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ON Semiconductor Q3 Revenue Declines as Free Cash Flow Stays Strong and Outlook Turns Cautious

Management prioritized cash returns through buybacks, signaling caution for the next quarter.

Overview

  • Q3 revenue came in at $1,550.9 million, down 12% year over year but up 6% sequentially, with net income of $255.0 million and diluted EPS of $0.63.
  • GAAP gross margin was 37.9%, edging higher from Q2, with operating margin improving to 17.0% on a GAAP basis.
  • Free cash flow reached $372.4 million in Q3, representing about 24% of revenue, and year‑to‑date share repurchases totaled roughly $925 million.
  • Q4 guidance calls for revenue of $1.48 billion to $1.58 billion, gross margin of 36.9% to 38.9%, and EPS of $0.56 to $0.66.
  • Shares traded near $50.60, up about 1%, as the stock lags broader benchmarks over the past year and analysts maintain a Moderate Buy consensus with a mean target around $58.21.