ON Semiconductor (NASDAQ:ON) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

ON Semiconductor (NASDAQ:ON) announced its earnings results on Monday. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.02, FiscalAI reports. ON Semiconductor had a net margin of 2.02% and a return on equity of 12.11%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the previous year, the firm posted $0.95 earnings per share. ON Semiconductor’s revenue was down 11.2% compared to the same quarter last year. ON Semiconductor updated its Q1 2026 guidance to 0.560-0.660 EPS.

Here are the key takeaways from ON Semiconductor’s conference call:

• Company generated a record 24% free cash flow margin in 2025 (≈$1.4B), repurchased ≈$1.4B of stock and launched a new $6B buyback program, signaling aggressive shareholder returns and strong cash conversion.
• AI data center is a rapidly growing engine — management reported >$250M in AI revenue for 2025, a broad “power tree” product set (Si, SiC, GaN, V‑GaN, VCore), and expects continued acceleration (Q1 AI revenue guided to grow high‑teens % sequentially).
• Product momentum from the Treo platform and other launches is improving design funnel and content: Treo sampling doubled year‑over‑year with a >$1B new design funnel, and automotive zonal architecture design funnel exceeded $400M, driving higher‑margin opportunities.
• GaN strategy broadened — the company plans to sample >30 GaN devices (40–1,200V) in 2026, using foundry partners for lateral GaN and proprietary V‑GaN manufactured in‑house with first revenue expected in 2027, supporting long‑term power density differentiation.
• Manufacturing rationalization (FabRight) cut fab capacity ~12% in 2025 and Q4 utilization was ~68% (≈700 bps underutilization drag), but management expects utilization to rise to the mid‑70s, lower 2026 depreciation (~$45–50M), and margin expansion through 2026 as actions take hold.

ON Semiconductor Price Performance

ON Semiconductor stock opened at $67.33 on Wednesday. The company has a market capitalization of $27.09 billion, a price-to-earnings ratio of 198.04, a PEG ratio of 2.81 and a beta of 1.56. The company has a current ratio of 5.23, a quick ratio of 3.54 and a debt-to-equity ratio of 0.43. ON Semiconductor has a 12 month low of $31.04 and a 12 month high of $68.80. The stock’s 50 day moving average is $58.70 and its 200-day moving average is $53.07.

ON Semiconductor announced that its Board of Directors has initiated a share repurchase program on Tuesday, November 18th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the semiconductor company to buy up to 32.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at ON Semiconductor

In related news, CFO Trent Thad sold 20,000 shares of the business’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $55.05, for a total value of $1,101,000.00. Following the completion of the sale, the chief financial officer directly owned 379,448 shares in the company, valued at $20,888,612.40. The trade was a 5.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.31% of the stock is owned by company insiders.

Institutional Investors Weigh In On ON Semiconductor

A number of large investors have recently added to or reduced their stakes in the stock. Darwin Wealth Management LLC bought a new position in ON Semiconductor during the 2nd quarter worth $32,000. MUFG Securities EMEA plc acquired a new stake in shares of ON Semiconductor during the 2nd quarter worth $65,000. Geneos Wealth Management Inc. increased its position in shares of ON Semiconductor by 61.2% in the first quarter. Geneos Wealth Management Inc. now owns 1,335 shares of the semiconductor company’s stock worth $54,000 after purchasing an additional 507 shares during the period. Sunbelt Securities Inc. raised its stake in ON Semiconductor by 13.7% in the third quarter. Sunbelt Securities Inc. now owns 1,950 shares of the semiconductor company’s stock valued at $96,000 after purchasing an additional 235 shares in the last quarter. Finally, Turning Point Benefit Group Inc. acquired a new position in ON Semiconductor in the third quarter valued at about $136,000. Institutional investors and hedge funds own 97.70% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on ON shares. TD Cowen restated a “buy” rating on shares of ON Semiconductor in a research note on Tuesday. Citigroup boosted their price objective on ON Semiconductor from $66.00 to $68.00 and gave the company a “neutral” rating in a research report on Tuesday. Williams Trading set a $60.00 target price on ON Semiconductor in a research report on Tuesday, November 4th. UBS Group reissued a “neutral” rating on shares of ON Semiconductor in a report on Monday, February 2nd. Finally, B. Riley Financial raised their price objective on shares of ON Semiconductor from $54.00 to $58.00 and gave the stock a “neutral” rating in a report on Tuesday, January 20th. Twelve equities research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $63.76.

Key Stories Impacting ON Semiconductor

Here are the key news stories impacting ON Semiconductor this week:

• Positive Sentiment: Record free cash flow and a large buyback — onsemi reported a record $1.4B of free cash flow for FY‑2025 and authorized a new up-to-$6B share repurchase program, a tangible capital‑return tailwind that supports the stock. onsemi Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: EPS beat and product momentum — the company beat the non‑GAAP EPS consensus (reported $0.64 vs ~$0.62) and highlighted new vGaN power products plus partnerships (GlobalFoundries, Innoscience) that strengthen its power/GaN roadmap. Those wins support upside if demand improves. onsemi Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst reactions mixed but several price‑target raises — some shops raised targets and reiterated the stock’s recovery potential while others stayed cautious; the overall consensus remains mixed/neutral which can keep volatility elevated. ON Semiconductor: Expanding Margins, Strengthening Demand Visibility, and GaN Product Pipeline Support Buy Rating and Higher Price Target
• Neutral Sentiment: Guidance is cautious / in line — onsemi gave Q1 revenue and EPS ranges (Q1 non‑GAAP EPS guidance roughly 0.56–0.66) that imply modest sequential stabilization but not a decisive rebound; investors will watch execution vs. guidance. onsemi Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Revenue decline and segment weakness — Q4 revenue fell ~11% year‑over‑year to ~$1.53B, below some Street expectations; PSG and ISG showed softness and inventory/headwind concerns remain, which pressured sentiment after the print. Chipmaker Onsemi misses quarterly revenue estimates, shares fall
• Negative Sentiment: New risk disclosure on AI integration and ongoing margin pressure — the company flagged strategic, legal and cyber risks tied to AI rollout; gross margins are compressed versus last year, so execution and risk management matter for upside. AI Integration Poses Strategic, Legal, and Cyber Risks for ON Semiconductor

ON Semiconductor Company Profile

ON Semiconductor, which operates under the onsemi brand, is a global supplier of semiconductor components and related solutions. The company designs, manufactures and sells a broad portfolio that includes power and analog devices, discrete components, sensors and custom mixed-signal products. Its offerings are used to manage, convert and sense electrical power and signals across a wide range of electronic systems.

ON Semiconductor serves customers in key end markets such as automotive, industrial, cloud power and communications, as well as consumer and computing applications.