ON SEMICONDUCTOR CORP
For the period ended Apr 3, 2026. Filed May 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 3, 2026 · Filed May 4, 2026
ON$63.31+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-10-03; filed 2025-11-03.
0001097864-25-000019
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-03; filed 2026-05-04.
0001097864-26-000014
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 80 current paragraphs.
43 unchanged; 17 reworded; 19 added; 48 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
ON Semiconductor Corporation ("onsemi," "we," "us," "our," or the "Company"), with its wholly and majority-owned subsidiaries, operates under the onsemi TM brand. The Company is organized into three operating and reportable segments: the Power Solutions Group ("PSG"), the Analog and Mixed-Signal Group ("AMG"), and the Intelligent Sensing Group ("ISG").
Current report
We offer intelligent power and intelligent sensing solutions that drive electrification, energy efficiency, safety, and automation in automotive, industrial, and other end‑markets, including AI data center. Our intelligent power technologies enable electrified drivetrain and power management applications in the automotive industry and support efficient fast‑charging systems. Our intelligent sensing technologies enable advanced safety applications in automotive through industry‑leading performance and reliability.
Current report
In the industrial market, our intelligent power technologies propel sustainable energy for the highest efficiency solar strings and industrial power. In the medical field, our intelligent power technologies extend the life of personal diagnostic devices, such as continuous glucose monitors. Our intelligent sensing technologies support the next generation industry through automation, allowing for smarter factories and buildings. Our intelligent power and sensing technologies are enabling robotics and humanoids.
Current report
In our other end-market, which includes AI data center products, our intelligent power technologies enable energy efficiency in a market in which energy needs are growing at an exponential rate, and AI data center operators are focused on reducing energy consumption. We believe we have one of the most comprehensive portfolios of products and technologies for this market to address the complete power tree, and we are well-positioned to benefit as next-generation AI data center processors and racks enter the market.
Current report
During the first quarter of 2026, the Company continued to engage in additional restructuring and cost reduction initiatives under its previously disclosed multi‑year manufacturing realignment program to better align manufacturing capacity and capabilities with anticipated long-term needs.
Current report
Revenue from PSG increased by $91.5 million, or approximately 14%, for the quarter ended April 3, 2026 compared to the quarter ended April 4, 2025 due to increased demand. This was driven by an increase in revenue of $53.1 million, $31.0 million, and $7.4 million in the automotive, other, and industrial end-markets, respectively.
Current report
Revenue from AMG decreased by $26.0 million, or approximately 5%, for the quarter ended April 3, 2026 compared to the quarter ended April 4, 2025 attributable to lower demand in certain end-markets. This was driven by a decrease in revenue of $16.3 million and $14.7 million in the automotive and other end-markets, respectively, which was partially offset by an increase of $5.0 million within the industrial end-market.
Current report
Revenue from ISG increased by $2.1 million, or approximately 1%, for the quarter ended April 3, 2026 compared to the quarter ended April 4, 2025 due to increased demand. This was driven by an increase in revenue of $4.6 million in the industrial end-market, which was partially offset by a decrease in revenue of $1.4 million and $1.1 million in the automotive and other end-markets.
Current report
Gross profit increased by $289.3 million, or approximately 98%, to $583.1 million for the quarter ended April 3, 2026 compared to $293.8 million for the quarter ended April 4, 2025 primarily due to the absence of $237.7 million of excess and obsolete inventory charges and a $43.9 million write‑off of consumables and manufacturing supplies recognized during the quarter ended April 4, 2025, which did not reoccur in 2026.
Current report
Our gross margin increased by 18.2 percentage points from 20.3% for the quarter ended April 4, 2025 to 38.5% for the quarter ended April 3, 2026. The increase was primarily driven by the absence of prior‑year excess and obsolete inventory charges and consumables write-off, slightly improved manufacturing utilization and favorable mix within certain business segments, partially offset by lower volumes in select end‑markets.
Current report
PSG gross profit increased by $77.2 million, primarily driven by higher revenue across all end‑markets and improved absorption resulting from higher manufacturing utilization. PSG gross margin increased by 8.1 percentage points to 27.2% from 19.1%, primarily due to the absence of a $43.9 million write‑off of consumables and manufacturing supplies charges during the quarter ended April 4, 2025, as well as improved utilization and operating leverage on higher volumes during the quarter ended April 3, 2026.
