Companies /Technology

ON Semiconductor Corp

NASDAQ: ON Semiconductors
$72.65
▼ $1.44 (−1.94%) today
Markets closed · 9:52pm ET

Q4 2025 Earnings

Reported Feb 9, 2026, 4:21pm ET · SEC source
$0.64
Beat +2.63%
EPS · est. $0.62
$1.5B
Miss −0.45%
Revenue · est. $1.5B
−8.8%
Trailing market
ON vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%+12%Feb 9Feb 10report 4:21pm ETearnings−0.2%+12.0%
0+4%+8%+12%Feb 9Feb 10earnings−0.2%+12.0%
ON +12.0%S&P 500 −0.2%
0+4%+8%+12%Feb 9Feb 10report 4:21pm ETearnings−0.4%+12.0%
0+4%+8%+12%Feb 9Feb 10earnings−0.4%+12.0%
ON +12.0%NASDAQ −0.4%
0+7%+14%Feb 9Feb 17report 4:21pm ETearnings−1.6%+17.5%
0+7%+14%Feb 9Feb 17earnings−1.6%+17.5%
ON +17.5%S&P 500 −1.6%
0+7%+14%Feb 9Feb 17report 4:21pm ETearnings−2.3%+17.5%
0+7%+14%Feb 9Feb 17earnings−2.3%+17.5%
ON +17.5%NASDAQ −2.3%
+3.50%
Day of report
+5.64%
Next session
+4.87%
One week
−13.10%
30 days

S&P 500 over the same 30 days: −4.31%.

Did ON Beat Earnings? Q4 2025 Results

ON Semiconductor navigated a bruising revenue environment in Q4 2025 with a modest earnings beat, posting non-GAAP EPS of $0.64 against a consensus estimate of $0.62, a 2.63% beat, even as revenue of $1.53 billion fell just short of the $1.54 billion analyst expectation and declined 11.2% year-over-year. The primary culprit behind the top-line pressure was a broad semiconductor industry downturn that squeezed pricing and drove elevated underutilization costs, compressing non-GAAP gross margin to 38.2% from 45.3% a year ago. For the full year, all three business segments retreated, with revenue falling to $6.00 billion from $7.08 billion in 2024. Against that backdrop, onsemi generated a record $1.42 billion in free cash flow, returning the entirety to shareholders via repurchases. Barclays recently initiated coverage with an equal-weight rating and a $75 price target, flagging high automotive and China exposure as key risks. Looking ahead, management guided Q1 2026 revenue to $1.44 billion to $1.53 billion, projecting sequential stabilization as key markets show early signs of recovery.

Key Takeaways
  • Increasing signs of stabilization in key automotive and industrial markets
  • Record free cash flow margin of 24% for full year 2025
  • Cost structure improvements and operational discipline
  • Major investment cycle completion with new technologies ramping

“We remained disciplined in our execution and met expectations in the fourth quarter as we saw increasing signs of stabilization in our key markets.”

ON Semiconductor CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, onsemi projects GAAP revenue of $1,435 million to $1,535 million and non-GAAP revenue of $1,435 million to $1,535 million. GAAP gross margin is expected at 37.4% to 39.4% and non-GAAP gross margin at 37.5% to 39.5%. GAAP diluted EPS is projected at $0.28 to $0.38, while non-GAAP diluted EPS is expected at $0.56 to $0.66. The company noted increasing signs of stabilization in key markets and expects to benefit from cost structure improvements and margin expansion as conditions improve.

ON YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$500.0M$1.0B$1.5B$1.7B$1.5BRevenue$779.1M$551.0MGross Profit$408.6M$200.1MOperating Income$379.9M$181.8MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

ON Revenue by Segment

Power Solutions Group$724.2M−11.0%
Analog and Mixed-Signal Group$556.3M−9.0%
Intelligent Sensing Group$249.6M−17.0%

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