We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is ON Semiconductor Corp. (ON) Down 11.6% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for ON Semiconductor Corp. (ON - Free Report) . Shares have lost about 11.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ON Semiconductor Corporation before we dive into how investors and analysts have reacted as of late.
ON Semiconductor's Q4 Earnings Beat Estimates, Revenues Down Y/Y
onsemi reported fourth-quarter 2025 non-GAAP earnings of 64 cents per share, which beat the Zacks Consensus Estimate by 3.23% but plunged 32.6% year over year.
Revenues of $1.53 billion missed the Zacks Consensus Estimate by 0.19% and decreased 11.2% on a year-over-year basis.
ON’s Q4 Quarter Details
Power Solutions Group's revenues of $724.2 million (contributed 47.3% to revenues) decreased 10.5% year over year. Analog & Mixed Group revenues of $556.3 million (36.4% of revenues) decreased 8.9% on a year-over-year basis. Intelligent Sensing Group revenues of $249.6 million (16.3% of revenues) decreased 17.5% year over year.
Non-GAAP gross margin was 38.2% compared with 45.3% reported in the year-ago quarter.
Non-GAAP operating expenses decreased 12.2% year over year to $282 million. As a percentage of revenues, operating expenses decreased 20 bps year over year.
Non-GAAP operating margin was 19.8% compared with 26.7% reported in the year-ago quarter.
ON’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, ON had cash and cash equivalents of $2.55 billion compared with $2.87 billion as of Oct. 3, 2025. Long-term debt, as of Dec. 31, 2025, was $2.98 billion, down 11.1% sequentially.
Fourth-quarter 2025 cash flow from operations amounted to $554.5 million compared with the previous quarter’s reported figure of $418.7 million.
Free cash flow amounted to $485.4 million compared with free cash flow of $372.4 million in the previous quarter.
ON Offers Q1 Guidance
For the first quarter of 2026, onsemi expects revenues between $1.44 billion and $1.54 billion. Non-GAAP gross margin is projected to be in the range of 37.5-39.5%.
Non-GAAP operating expenses are expected to be in the range of $285-$300 million.
Non-GAAP earnings are expected to be between 56 cents and 66 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, ON Semiconductor Corp. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, ON Semiconductor Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is ON Semiconductor Corp. (ON) Down 11.6% Since Last Earnings Report?
A month has gone by since the last earnings report for ON Semiconductor Corp. (ON - Free Report) . Shares have lost about 11.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ON Semiconductor Corporation before we dive into how investors and analysts have reacted as of late.
ON Semiconductor's Q4 Earnings Beat Estimates, Revenues Down Y/Y
onsemi reported fourth-quarter 2025 non-GAAP earnings of 64 cents per share, which beat the Zacks Consensus Estimate by 3.23% but plunged 32.6% year over year.
Revenues of $1.53 billion missed the Zacks Consensus Estimate by 0.19% and decreased 11.2% on a year-over-year basis.
ON’s Q4 Quarter Details
Power Solutions Group's revenues of $724.2 million (contributed 47.3% to revenues) decreased 10.5% year over year. Analog & Mixed Group revenues of $556.3 million (36.4% of revenues) decreased 8.9% on a year-over-year basis. Intelligent Sensing Group revenues of $249.6 million (16.3% of revenues) decreased 17.5% year over year.
Non-GAAP gross margin was 38.2% compared with 45.3% reported in the year-ago quarter.
Non-GAAP operating expenses decreased 12.2% year over year to $282 million. As a percentage of revenues, operating expenses decreased 20 bps year over year.
Non-GAAP operating margin was 19.8% compared with 26.7% reported in the year-ago quarter.
ON’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, ON had cash and cash equivalents of $2.55 billion compared with $2.87 billion as of Oct. 3, 2025. Long-term debt, as of Dec. 31, 2025, was $2.98 billion, down 11.1% sequentially.
Fourth-quarter 2025 cash flow from operations amounted to $554.5 million compared with the previous quarter’s reported figure of $418.7 million.
Free cash flow amounted to $485.4 million compared with free cash flow of $372.4 million in the previous quarter.
ON Offers Q1 Guidance
For the first quarter of 2026, onsemi expects revenues between $1.44 billion and $1.54 billion. Non-GAAP gross margin is projected to be in the range of 37.5-39.5%.
Non-GAAP operating expenses are expected to be in the range of $285-$300 million.
Non-GAAP earnings are expected to be between 56 cents and 66 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, ON Semiconductor Corp. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, ON Semiconductor Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.