Current report
AMG gross profit decreased by $11.3 million, primarily driven by the decline in demand within the automotive and other end-markets. AMG gross margin increased by 0.5 percentage points to 53.6% from 53.1%, primarily due to product mix, including a higher proportion of higher‑margin offerings, which partially offset the impact of lower overall volume.
Current report
ISG gross profit increased by $223.4 million and gross margin increased to 39.4% from (55.6)%, primarily due to the absence of $232.2 million of excess and obsolete inventory charges recognized during the quarter ended April 4, 2025, which did not reoccur during the quarter ended April 3, 2026.
Current report
General and administrative expenses were $89.4 million for the quarter ended April 3, 2026, as compared to $84.4 million for the quarter ended April 4, 2025, representing an increase of $5.0 million, or approximately 6%. The increase was primarily attributable to higher payroll‑related expenses, including increased investments in corporate and operational support functions.
Current report
Amortization of intangible assets was $10.5 million for the quarter ended April 3, 2026, as compared to $11.4 million for the quarter ended April 4, 2025, representing a decrease of $0.9 million, or approximately 8%.
Current report
Income Tax Benefit
Current report
Our cash flows from operating activities were $239.1 million and $602.3 million for the quarters ended April 3, 2026 and April 4, 2025, respectively. The decrease in operating cash flows by $363.2 millions was primarily driven by unfavorable changes in working capital, including the timing of cash receipts and payments.
Current report
Net loss for the quarter ended April 3, 2026 improved compared to the prior‑year period, primarily due to lower non‑cash asset impairment and restructuring‑related charges, partially offset by accelerated depreciation and amortization expense for ROU assets and related improvements that were abandoned in connection with the 2025 and 2026 Manufacturing Realignment Programs. However, these improvements in earnings did not directly translate to higher operating cash flows, as working capital requirements had a more significant impact on cash generation during the period.
Current report
Our ability to generate positive operating cash flows depends on, among other factors, the achievement of revenue targets, management of manufacturing and operating costs and effective management of working capital. The timing of collections from customers, payments to suppliers and inventory management also significantly influences our operating cash flows.
Removed paragraphs (48)
Previous report
We offer intelligent power and intelligent sensing solutions that drive the transformation of automotive and industrial markets, while also meeting the increasing needs of AI and data centers. Our intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers efficient fast-charging systems and propels sustainable energy for the highest efficiency solar strings and industrial power. Our intelligent power solutions for the automotive industry allow our customers to exceed range targets with lower weight and reduce system cost through efficiency. Our intelligent sensing technologies support the next generation industry, allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible.
Previous report
During the first quarter of 2025, we announced restructuring and cost reduction initiatives based on an evaluation of our operating structure, business strategy, manufacturing technologies and internal capabilities to realign our internal manufacturing capacity and capabilities with anticipated long-term needs.
Previous report
Additionally, during the nine months ended October 3, 2025, we recorded $235.8 million relating to excess and obsolete inventory charges, of which $230.3 million related to inventory primarily considered work in progress within the ISG reportable segment, as well as $45.7 million related to write-off of consumables, manufacturing supplies and obligations for certain unfulfilled purchase commitments due to the manufacturing capacity reduction actions associated with the 2025
Previous report
Manufacturing Realignment Program. These charges were recorded within Cost of revenue in the Consolidated Statement of Operations.
Previous report
Revenue from PSG decreased by $91.8 million, or approximately 11%, for the quarter ended October 3, 2025 compared to the quarter ended September 27, 2024. Revenue from our Automotive Power Division, Multi-Market Power Division and Industrial Power Division decreased by $69.6 million, $19.6 million and $2.6 million, respectively, primarily due to the continued decrease in demand in the automotive and industrial end-markets.
Previous report
Revenue from AMG decreased by $70.4 million, or approximately 11%, for the quarter ended October 3, 2025 compared to the quarter ended September 27, 2024. Revenue from our Sensor Interface Division increased by $25.3 million primarily due to an increase in industrial demand offset by decreases within our Power Management Division and Integrated Circuit Division of $71.2 million and $24.5 million, respectively, primarily due to the continued decrease in demand in the automotive and other end-markets.
