ON US S&P 500Russell 1000 Earnings call · transcribed from the recording
ON Semiconductor (ON) · Q3 2026 results and valuation
Share price: $73.62 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 2 Nov 2026 and 3 Aug 2026
Net income up 38.4% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+38.4%
Net income vs Q2 2026
Outlook given
Net income 313.9M vs 226.8M
Revenue +7.4%
Against the same quarter last year (Q3 2025) it is +23.1%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 83% of company calls
Answers to analysts: typical, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance
ON Semiconductor expects FERRIC to be accreted to its growth and gross margin targets with EPS accretion and no meaningful near-term financial impact.
Valuation
Is ON Semiconductor undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −10.4% growth a year (3-year revenue growth), the model's fair value is $18.86 a share — the stock trades 290% above it. Today's price assumes 8.1% growth a year.
Current price
$73.62
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.1% for 10 yrs
Fair value / share
$18.86
Buy below
$14.15
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Non-CAS financial measures to the most directly comparable CAS
Source quote
“Reconciliation of these non-CAS financial measures to the most directly comparable CAS financial measures and the description of certain limitations... Our audience leads in this presentation include certain non-CAS financial measures.”
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Guidance
In the third quarter, its AI data center revenue grew 39% sequentially to $180 million, and ON Semiconductor now expects to deliver approximately $620 million of revenue in 2026, an increase...
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Figure
In Q3, ON Semiconductor delivered $1.72 billion of revenue, non-GAAP gross margin of approximately 41.2%, and non-GAAP diluted earnings per share...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 85% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“In China, we continue to expand our leading position in high-end OEMs for their 900-volt electric vehicles with these 1200 volt silicon carbide traction inverter wins at NIO for their...”
“continued strength in our business in the Minton War building across our strategic growth markets, with growth above seasonal trends, continued acceleration in the AI data center, and improving demand...”
“AI data center continues to scale rapidly while improving demand in automotive and industrial, content gains, and new platform wins, and multiple factors of growth.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-10-02)
| Metric | Q3 2026period end 2026-10-02 | Q2 2026period end 2026-07-03 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.72B | 1.60B | +7.4% | 1.55B | +11.1% |
| Gross profit | 713.0M | 616.3M | +15.7% | 587.2M | +21.4% |
| Operating income | 378.3M | 258.6M | +46.3% | 264.4M | +43.1% |
| Net income | 313.9M | 226.8M | +38.4% | 255.0M | +23.1% |
| EPS | 0.79 | 0.56 | +41.1% | 0.63 | +25.4% |
| P/E today 37.0 | 49.6 | 59.6 | −10.0 | 67.5 | −17.9 |
Topics
Most discussed now
- During the course of this conference call, ON Semiconductor will make projections or other power-looking statements regarding the future…
- The combination of standard demand, improved mix, and disciplined execution is driving meaningful operating leverage in ON Semiconductor's…
- Continued strength in ON Semiconductor's business in the Minton War building across its strategic growth markets, with growth above…
- ON Semiconductor sees particularly strong demand where power density is becoming the key differentiator from AI data centers and the grid...
- Fading With much of the heavy lifting and investments behind us, ON Semiconductor is positioned to convert revenue growth into earnings and...
Faded since Q2 2026
- Fading These results reflect the operating leverage in ON Semiconductor's model with recovering demand, driving accelerated margin expansion and…
- Fading Outside of ON Semiconductor sees the demand environment kind of stable.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K