Schwab Network on $ON (Nov 3, 2026)

Let's talk about on semi, which actually beat the street. I know. I think it sold off a little bit, now it's higher, but those analysts are changing the price targets a bit. They're coming back a bit.

Yeah, investors are reacting to a mix of news here for oni. They had both their earnings, but they also announced this deal news. So that's why you see some of the fluctuations and probably why you saw pressure in the aftermarket and and briefly in the pre-market this morning.

But now investors have decided, okay, they like what they're seeing.

Earnings coming in at 90 cents per share on an adjusted basis. That was a beat. That's a clean beat. We were looking for 88 cents. Revenue 1.7 to beat. Another clean beat there.

We were looking for 1.7 billion there. Revenue rising 11%. So slightly ahead of consensus here.

uh free cash flow reaching 489 million. Obviously, Wall Street liking that as well.

Adjusted gross margin 41.2% there. Uh so, you know, the in terms of again what the investor reaction was after hours, that was clearly not about the earnings. Uh here's what's happening there.

Right before their earnings, they announced this Feric deal. Uh this is a bet on AI power here. That's what Feric does. They agreed to buy Feric for $600 million in cash plus up to $175 million.

That's tied to milestones, revenue milestones here. So, it's a potential total of 775 million there.

So, you know, we see that sometimes where there's pressure when Wall Street is kind of trying to digest and decide what the value is here and is it worth it, what they're paying for. They've obviously decided it is worth it.

The outlook also looks good for on semi fourth quarter adjusted earnings. They're guiding for 95 cents to a buckle 7 per share.