Previous report
Revenue from ISG decreased by $48.8 million, or approximately 18%, for the quarter ended October 3, 2025 compared to the quarter ended September 27, 2024. Revenue from our Industrial and Consumer Solutions Division and Automotive Sensing Division decreased by $0.7 million and $48.1 million, respectively, primarily due to the continued decrease in demand in the automotive and industrial end-markets.
Previous report
Gross profit decreased by $212.2 million, or approximately 27%, to $587.2 million for the quarter ended October 3, 2025 compared to $799.4 million for the quarter ended September 27, 2024 primarily attributable to a continued decrease in sales volume from existing products and new products that negatively impacted gross profit by approximately $188.2 million and $24.0 million, respectively.
Previous report
PSG gross profit decreased by $134.7 million, primarily driven by the decline in sales volume from existing products and new products, which negatively impacted gross profit by approximately $110.7 million and $24.0 million, respectively. PSG gross margin decreased by 13.1 percentage points to 28.5% from 41.6% as a result of significant underutilization, decline in sales volume, impact of unfavorable product mix and market pressures.
Previous report
AMG gross profit decreased by $29.2 million, primarily driven by the decline in sales volume from existing products. AMG gross margin increased by 1.0 percentage point to 50.8% from 49.8%, primarily due to the reduction in lower-margin manufacturing services revenue at our EFK location.
Previous report
ISG gross profit decreased by $48.3 million, primarily driven by the decline in sales volume from existing products. ISG gross margin decreased to 35.2% from 46.3%, primarily due to unfavorable product mix and market pressures as well as the result of certain strategy changes in connection with the 2025 Manufacturing Realignment Program.
Previous report
General and administrative expenses were $87.3 million for the quarter ended October 3, 2025, as compared to $95.5 million for the quarter ended September 27, 2024, representing a decrease of $8.2 million, or approximately 9%. The decrease was primarily attributable to an increase in payroll-related expenses offset by lower third-party acquisition-related costs.
Previous report
Amortization of intangible assets was $11.2 million for the quarter ended October 3, 2025, as compared to $13.0 million for the quarter ended September 27, 2024, representing a decrease of $1.8 million, or approximately 14%.
Previous report
Income Tax Provision
Previous report
Results of Operations
Previous report
Nine Months Ended October 3, 2025 compared to the Nine Months Ended September 27, 2024
Previous report
Revenue
Previous report
Revenue was $4,465.3 million and $5,359.8 million for the nine months ended October 3, 2025 and September 27, 2024, respectively, representing a decrease of $894.5 million, or approximately 17%, year over year. We had one customer, a distributor, whose revenue accounted for approximately 13% and 11% of our total revenue for the nine months ended October 3, 2025 and September 27, 2024, respectively.
Previous report
Revenue from PSG
Previous report
Revenue from PSG decreased by $457.9 million, or approximately 18%, for the nine months ended October 3, 2025 compared to the nine months ended September 27, 2024. Revenue from our Automotive Power Division, Multi-Market Power Division and Industrial Power Division decreased by $328.8 million, $114.4 million and $14.7 million, respectively, primarily due to the continued decrease in demand in the automotive and industrial end-markets.
Previous report
Revenue from AMG
Previous report
Revenue from AMG decreased by $292.9 million, or approximately 15%, for the nine months ended October 3, 2025 compared to the nine months ended September 27, 2024. Revenue from our Sensor Interface Division, Power Management Division and Integrated Circuit Division decreased by $63.6 million, $201.3 million and $28.0 million, respectively, primarily due to the continued decrease in demand in the automotive and industrial end-markets.
Previous report
Revenue from ISG
Previous report
Revenue from ISG decreased by $143.7 million, or approximately 17%, for the nine months ended October 3, 2025 compared to the nine months ended September 27, 2024, largely driven by a decrease in revenue from our Industrial and Consumer Solutions Division and Automotive Sensing Division of $23.8 million and $119.9 million, respectively, primarily due to the continued decrease in demand in the automotive and industrial end-markets as well as the result of certain strategy changes in connection with the 2025 Manufacturing Realignment Program.
