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# Onsemi Adjusted EPS Climbs To $0.90 From $0.63 As AI Data Center Revenue Grows 175%
- URL: https://www.bullished.co/onsemi-adjusted-eps-climbs-to-0-90-from-0-63-as-ai-data-center-revenue-grows-175-2141084a/
- Published: 2026-11-02T21:57:48.000Z
- Updated: 2026-11-02T21:57:48.000Z
- Description: The chipmaker's third-quarter revenue rose 11% to $1,722 million, and it guided fourth-quarter revenue to $1,715 million to $1,815 million.
- Author: Matteo Parrino
- Tags: Earnings, ON, Industry: Technology

Onsemi, which makes power and sensing chips for cars, factories and AI data centers, said Monday that third-quarter [revenue rose 11% to $1,722 million](https://www.sec.gov/Archives/edgar/data/0001097864/000114036126041580/ef20084671%5Fex99-1.htm?ref=bullished.co) from a year earlier. Adjusted earnings per share reached $0.90, against $0.63 a year ago, and the company says AI data center revenue grew 175% year over year.

## Earnings outrun sales

On standard accounting, diluted earnings per share were $0.79, compared with $0.56 in the second quarter and $0.63 a year earlier. Net income attributable to the company was $313.9 million, against $226.8 million in the second quarter and $255.0 million a year ago.

The adjusted figure, which excludes items such as restructuring charges and amortization of acquired intangibles, rose from $0.74 in the second quarter. CFO Thad Trent said earnings per share grew more than 40% year over year on 11% revenue growth, which he called evidence of "operating leverage in our model." That 40% refers to the adjusted measure.

Gross margin, the share of sales left after production costs, was 41.4% on standard accounting and 41.2% adjusted, up from 38.4% and 39.3% in the second quarter. Trent said it expanded for the fifth consecutive quarter, by 190 basis points sequentially.

Operating cash flow rose 23% from a year earlier to $516 million. Free cash flow was $489 million, up 31%, or 28% of revenue.

## AI power demand and two deals

CEO Hassane El-Khoury said AI data center revenue grew 39% from the second quarter. By segment, Power Solutions revenue rose 21% year over year to $889.9 million, while Analog and Mixed-Signal rose 2% to $597.3 million and Intelligent Sensing rose 2% to $235.1 million. Automotive made up about 51% of 2025 revenue, according to the company's annual report.

Onsemi also announced an agreement to buy Ferric, which it says establishes it as a leader in power delivery for next-generation AI processors. It raised its 2030 AI data center revenue target by $500 million, to more than $3 billion. [The Ferric deal](https://www.globenewswire.com/news-release/2026/11/02/3393726/0/en/onsemi-to-acquire-ferric-establishing-leadership-in-power-delivery-for-next-generation-ai-processors.html?ref=bullished.co) is $600 million in cash plus up to $175 million in contingent payments tied to revenue milestones.

The company also revised terms of its planned Synaptics purchase to about $5.7 billion in cash, from $7 billion in stock under the prior agreement. Onsemi says the change should make the deal immediately accretive to adjusted earnings per share, meaning it adds to them.

## Fourth-quarter outlook and cash

For the fourth quarter, onsemi guided to revenue of $1,715 million to $1,815 million and adjusted earnings per share of $0.95 to $1.07\. Gross margin is guided to 41.5% to 43.5% on an adjusted basis.

Cash and equivalents ended the quarter at $4,157.7 million, up from $3,514.5 million at the end of the second quarter. In the quarter it repurchased $19.9 million of stock, versus $344.8 million in the second quarter.

Management hosts its earnings call at 5 p.m. ET Monday.

Management hosts its earnings call at 5 p.m. ET Monday, where it will discuss the quarter and the revised Synaptics terms.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — ON SEMICONDUCTOR CORP (ON)](https://www.sec.gov/Archives/edgar/data/0001097864/000114036126041580/ef20084671%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ef20084671\_ex99-1.htm — ON SEMICONDUCTOR CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001097864/000114036126041580/ef20084671%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR
- [Onsemi to Report Q3 Earnings: What's in Store for the Stock?](https://finance.yahoo.com/markets/stocks/articles/onsemi-report-q3-earnings-whats-163400882.html?ref=bullished.co) — Yahoo Finance
- [onsemi Reports Third Quarter 2026 Results](https://www.globenewswire.com/news-release/2026/11/02/3393744/0/en/onsemi-reports-third-quarter-2026-results.html?ref=bullished.co) — globenewswire.com
- [onsemi to Acquire Ferric, Establishing Leadership in Power](https://www.globenewswire.com/news-release/2026/11/02/3393726/0/en/onsemi-to-acquire-ferric-establishing-leadership-in-power-delivery-for-next-generation-ai-processors.html?ref=bullished.co) — globenewswire.com

### More on ON Semiconductor

- [A Rival Bid Forced Onsemi To Cut Its Synaptics Deal By Over $1 Billion — And Switch To All Cash](https://www.bullished.co/a-rival-bid-forced-onsemi-to-cut-its-synaptics-deal-by-over-1-billion-and-switch-to-all-cash/)
- [Onsemi Cuts Synaptics Deal Price To $5.7 Billion And Switches To All-Cash After Rival Bid](https://www.bullished.co/onsemi-cuts-synaptics-deal-price-to-5-7-billion-and-switches-to-all-cash-after-rival-bid-7add9f2b/)

[All ON Semiconductor (ON) coverage →](https://www.bullished.co/tag/on/)