Companies /Technology

ON Semiconductor Corp

NASDAQ: ON Semiconductors
$72.65
▼ $1.44 (−1.94%) today
Markets closed · 9:51pm ET

Q2 2025 Earnings

Reported Aug 4, 2025, 8:05am ET · SEC source
$0.53
Miss −0.39%
EPS · est. $0.53
$1.5B
Beat +1.21%
Revenue · est. $1.5B
−2.7%
Trailing market
ON vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Aug 4Aug 5report 8:05am ETearnings+0.7%−11.7%
−10%−5%0+5%Aug 4Aug 5earnings+0.7%−11.7%
ON −11.7%S&P 500 +0.7%
−10%−5%0+5%Aug 4Aug 5report 8:05am ETearnings+0.8%−11.7%
−10%−5%0+5%Aug 4Aug 5earnings+0.8%−11.7%
ON −11.7%NASDAQ +0.8%
−12%−6%0Aug 4Aug 12report 8:05am ETearnings+1.9%−9.5%
−12%−6%0Aug 4Aug 12earnings+1.9%−9.5%
ON −9.5%S&P 500 +1.9%
−12%−6%0Aug 4Aug 12report 8:05am ETearnings+2.6%−9.5%
−12%−6%0Aug 4Aug 12earnings+2.6%−9.5%
ON −9.5%NASDAQ +2.6%
−15.58%
Day of report
−1.52%
Next session
−1.81%
One week
+0.19%
30 days

S&P 500 over the same 30 days: +2.84%.

Did ON Beat Earnings? Q2 2025 Results

ON Semiconductor delivered a mixed second quarter, posting revenue of $1.47 billion that edged past the $1.45 billion consensus by 1.21%, while adjusted EPS of $0.53 fell just shy of the $0.53 estimate, missing by 0.39%. The headline numbers, however, masked a difficult year-over-year backdrop, with revenue down 15.4% from $1.74 billion in Q2 2024 as persistent softness across automotive and industrial end markets continued to weigh on all three business segments. The most material pressure came from margin compression, with non-GAAP gross margin contracting to 37.6% from 45.3% a year ago, reflecting ongoing pricing headwinds and lower factory utilization. CEO Hassane El-Khoury pointed to early signs of stabilization and cited next-generation technology wins, including integration of its EliteSiC M3e technology into Xiaomi electric SUV models, as evidence of longer-term positioning. Despite the relatively upbeat tone, shares declined following results. For Q3 2025, onsemi guided revenue of $1.47 billion to $1.57 billion, with non-GAAP EPS of $0.54 to $0.64, suggesting a gradual recovery remains in view.

Key Takeaways
  • Ongoing business transformation resulting in more predictable business model
  • Signs of stabilization across end markets
  • Sequential revenue growth driven by PSG segment (8% sequential increase)
  • Gross margin recovery to 37.6% from Q1 2025's 20.3%
  • Significantly lower restructuring charges ($49.2M vs $539.3M in Q1)

“Our ongoing transformation is resulting in a more predictable business model, reflecting the strength of our strategy and our commitment to long-term value creation. We are beginning to see signs of stabilization across our end markets, and we remain well-positioned to benefit from a market recovery.”

ON Semiconductor CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, onsemi projects GAAP revenue of $1,465 to $1,565 million and non-GAAP revenue of $1,465 to $1,565 million. GAAP gross margin is expected to be 36.4% to 38.4%, with non-GAAP gross margin of 36.5% to 38.5%. GAAP diluted EPS is projected at $0.51 to $0.61, while non-GAAP diluted EPS is expected to be $0.54 to $0.64. GAAP operating expenses are expected to be $294 to $309 million, with non-GAAP operating expenses of $280 to $295 million. Diluted shares outstanding are expected to be approximately 410 million.

ON YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$500.0M$1.0B$1.5B$1.7B$1.5BRevenue$783.9M$551.9MGross Profit$388.5M$193.4MOperating Income$338.2M$170.3MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

ON Revenue by Segment

Power Solutions Group$698.2M−16.0%
Analog and Mixed-Signal Group$555.9M−14.0%
Intelligent Sensing Group$214.6M−15.0%

Figures from SEC filings and company reports. Not investment advice.