Previous report
Revenue by Geographic Location
Previous report
Gross Profit and Gross Margin
Previous report
Gross profit decreased by $1,004.1 million, or approximately 41%, to $1,432.9 million for the nine months ended October 3, 2025 compared to $2,437.0 million for the nine months ended September 27, 2024. We recorded excess and obsolete inventory charges of $235.8 million, of which $230.3 million related to inventory primarily considered work in progress within the ISG reportable segment, as a result of changes in business strategy due to the 2025 Manufacturing Realignment Program. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' for additional information. We also continued to experience a significant decrease in sales volume from existing products and new products that negatively impacted gross profit by approximately $635.5 million and $132.8 million, respectively.
Previous report
PSG gross profit decreased by $544.9 million, primarily driven by the decline in sales volume from existing products and new products, which negatively impacted gross profit by approximately $412.1 million and $132.8 million, respectively. Also included in the gross profit decrease was the $43.9 million write-off of consumables and manufacturing supplies associated with the manufacturing capacity reduction actions taken under the 2025 Manufacturing Realignment Program. PSG gross margin decreased by 17.0 percentage points to 24.7% from 41.7% as a result of the decline in sales volume, significant underutilization, the related impact of unfavorable product mix and the impact of the consumables and manufacturing supplies write-off discussed above.
Previous report
AMG gross profit decreased by $107.2 million, primarily driven by the decline in sales volume from existing products. AMG gross margin increased by 2.2% percentage points to 51.5% from 49.3%, primarily due to the reduction in lower-margin manufacturing services revenue at our EFK location.
Previous report
ISG gross profit decreased by $352.0 million, primarily driven by the excess and obsolete inventory charges discussed above. Additionally, the decline in sales volume from existing products added to the decrease. ISG gross margin decreased to 5.9% from 47.6%, primarily due to the excess and obsolete inventory charges as a result of certain strategy changes in connection with the 2025 Manufacturing Realignment Program.
Previous report
Operating Expenses
Previous report
Research and development expenses were$449.8 million for the nine months ended October 3, 2025, as compared to$457.5 million for the nine months ended September 27, 2024, representing a decrease of $7.7 million, or approximately 1.7%. The decrease was primarily attributable to a decrease in production supplies, outside services and payroll-related expenses.
Previous report
Selling and marketing expenses were$194.4 million for the nine months ended October 3, 2025, as compared to$203.1 million for the nine months ended September 27, 2024, representing a decrease of $8.7 million, or approximately 4%. The decrease was primarily attributable to a decrease in payroll-related expenses.
Previous report
Generaland administrative expenses were $262.9 million for the nine months ended October 3, 2025, as compared to $275.8 million for the nine months ended September 27, 2024, representing a decrease of $12.9 million, or approximately 5%. The decrease was primarily attributable to decreased third-party acquisition-related costs.
Previous report
Other Operating Expenses
Previous report
Amortization of Intangible Assets
Previous report
Amortization of intangible assets was$33.6 million and$38.5 million for the nine months ended October 3, 2025 and September 27, 2024, respectively, representing a decrease of $4.9 million, or approximately 13%.
Previous report
Restructuring, asset impairments and other, net was$608.1 million for the nine months ended October 3, 2025, as compared to$103.0 million for the nine months ended September 27, 2024, representing an increase of $505.1 million. Charges incurred for the nine months ended October 3, 2025 primarily relate to restructuring actions during the period. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Previous report
Interest Expense
Previous report
Interest expense increased by $6.6 million to$53.6 million during the nine months ended October 3, 2025, as compared to$47.0 million during the nine months ended September 27, 2024. Our average gross long-term debt balance for the nine months ended October 3, 2025 was $3,379.9 million at a weighted-average interest rate of 2.1%, as compared to $3,379.9 million at a weighted-average interest rate of 1.9% for the nine months ended September 27, 2024.
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Reworded paragraphs (17)
Previous wording
We believe the evolution of the automotive industry, with advancements in autonomous driving, ADAS, vehicle electrification, and the increase in electronics content for vehicle platforms, is reshaping the boundaries of transportation. Through sensing integration, we believe our intelligent power solutions achieve superior efficiencies compared to our peers. This integration allows lower temperature operation and reduced cooling requirements while saving costs and minimizing weight. In addition, our power solutions deliver power with less die per module, achieving higher range for a given battery capacity.
