ON Q3 2026 Revenue $1,722.3 million, Beat Guidance by +$22.3M
ON beat prior Q3 2026 Revenue guidance by +$22.3M. Revenue increased 11% year-over-year driven by accelerating AI data center demand, with AI data center revenue growing 175% year-over-year and 39% sequentially.
Guidance comparison
Forward guidance
Key takeaways
Revenue beat guidance midpoint: Q3 2026 revenue of $1,722.3M exceeded the prior guidance range of $1,650-$1,750M midpoint ($1,700M) by $22.3M.
GAAP EPS missed guidance midpoint: GAAP diluted EPS of $0.79 was $0.06 below the prior guidance midpoint of $0.85; non-GAAP EPS of $0.90 beat the prior guidance midpoint of $0.87 by $0.03.
AI data center revenue surged 175% year-over-year and 39% sequentially, with the company raising its AI data center 2030 revenue target by $500M to greater than $3 billion following the announced acquisition of Ferric.
Gross margin expanded for the fifth consecutive quarter, increasing 190 basis points sequentially to 41.4% GAAP (41.2% non-GAAP).
Free cash flow grew 31% year-over-year to $489 million, representing 28% of revenue.
The company revised the terms of its planned Synaptics acquisition from $7 billion in stock to approximately $5.7 billion in cash, which management expects to be immediately accretive to non-GAAP EPS.
Q4 2026 guidance projects revenue of $1,715-$1,815 million, GAAP EPS of $0.88-$1.00, and non-GAAP EPS of $0.95-$1.07.
Key metrics
Primary source
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