% year over year to about $1.72 billion. For Q4, onsemi forecast adjusted EPS of $0.95–$1.07, above the $0.96 consensus midpoint comparison. onsemi Q3 results
- Positive Sentiment: AI data-center growth is a major driver. The segment’s revenue grew 175% year over year, and management expects AI data-center revenue to exceed $3 billion by 2030—$500 million above its previous target. Q3 earnings call highlights
- Positive Sentiment: Ferric deal strengthens the AI opportunity. onsemi agreed to acquire Ferric for $600 million in cash, plus up to $175 million tied to milestones, adding integrated voltage-regulator technology for next-generation AI processors. Ferric acquisition announcement
- Neutral Sentiment: Cash generation and margins also improved: free cash flow rose 31% year over year to $489 million, while industrial demand and manufacturing efficiencies supported margin expansion. Earnings call overview
- Negative Sentiment: Automotive remains a risk. onsemi is prioritizing AI and industrial customers, delaying some automakers’ inventory orders as auto restocking remains slow. Automotive restocking and AI sales
- Negative Sentiment: Some analysts lowered targets, signaling caution despite the AI outlook; Evercore cut its target from $137 to $90, while Goldman Sachs and Mizuho also reduced theirs. Evercore analyst action
Insider Transactions at onsemi
In related news, insider Sudhir Gopalswamy sold 15,578 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $80.00, for a total transaction of $1,246,240.00. Following the completion of the transaction, the insider directly owned 158,177 shares in the company, valued at $12,654,160. This trade represents a 8.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.35% of the company’s stock.
Analyst Ratings Changes
Several equities analysts have recently commented on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $116.00 price target on shares of onsemi in a research note on Tuesday. B. Riley Financial cut their price objective on onsemi from $105.00 to $97.00 and set a “buy” rating for the company in a research report on Tuesday. TD Cowen restated a “hold” rating and issued a $75.00 price objective on shares of onsemi in a report on Tuesday. Weiss Ratings upgraded shares of onsemi from a “sell (d+)” rating to a “hold (c)” rating in a report on Friday, August 7th. Finally, Robert W. Baird upped their target price on shares of onsemi from $100.00 to $108.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and sixteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, onsemi currently has an average rating of “Moderate Buy” and an average price target of $95.66.
View Our Latest Stock Report on ON
About onsemi
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.
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