Current wording
We believe the evolution of the automotive industry, with advancements in autonomous driving, ADAS, vehicle electrification, and increased electronics content across vehicle platforms, is reshaping the boundaries of transportation. Through sensing integration, we believe our intelligent power solutions achieve increased efficiencies compared to our peers. This integration allows lower temperature operation and reduced cooling requirements while saving costs and minimizing weight. In addition, our power solutions deliver power with less die per module, improving performance efficiency for a given battery or power capacity.
Previous wording
We are focused on generating operating cash and returning capital to our shareholders through our Share Repurchase Program. Our goal is to achieve revenue growth with stable gross margins by capitalizing on high-growth megatrends in our primary end-markets of automotive and industrial infrastructure. Despite the current challenges posed by geopolitical and macroeconomic factors, we continue to optimize and right-size our manufacturing footprint to align our capacity with anticipated long-term growth, while focused on generating efficiencies to manage these headwinds. We design products for differentiated markets, focusing on addressing customer needs. We aim to achieve efficiencies in our operating and capital expenditures and invest in research and development initiatives to accelerate growth in high-margin products.
Current wording
We are focused on increasing profitable revenue through differentiated technologies to address the high-growth megatrends in automotive, industrial and other markets which include AI data centers. We continue to optimize and right-size our manufacturing footprint to align our capacity with our long-term outlook, while focusing on generating efficiencies that result in meaningful gross margin expansion and operating cash flows. We intend to achieve efficiencies in our operating and capital expenditures and invest in research and development initiatives to accelerate growth in high-margin products.
Previous wording
We expect to incur total severance costs and related benefit expenses of $67 million related to the termination of approximately 2,400 employees. Of this, approximately $2.8 million and $65.9 million was recognized during the quarter and nine months ended October 3, 2025, respectively. Additionally, we recorded non-cash impairment charges of $15.8 million and $487.9 million during the quarter and nine months ended October 3, 2025, respectively, related to previous investments in manufacturing equipment at certain manufacturing facilities pursuant to held-for-sale accounting guidance. Other charges of $1.0 million and $51.5 million for the quarter and nine months ended October 3, 2025, respectively, comprised of estimated costs associated with selling the equipment and contract termination costs, were incurred as a result of the above initiatives. The total of the aforementioned costs was included within Restructuring, Asset Impairments and Other, Net in the Consolidated Statement of Operations.
Current wording
Additionally, we recorded non-cash impairment charges of $147.0 million during the quarter ended April 3, 2026 related to previous investments in manufacturing equipment at certain manufacturing facilities pursuant to held-for-sale accounting guidance. Other charges of $162.1 million for the quarter ended April 3, 2026 consisted primarily of accelerated depreciation of leasehold improvements and accelerated amortization of ROU assets that were abandoned in connection with the 2025 and 2026 Manufacturing Realignment Programs. The total of the aforementioned costs was included within Restructuring, Asset Impairments and Other, Net in the Consolidated Statement of Operations.
Previous wording
During the quarter ended October 3, 2025, we repurchased approximately 6.1 million shares of common stock for an aggregate purchase price of $328.2 million. During the nine months ended October 3, 2025, we repurchased approximately 19.1 million shares of common stock for an aggregate purchase price of $933.8 million. For additional information, see Note 8: ''Earnings Per Share and Equity'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Current wording
During the quarter ended April 3, 2026, we repurchased approximately 5.7 million shares of common stock for an aggregate purchase price of $348.6 million. For additional information, see Note 8: ''Earnings Per Share and Equity'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Previous wording
Revenue was $1,550.9 million and $1,761.9 million for the quarters ended October 3, 2025 and September 27, 2024, respectively, representing a decrease of $211.0 million, or approximately 12%, year over year. We had one customer, a distributor, whose revenue accounted for approximately 12% of our total revenue for the quarters ended October 3, 2025 and September 27, 2024 across all reportable segments.
Current wording
Revenue was $1,513.3 million and $1,445.7 million for the quarters ended April 3, 2026 and April 4, 2025, respectively, representing an increase of $67.6 million, or approximately 5%, year over year due to increased demand across all end-markets. We had one customer, a distributor, whose revenue accounted for approximately 12% and 10% of our total revenue for the quarters ended April 3, 2026 and April 4, 2025, respectively, across all reportable segments.
Previous wording
Research and development expenses were $141.9 million for the quarter ended October 3, 2025, as compared to $151.0 million for the quarter ended September 27, 2024, representing a decrease of $9.1 million, or approximately 6%. The decrease was primarily attributable to a decrease in production supplies and outside services.
