Key Highlights

  • onsemi (NASDAQ:ON) reports third quarter 2026 results after the close on November 2, 2026, with a conference call at 5:00 p.m. ET; the quarter ended October 2, 2026.
  • Company guidance calls for Revenue of USD 1,650 million to USD 1,750 million, non-GAAP gross Margin of 40.0 to 42.0 percent and non-GAAP EPS of USD 0.81 to USD 0.93.
  • Second quarter revenue was USD 1,603.5 million, up 9 percent, with non-GAAP EPS of USD 0.74, free Cash Flow of USD 425.4 million and non-GAAP gross margin of 39.3 percent.
  • Management expects AI Data Center revenue to more than double in 2026, while published consensus for the quarter is EPS of USD 0.84 on revenue of about USD 1.65 billion.

What the Third Quarter Guide Implies

onsemi (NASDAQ:ON) set its third quarter outlook on August 3, 2026. Revenue of USD 1,650 million to USD 1,750 million compares with USD 1.55 billion reported a year earlier, so the USD 1,700 million midpoint is about 9.7 percent higher, simple arithmetic on two published numbers. Published consensus revenue of USD 1.65 billion sits at the bottom of the range, while consensus EPS of USD 0.84 is near the low end of the USD 0.81 to USD 0.93 guide. Non-GAAP operating expenses are guided at USD 303 million to USD 318 million; GAAP EPS is guided at USD 0.79 to USD 0.91.

Margins, Mix, and the AI Data Center Push

Gross margin is the lever to watch. The second quarter non-GAAP margin of 39.3 percent compares with a guide of 40.0 to 42.0 percent, which implies improvement of roughly 70 to 270 basis points, simple arithmetic on the ends of the range. Management called AI data center its fastest-growing Business and cited an expanded role in the Nvidia (NASDAQ:NVDA) MGX ecosystem. The largest reporting segment rose 13 percent from the prior quarter and 19 percent from a year earlier to USD 829.0 million, while another fell 2 percent to USD 545.7 million. Higher factory utilization spreads fixed costs over more units, the usual mechanism behind a rising gross margin.

Balance Sheet, Risks, and Dates

Cash was USD 3,514.5 million plus USD 350.0 million of short-term investments at July 3, 2026, and onsemi repurchased about USD 332 million of stock in the second quarter. Total Debt rose to about USD 4.46 billion from about USD 2.98 billion at the end of 2025, partly after a USD 1.47 billion debt issuance. The company also announced a planned Acquisition of Synaptics (NASDAQ:SYNA), which adds integration risk. The backdrop is tense: the Philadelphia Semiconductor index fell about 7.2 percent on October 30, 2026. Advanced Micro Devices (NASDAQ:AMD) reports on November 3 as the next chip read-through.

Where Things Stand

The chipmaker is onsemi (NASDAQ:ON). Its guide implies gross margin of up to 42 percent and revenue growth of about 9.7 percent at the midpoint, and it expects AI data center revenue to more than double in 2026. Consensus sits at the low end of the guided ranges, which sets a modest bar. Against that, debt has grown, the planned acquisition adds integration risk and the sector fell sharply on October 30. The report after the close on November 2 will show whether the margin guide holds.