ON · 10-Q · 2026Q4 · Full report

Income Tax Rate Changes

ON SEMICONDUCTOR CORP · 2026-11-02 · Importance 48 · Surprise 64

The quarterly income tax provision increased to $84.9 million from $17.7 million, and the effective tax rate rose to 21.3% from 6.5%. For the nine months, onsemi recorded a $116.6 million tax provision compared with a $27.6 million tax benefit in the prior-year period, while the effective rate was 18.6% versus 32.2%. The comparisons primarily reflect a discrete 2025 tax benefit from a return-to-provision adjustment after finalizing the 2024 U.S. federal income tax return, whose impact was amplified by lower prior-year pretax income.

Key facts

• Quarterly effective tax rate was 21.3%, compared with 6.5% in the prior-year quarter; the increase primarily reflected a discrete 2025 tax benefit from a return-to-provision adjustment after finalizing the 2024 U.S. federal return. source
• Nine-month effective tax rate was 18.6%, compared with 32.2% in the prior-year period; the change primarily reflected a discrete 2025 return-to-provision tax benefit related to the finalized 2024 U.S. federal return. source