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.
ON Semiconductor's Q2 Earnings Lag Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Key Takeaways
{\"0\":\"ON posted Q2 earnings of $0.53 per share, missing estimates and falling 44.8% year over year.\",\"1\":\"Revenues of $1.47B beat estimates but declined 15.4%, led by weakness in automotive and industrial.\",\"2\":\"ON guides Q3 revenues of $1.465B-$1.565B, and EPS between $0.54 and $0.64 amid margin pressures.\"}
ON Semiconductor (ON - Free Report) reported second-quarter 2025 non-GAAP earnings of 53 cents per share, which missed the Zacks Consensus Estimate by 1.85% and plunged 44.8% year over year.
Revenues of $1.47 billion beat the Zacks Consensus Estimate by 1.5% but declined 15.4% on a year-over-year basis. The reported figure was above the mid-point of the company’s guidance range of $1.4 to $1.5 billion.
In terms of end markets, Automotive (50% of revenues) revenues were $733.2 million, down 19.2% year over year. Industrial (27.7% of revenues) end-market (including military, aerospace, and medical) revenues declined 13.2% year over year to $406.2 million. Others (2.4% of revenues) end-market revenues declined 8.6% year over year to $329.3 million.
Power Solutions Group revenues of $698.2 million (contributed 47.5% to revenues) fell 16.4% year over year. Analog & Mixed Group revenues of $555.9 million (37.8% of revenues) declined 14.2% on a year-over-year basis. Intelligent Sensing Group revenues of $214.6 million (14.6% of revenues) fell 14.9% year over year.
Non-GAAP gross margin contracted 770 basis points (bps) year over year to 37.6% but was slightly above the mid-point of management’s guidance range of 36.5% to 38.5%.
Non-GAAP operating expenses decreased 3.5% year over year to $297.7 million and were above the mid-point of ON Semiconductor’s guidance of $285-$300 million. As a percentage of revenues, operating expenses increased 250 bps year over year.
Non-GAAP operating margin was 17.3% compared with 27.5% reported in the year-ago quarter.
ON’s Balance Sheet & Cash Flow
As of July 4, 2025, ON had cash and cash equivalents of $2.83 billion compared with $3.01 billion as of April 4, 2025.
Long-term debt, as of July 4, 2025, was $3.35 billion, unchanged sequentially.
Second-quarter 2025 cash flow from operations amounted to $465.8 million compared with the previous quarter’s reported figure of $602.3 million.
Free cash flow amounted to $304.1 million compared with free cash flow of $454.7 million in the previous quarter.
ON Offers Q3 Guidance
For the third quarter of 2025, onsemi expects revenues between $1.465 billion and $1.565 billion.
Non-GAAP gross margin is projected to be in the range of 36.5-38.5%.
Non-GAAP operating expenses are expected to be in the range of $280-$295 million.
Non-GAAP earnings are expected to be between 54 cents per share and 64 cents per share.
ON’s Zacks Rank & Stocks to Consider
On Semiconductor currently has a Zacks Rank #2 (Buy).
Image: Bigstock
ON Semiconductor's Q2 Earnings Lag Estimates, Revenues Fall Y/Y
Key Takeaways
ON Semiconductor (ON - Free Report) reported second-quarter 2025 non-GAAP earnings of 53 cents per share, which missed the Zacks Consensus Estimate by 1.85% and plunged 44.8% year over year.
Revenues of $1.47 billion beat the Zacks Consensus Estimate by 1.5% but declined 15.4% on a year-over-year basis. The reported figure was above the mid-point of the company’s guidance range of $1.4 to $1.5 billion.
In terms of end markets, Automotive (50% of revenues) revenues were $733.2 million, down 19.2% year over year. Industrial (27.7% of revenues) end-market (including military, aerospace, and medical) revenues declined 13.2% year over year to $406.2 million. Others (2.4% of revenues) end-market revenues declined 8.6% year over year to $329.3 million.
ON Semiconductor Corporation Price
ON Semiconductor Corporation price | ON Semiconductor Corporation Quote
ON’s Quarter Details
Power Solutions Group revenues of $698.2 million (contributed 47.5% to revenues) fell 16.4% year over year. Analog & Mixed Group revenues of $555.9 million (37.8% of revenues) declined 14.2% on a year-over-year basis. Intelligent Sensing Group revenues of $214.6 million (14.6% of revenues) fell 14.9% year over year.
Non-GAAP gross margin contracted 770 basis points (bps) year over year to 37.6% but was slightly above the mid-point of management’s guidance range of 36.5% to 38.5%.
Non-GAAP operating expenses decreased 3.5% year over year to $297.7 million and were above the mid-point of ON Semiconductor’s guidance of $285-$300 million. As a percentage of revenues, operating expenses increased 250 bps year over year.
Non-GAAP operating margin was 17.3% compared with 27.5% reported in the year-ago quarter.
ON’s Balance Sheet & Cash Flow
As of July 4, 2025, ON had cash and cash equivalents of $2.83 billion compared with $3.01 billion as of April 4, 2025.
Long-term debt, as of July 4, 2025, was $3.35 billion, unchanged sequentially.
Second-quarter 2025 cash flow from operations amounted to $465.8 million compared with the previous quarter’s reported figure of $602.3 million.
Free cash flow amounted to $304.1 million compared with free cash flow of $454.7 million in the previous quarter.
ON Offers Q3 Guidance
For the third quarter of 2025, onsemi expects revenues between $1.465 billion and $1.565 billion.
Non-GAAP gross margin is projected to be in the range of 36.5-38.5%.
Non-GAAP operating expenses are expected to be in the range of $280-$295 million.
Non-GAAP earnings are expected to be between 54 cents per share and 64 cents per share.
ON’s Zacks Rank & Stocks to Consider
On Semiconductor currently has a Zacks Rank #2 (Buy).
MKS Inc. (MKSI - Free Report) , DoorDash (DASH - Free Report) and Lumentum (LITE - Free Report) are better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MKS shares have declined 11.2% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.
DoorDash shares have appreciated 48% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.
Lumentum shares are up 27% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.