AI Earnings Predictions for ON Semiconductor Corporation (ON)

EX-99.1

2 ef20084671_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

onsemi Reports Third Quarter 2026 Results

Earnings growth outpaces revenue growth by 4x year-over-year

SCOTTSDALE, Ariz., – November 2, 2026 – onsemi (the “Company”) (Nasdaq: ON) today announced its third quarter 2026 results with the following highlights:

•

Revenue of $1,722 million, increased 11% year-over-year

•

GAAP gross margin of 41.4% and non-GAAP gross margin of 41.2%

•

GAAP operating margin of 22.0% and non-GAAP operating margin 23.2%

•

GAAP diluted earnings per share of $0.79 and non-GAAP diluted earnings per share $0.90

•

Cash from operations increased by 23% year-over-year to $516 million

•

Free cash flow of $489 million, grew 31% year-over-year to 28% of revenue

“Increasing power requirements are driving accelerated demand in our AI data center and industrial end markets, as customers adopt and ramp our differentiated products,” said Hassane El-Khoury, President and CEO of onsemi. “Our third quarter revenue, gross margin and earnings per share exceeded the midpoint of our guidance, while AI data center revenue grew 39% sequentially and 175% year-over-year.”

“Gross margin expanded for the fifth consecutive quarter, increasing 190 basis points sequentially. Our results continue to demonstrate the operating leverage in our model, with earnings per share growing more than 40% year-over-year on 11% revenue growth,” said Thad Trent, EVP and CFO of onsemi. “As we execute our ongoing fab right initiatives and ramp new differentiated products, we are driving further margin and earnings expansion, positioning onsemi for durable, profitable growth.”

Business Highlights:

•

Announced an agreement to acquire Ferric, establishing onsemi as a leader in next generation AI processor power delivery and raising the AI data center 2030 revenue target by $500 million to greater than $3 billion

•

Announced revised terms for planned acquisition of Synaptics, for approximately $5.7 billion in cash compared to $7 billion in stock for the prior agreement, which should make the transaction immediately accretive to non-GAAP EPS

•

Entered into a strategic technology engagement with Subaru for early access to the newly introduced Embedded Power Platform (EPP), a breakthrough power architecture integrating heterogeneous technologies

•

Sungrow adopted onsemi’s latest EliteSiC silicon carbide (SiC) hybrid power module technology which helps energy providers meet growing electricity demand from AI, renewable energy and electrification

Selected financial results for the quarter are shown below with comparable periods (unaudited):

GAAP

Non-GAAP

(Revenue and Net Income in millions)

Q3 2026

Q2 2026

Q3 2025

Q3 2026

Q2 2026

Q3 2025

Revenue

$

1,722.3

$

1,603.5

$

1,550.9

$

1,722.3

$

1,603.5

$

1,550.9

Gross Margin

41.4%

38.4%

37.9%

41.2%

39.3%

38.0%

Operating Margin

22.0%

16.1%

17.0%

23.2%

20.8%

19.2%

Net Income attributable to ON Semiconductor Corporation

$

313.9

$

226.8

$

255.0

$

354.0

$

293.8

$

256.3

Diluted Earnings Per Share

$

0.79

$

0.56

$

0.63

$

0.90

$

0.74

$

0.63

1

Revenue Summary

(in millions)

(Unaudited)

Quarters Ended

Business Segment

Q3 2026

Q2 2026

Q3 2025

Sequential Change

Year-over-

Year Change

PSG

$

889.9

$

829.0

$

737.6

7%

21%

AMG

597.3

545.7

583.3

9%

2%

ISG

235.1

228.8

230.0

3%

2%

Total

$

1,722.3

$

1,603.5

$

1,550.9

7%

11%

FOURTH QUARTER 2026 OUTLOOK

The following table outlines onsemi’s projected fourth quarter of 2026 GAAP and non-GAAP outlook.

Total onsemi

GAAP

Special

Items **

Total onsemi

Non-GAAP***

Revenue

$1,715 to $1,815 million

-

$1,715 to $1,815 million

Gross Margin

41.4% to 43.4%

0.1%

41.5% to 43.5%

Operating Expenses

$331 to $346 million

$29 million

$303 to $318 million

Other Income and Expense (including interest), net

($27 million)

-

($27 million)

Diluted Earnings Per Share

$0.88 to $1.00

$0.07

$0.95 to $1.07

Diluted Shares Outstanding *

397 million

5 million

392 million

*

Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Convertible Senior Notes due 2027 (the “0% Notes”), $103.87 for the 0.50% Convertible Senior Notes due 2029 (the “0.50% Notes”), and $161.30 for the 0% Convertible Senior Notes due 2031 (the “2031 0% Notes”), the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 fo

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