ON Semiconductor Beats Q3 Estimates Despite Revenue Decline

The company reports a 19% year-over-year revenue drop and offers a cautious outlook, focusing on growth in automotive and AI sectors.

ON Semiconductor's third-quarter revenue fell 19.2% year-over-year to $1.76 billion, slightly exceeding analyst expectations.
The company's adjusted earnings per share were $0.99, surpassing the consensus estimate of $0.97.
Sales declined across all three business units, with the Power Solutions Group experiencing the largest drop at 23%.
Despite margin pressures, ON Semiconductor generated $293.6 million in free cash flow and held $2.77 billion in cash.
CEO Hassane El-Khoury emphasized ongoing investments to capitalize on rising power demands in key markets, including automotive and AI.