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ON · Analysis updated Nov 6, 2026, 9:54 AM ET
Why is ON Semiconductor (ON) stock moving?
onsemi reported Q3 results that beat on adjusted figures: non-GAAP EPS of $0.90, revenue of $1.72B and a fifth straight quarter of gross margin expansion to 41.2%. AI data center revenue grew 175% year over year to $180M, and the company raised its 2030 AI target to more than $3B after agreeing to buy Ferric. The stock has still fallen hard since. Investors focused on a softer automotive outlook, the revised $5.7B cash Synaptics deal, and a wave of price-target cuts. The Nov 5 session fell about 11.6% to $63.01 on 26.1M shares, roughly 2.5x the recent average, and closed near the day's low. That points to heavy distribution and a new low for the period. The stock is far below its 52-week high of about $134, and its beta is high. Sentiment is damaged in the short term. The fundamentals (margin expansion, free cash flow of about 28% of revenue, AI growth) and the cuts to targets that remain above the current price leave room for a rebound. Another large fall without a new company-specific catalyst raises the chance of a technical or macro-driven selloff, so the near-term call is uncertain.
News behind the analysis
- ON Q3 Earnings Beat Estimates, Strong AI Data Center Aids Top LineQ3 non-GAAP EPS of $0.90 rose 42.9% year over year. Revenue rose 11.1% to $1.722B, and free cash flow was about $489M.
- ON Semiconductor shares fall despite earnings beatThe stock dropped about 4% after hours despite a beat. The company also announced the Ferric acquisition and raised its 2030 AI data center target by $500M to more than $3B.
- Earnings call transcript: onsemi beats Q3 2026 estimates as shares slipInvestors focused on a softer near-term automotive outlook, and the stock did not rally on the report.
- ON Semiconductor Q3 2026 Earnings Call TranscriptAI data center revenue grew 39% sequentially to $180M. Management expects about $620M in 2026 and a doubling in 2027.
- ON Semiconductor Q3 2026 Earnings Call Highlights: AI Data Center Revenue Surges 175%Non-GAAP gross margin rose 190 bps sequentially to 41.2%, the fifth straight quarter of expansion. Non-GAAP operating income was $400M.
- onsemi Reports Third Quarter 2026 Results (8-K)The company reported GAAP EPS of $0.79 and non-GAAP EPS of $0.90. It also announced revised terms for the Synaptics acquisition: about $5.7B in cash, versus $7B in stock in the prior agreement.
- ON Semiconductor Corp Reports Q3 2026 Earnings: GAAP EPS Misses, Revenue Short of EstimateGAAP EPS of $0.79 was below the $0.87 estimate. Some sources put revenue below consensus, which suggests a slower demand recovery.
- Onsemi's AI Data Center Sales Reportedly Grew 175%. Is That the Chip Stock's New Story?This was the fourth straight earnings beat. Analysts are split on bargain versus value trap, and Barclays cites auto and China exposure.
- ON Semiconductor Sheds Nearly 9% in a Single Session, Closing at $62.94The stock opened at $68.94 and closed down about 8.7%, wiping out roughly $2B of market value. A midday bounce failed.
- ON Semiconductor Stock Quote and ForecastAfter results, several price targets were cut: Wells Fargo to $90, BofA to $100, Mizuho to $87. Craig-Hallum upgraded to Buy.