ON Semiconductor has reported its third quarter earnings, with a few notable highlights. The company’s revenue was slightly above expectations, with the Datacenter segment continuing its strong growth momentum. ON also announced the acquisition of Ferric, a privately-held provider of power solutions for AI infrastructure, for $600mn in cash plus contingent consideration of up to $175mn.

Revenue and EPS Guidance
ON Semiconductor guided fourth quarter revenue and EPS above the Street, with revenue expected to be around $1.77 bn at the midpoint, bracketing Goldman Sachs’ estimate of $1.79 bn and the Visible Alpha Consensus Data of $1.71 bn. The company expects Automotive revenue to be down in the high-single digits QoQ, Industrial revenue to be up low-double digits QoQ, AI Datacenter to be up in the mid-teens range QoQ, and Other to be up in the high-teens range QoQ.

Datacenter Opportunity Expands
ON Semiconductor noted that AI datacenter revenue continues its strong pace of growth, and that it now expects to deliver $620mn sales in the sub-segment in 2026 (vs. $250mn in 2025), citing the breadth of its portfolio of power solutions which it believes differentiates it from other US-based suppliers.

Acquisition of Ferric
ON Semiconductor announced a definitive agreement to acquire Ferric, a privately-held provider of power solutions for AI infrastructure, for $600mn in cash plus contingent consideration of up to $175mn. This acquisition is expected to expand ON Semiconductor’s presence in the AI datacenter market and further solidify its position as a leading provider of power solutions for AI infrastructure.