Current wording
Research and development expenses were $144.3 million for the quarter ended April 3, 2026, as compared to $164.1 million for the quarter ended April 4, 2025, representing a decrease of $19.8 million, or approximately 12%. The decrease was primarily attributable toa decrease in production material costs and other variable expenses.
Previous wording
Selling and marketing expenses were $62.8 million for the quarter ended October 3, 2025, as compared to $65.4 million for the quarter ended September 27, 2024, representing a decrease of $2.6 million, or approximately 4%. The decrease was primarily attributable to a decrease in payroll-related expenses.
Current wording
Selling and marketing expenses were $63.0 million for the quarter ended April 3, 2026, as compared to $68.3 million for the quarter ended April 4, 2025, representing a decrease of $5.3 million, or approximately 8%. The decrease was primarily attributable to lower payroll‑related expenses and reduced commission costs.
Previous wording
Restructuring, asset impairments and other, net was $19.6 million for the quarter ended October 3, 2025, as compared to $29.1 million for the quarter ended September 27, 2024. Charges incurred for the quarter ended October 3, 2025 primarily relate to restructuring actions during the period. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Current wording
Restructuring, asset impairments and other, net was $329.3 million for the quarter ended April 3, 2026, as compared to $539.3 million for the quarter ended April 4, 2025. Charges incurred for the quarter ended April 3, 2026 relate to restructuring actions during the period. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' in the notes to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information.
Previous wording
Interest expense increased by $2.0 million to $17.7 million during the quarter ended October 3, 2025, as compared to $15.7 million during the quarter ended September 27, 2024. Our average gross long-term debt for the quarter ended October 3, 2025 was $3,379.9 million at a weighted-average interest rate of 2.1%, as compared to $3,379.9 million at a weighted-average interest rate of 1.9% for the quarter ended September 27, 2024.
Current wording
Interest expense decreased by $5.3 million to $12.7 million during the quarter ended April 3, 2026, as compared to $18.0 million during the quarter ended April 4, 2025, due to the repayment of the Revolving Credit Facility on December 31, 2025. Our average gross long-term debt for the quarter ended April 3, 2026 was $3,004.9 million at a weighted-average interest rate of 1.7%, as compared to $3,379.9 million at a weighted-average interest rate of 2.1% for the quarter ended April 4, 2025.
Previous wording
Interest income decreased by $5.9 million, or approximately 21%, to $22.7 million during the quarter ended October 3, 2025 compared to $28.6 million during the quarter ended September 27, 2024 primarily related to lower interest rates on short-term investments.
Current wording
Interest income decreased by $8.9 million, or approximately 33%, to $17.7 million during the quarter ended April 3, 2026 compared to $26.6 million during the quarter ended April 4, 2025. The decrease was primarily attributable to lower interest rates earned on cash equivalents and short‑term investments, as well as lower average cash and investment balances during the period.
Previous wording
During the quarter ended October 3, 2025, other income was $3.6 million compared to other expense of $3.7 million during the quarter ended September 27, 2024, primarily driven by higher dividend income.
Current wording
During the quarter ended April 3, 2026, other income was $3.8 million compared to other expense of $4.1 million during the quarter ended April 4, 2025.
Previous wording
We recorded an income tax provision of $17.7 million and $51.9 million for the quarters ended October 3, 2025 and September 27, 2024, respectively, representing effective tax rates of 6.5% and 11.4%, respectively. The change in the effective tax rate for the quarter was primarily driven by a return-to-provision adjustment recorded upon finalizing the U.S. federal income tax return, which resulted in a discrete tax benefit.
Current wording
We recorded an income tax benefit of $11.7 million and $75.8 million for the quarters ended April 3, 2026 and April 4, 2025, respectively, representing effective tax rates of 26.2% and 13.5%, respectively. The higher effective tax rate in 2026 was due to the impact of discrete benefits recognized during the quarter.
Previous wording
Our principal sources of liquidity are cash on hand, short-term investments, cash generated from operations, available borrowings under our Revolving Credit Facility as well as new debt and/or equity issuances. In the near term, we expect to fund our cash requirements by utilizing any or a combination of these principal sources. Our cash and cash equivalents and short-term investments were approximately $2.9 billion as of October 3, 2025, and the Revolving Credit Facility has approximately $1.1 billion available for future borrowings.
