Companies /Technology

ON Semiconductor Corp

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

Q3 2025 Earnings

Reported Nov 3, 2025, 8:05am ET · SEC source
$0.63
Beat +6.64%
EPS · est. $0.59
$1.6B
Beat +2.23%
Revenue · est. $1.5B
+8.4%
Beating market
ON vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Nov 3Nov 4report 8:05am ETearnings−1.1%−6.3%
−6%−3%0Nov 3Nov 4earnings−1.1%−6.3%
ON −6.3%S&P 500 −1.1%
−6%−3%0Nov 3Nov 4report 8:05am ETearnings−1.8%−6.3%
−6%−3%0Nov 3Nov 4earnings−1.8%−6.3%
ON −6.3%NASDAQ −1.8%
−8%−4%0Nov 3Nov 11report 8:05am ETearnings−0.6%−7.3%
−8%−4%0Nov 3Nov 11earnings−0.6%−7.3%
ON −7.3%S&P 500 −0.6%
−8%−4%0Nov 3Nov 11report 8:05am ETearnings−2.0%−7.3%
−8%−4%0Nov 3Nov 11earnings−2.0%−7.3%
ON −7.3%NASDAQ −2.0%
+0.76%
Day of report
−4.32%
Next session
−3.80%
One week
+8.58%
30 days

S&P 500 over the same 30 days: +0.15%.

Did ON Beat Earnings? Q3 2025 Results

ON Semiconductor delivered a solid beat in Q3 2025, posting earnings per share of $0.63 against a consensus estimate of $0.59, a 6.64% positive surprise, while revenue of $1.55 billion topped expectations by 2.23% and came in ahead of the $1.52 billion consensus. The headline numbers masked a more complex picture, however, as revenue fell 12.0% year-over-year from the year-ago quarter, reflecting persistent pricing and mix headwinds that compressed GAAP gross margins to 37.9% from 45.4% a year earlier. The standout metric was free cash flow of $372.40 million, up 22% year-over-year and representing 24% of revenue, driven largely by capital expenditure discipline as spending dropped to $46.30 million from $161.70 million in Q3 2024. All three business segments showed sequential recovery, hinting at a potential cyclical trough. Looking ahead, management guided Q4 2025 revenue of $1.48 billion to $1.58 billion with non-GAAP EPS of $0.57 to $0.67, implying roughly flat sequential performance, even as the company prepares to absorb $200 million to $300 million in non-cash asset impairment and accelerated depreciation charges tied to ongoing manufacturing restructuring.

Key Takeaways
  • Stabilization across core automotive and industrial markets
  • Positive growth in AI-related demand
  • Free cash flow grew 22% year-over-year to 24% of revenue
  • Sequential revenue improvement of 6% across all three segments

“Our third quarter results exceeded expectations, underscoring the strength of our strategy and the resilience of our business model. We're seeing continued signs of stabilization across our core markets, as well as positive growth in AI.”

ON Semiconductor CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, onsemi guides revenue of $1,480 million to $1,580 million, GAAP gross margin of 36.9% to 38.9%, non-GAAP gross margin of 37.0% to 39.0%, GAAP diluted EPS of $0.56 to $0.66, and non-GAAP diluted EPS of $0.57 to $0.67. GAAP operating expenses are expected between $296 million and $311 million, with non-GAAP operating expenses of $282 million to $297 million. Diluted shares outstanding are projected at approximately 405 million.

ON YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$500.0M$1.0B$1.5B$1.8B$1.6BRevenue$799.3M$587.2MGross Profit$445.4M$264.4MOperating Income$401.7M$255.0MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

ON Revenue by Segment

Power Solutions Group$737.6M−11.0%
Analog and Mixed-Signal Group$583.3M−11.0%
Intelligent Sensing Group$230.0M−18.0%

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