onsemi Reports Q3 2026 Results & Revises Synaptics Acquisition Terms to $5.7B Cash

Executive Summary

ON Semiconductor Corporation (onsemi) filed a Form 8-K under Item 2.02 reporting financial results for its third quarter ended October 2, 2026, alongside key corporate development announcements.

Q3 2026 Financial Highlights

• Revenue: $1,722.3 million, up 11% year-over-year and 7% sequentially, exceeding midpoint guidance.
• Profitability:
  • GAAP Gross Margin: 41.4% (up from 37.9% in Q3 2025 and 38.4% in Q2 2026).
  • Non-GAAP Gross Margin: 41.2% (up from 38.0% in Q3 2025).
  • GAAP Operating Margin: 22.0%.
  • Non-GAAP Operating Margin: 23.2%.
  • GAAP Diluted EPS: $0.79 (compared to $0.63 in Q3 2025).
  • Non-GAAP Diluted EPS: $0.90 (compared to $0.63 in Q3 2025, up >40% YoY).
• Cash Flow: Operating cash flow rose 23% YoY to $516 million, while Free Cash Flow reached $489 million (+31% YoY), representing 28% of total revenue.

Segment Performance

• Power Solutions Group (PSG): $889.9 million (+21% YoY, +7% QoQ).
• Advanced Solutions Group (AMG): $597.3 million (+2% YoY, +9% QoQ).
• Intelligent Sensing Group (ISG): $235.1 million (+2% YoY, +3% QoQ).

Strategic and M&A Developments

1. Ferric Acquisition: Announced an agreement to acquire Ferric to strengthen next-generation AI processor power delivery, raising onsemi's 2030 AI data center revenue target by $500 million to over $3 billion.
2. Synaptics Acquisition Restructuring: Revised acquisition terms to approximately $5.7 billion in cash (replacing the previous $7.0 billion all-stock agreement), structured to be immediately accretive to non-GAAP EPS.
3. Customer Engagements: Strategic technology collaboration with Subaru for early access to the Embedded Power Platform (EPP), and Sungrow's adoption of onsemi's EliteSiC hybrid power modules.