The Zhitong Finance App learned that Onsemi Semiconductor (ON.US) announced the results for the third quarter of 2026 after the US stock market on November 2 (Monday). According to financial reports, Ansemi Semiconductor's Q3 revenue increased 11% year over year to US$1,722 million, better than analysts' general expectations of about US$1.7 billion; adjusted earnings per share were $0.90, up 43% year over year, better than analysts' general expectations of $0.88. GAAP gross profit margin was 41.4%, up 3.5 percentage points year over year; non-GAAP gross margin was 41.2%, up 190 basis points month-on-month, for the fifth consecutive quarter of expansion; non-GAAP operating margin reached 23.2%.
The growth structure continues to lean towards artificial intelligence (AI) business. Power Solution Business (PSG) revenue was US$890 million, up 21% year over year, accounting for about 52% of total revenue; revenue from analog and mixed signal business (AMG) and intelligent sensing business (ISG) increased 2% year over year, respectively. CEO Hassane El-Khoury said AI data center revenue increased 39% month-on-month and 175% year-on-year, and rising power demand is accelerating customer adoption of its differentiated products.
Cash flow and capital allocation activities are intense. Operating cash flow for the quarter was $516 million, up 23% year on year; free cash flow was US$489 million, up 31% year on year, accounting for 28% of revenue; capital expenditure was only about US$28 million.
At the same time, the company announced two key deals: the acquisition of power management company Ferric at a milestone price of 600 million US dollars plus up to 175 million US dollars, and raised the 2030 AI data center revenue target of 500 million US dollars to more than 3 billion US dollars; the Synaptics acquisition terms were revised to about 5.7 billion US dollars in full cash (123 US dollars/share) to replace the original stock plan of about 7 billion US dollars. The company said the transaction is expected to increase earnings per share immediately. Notably, stock buybacks fell to US$19.9 million during the quarter (US$345 million in the previous quarter), and cash and equivalents rose to US$4.16 billion, making reserve ammunition for all-cash purchases.
Fourth-quarter results guidance overall exceeded market expectations. Ansemi Semiconductor expects fourth-quarter revenue of US$1,715-1,815 million, with a median range of US$1,765 million higher than analysts' general expectations of US$1.74 billion; adjusted earnings per share are expected to be US$0.95-1.07, with a median value of US$1.01 higher than analysts' general expectations of US$0.95.
Although both Q3 results and Q4 guidance were better than expected, as pessimism about the technology industry may have dampened investors' enthusiasm, Ansemi Semiconductor's US stock fell more than 3% after the market on Monday as of press release.