Current wording
Our principal sources of liquidity are cash on hand, short-term investments, cash generated from operations, available borrowings under our Revolving Credit Facility as well as new debt and/or equity issuances. In the near term, we expect to fund our cash requirements by utilizing any or a combination of these principal sources. Our cash and cash equivalents and short-term investments were approximately $2.4 billion as of April 3, 2026, and the Revolving Credit Facility has approximately $1.5 billion available for future borrowings.
Previous wording
We require cash to: (i) fund our operating expenses, working capital requirements, outlays for strategic acquisitions and investments; (ii) service our debt, including principal and interest; (iii) incur capital expenditures; and (iv) repurchase our common stock. During the ordinary course of business, we evaluate our cash requirements and, if necessary, adjust our expenditures to reflect the current market conditions and our projected sales and demand. Our capital expenditures are primarily directed towards manufacturing equipment. Future capital expenditures may be impacted by events and transactions that are not currently forecasted.
Current wording
We require cash to: (i) fund our operating expenses, working capital requirements, outlays for strategic acquisitions and investments; (ii) service our debt, including principal and interest; (iii) incur capital expenditures; and (iv) repurchase our common stock. During the ordinary course of business, we evaluate our cash requirements and, if necessary, adjust our expenditures to reflect the current market conditions and our projected sales and demand. Future capital expenditures may be impacted by events and transactions that are not currently forecasted.
Previous wording
Our cash flows used in investing activities were $487.8 million and $858.1 million for the nine months ended October 3, 2025 and September 27, 2024, respectively. The decrease of $370.3 million was primarily attributable to a decrease in capital expenditures partially offset by the payments for acquisition of a business during the nine months ended October 3, 2025. Our capital expenditures as a percentage of revenue through Q3 were approximately 6%, and we expect capital expenditures in the range of 5- 6% of revenue for 2025.
Current wording
Our cash flows used in investing activities were $16.7 million and $214.9 million for the quarters ended April 3, 2026 and April 4, 2025, respectively. The decrease of $198.2 million was primarily attributable to a decrease in capital expenditures and a decrease in the payments for acquisition of a business during the quarter ended April 3, 2026. Our capital expenditures as a percentage of revenue were approximately 1%, and we expect capital expenditures of approximately 5% of revenue for the year ended December 31, 2026.
Previous wording
Our cash flows used in financing activities were $939.9 million and $480.5 million for the nine months ended October 3, 2025 and September 27, 2024, respectively. The increase of $459.4 million was primarily attributable to increased share repurchases during the nine months ended October 3, 2025.
Current wording
Our cash flows used in financing activities were $366.0 million and $317.6 million for the quarters ended April 3, 2026 and April 4, 2025, respectively. The increase of $48.4 million was primarily attributable to increased share repurchases during the quarter ended April 3, 2026.
Previous wording
We do not have any meaningful debt maturing during the next 12 months. We expect to continue our Share Repurchase Program subject to market conditions, the price of our shares and other factors (including liquidity needs). However, the Share Repurchase Program may be modified, suspended or terminated by the Board of Directors at any time without prior notice.
Current wording
Our 0% Notes will mature on May 1, 2027 unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. We expect to continue our New Share Repurchase Program subject to market conditions, the price of our shares and other factors (including liquidity needs). However, the New Share Repurchase Program may be modified, suspended or terminated by the Board of Directors at any time without prior notice.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We expect to incur total severance costs and related benefit expenses of $24.0 million related to the termination of approximately 650 employees. Of this, approximately $20.2 million was recognized during the quarter ended April 3, 2026.
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Previous report — wording carried elsewhere
The following table summarizes certain information relating to our operating results that has been derived from our unaudited consolidated financial statements (in millions):
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The following table summarizes certain information relating to our segment results (in millions):
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(1) Gross profit margin as a percentage of respective segment revenue balances.
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Revenue by geographic location, based on sales billed from the respective country or region, was as follows (dollars in millions):
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(1) Certain amounts may not total due to rounding of individual amounts.
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Restructuring, Asset Impairments and Other, Net
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For additional information, see Note 13: ''Income Taxes'' in the notes to the unaudited consolidated financial statements included elsewhere in this Form 10-Q.