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

ON Semiconductor (NASDAQ:ON) announced its quarterly earnings results on Monday. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.02, FiscalAI reports. The business had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.54 billion. ON Semiconductor had a return on equity of 13.60% and a net margin of 5.16%.ON Semiconductor’s revenue was down 11.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.95 earnings per share. 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

Shares of NASDAQ ON opened at $65.10 on Tuesday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 3.54 and a current ratio of 5.23. ON Semiconductor has a one year low of $31.04 and a one year high of $66.86. The firm has a market capitalization of $26.19 billion, a P/E ratio of 84.55, a PEG ratio of 2.83 and a beta of 1.56. The company’s fifty day moving average is $58.39 and its two-hundred day moving average is $53.00.

Insider Activity

In other news, CFO Trent Thad sold 20,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $55.05, for a total transaction of $1,101,000.00. Following the sale, the chief financial officer owned 379,448 shares of the company’s stock, valued at $20,888,612.40. The trade was a 5.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.31% of the company’s stock.

Institutional Trading of ON Semiconductor

Institutional investors have recently made changes to their positions in the stock. Darwin Wealth Management LLC purchased a new stake in ON Semiconductor during the second quarter valued at about $32,000. Geneos Wealth Management Inc. raised its holdings in shares of ON Semiconductor by 61.2% in the 1st 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. MUFG Securities EMEA plc purchased a new position in ON Semiconductor in the second quarter valued at approximately $65,000. Sunbelt Securities Inc. lifted its position in ON Semiconductor by 13.7% during the third quarter. Sunbelt Securities Inc. now owns 1,950 shares of the semiconductor company’s stock valued at $96,000 after buying an additional 235 shares in the last quarter. Finally, Turning Point Benefit Group Inc. purchased a new stake in ON Semiconductor during the third quarter worth approximately $136,000. 97.70% of the stock is owned by hedge funds and other institutional investors.

ON Semiconductor announced that its board has approved a share repurchase plan on Tuesday, November 18th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 32.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

ON Semiconductor News Summary

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

• Positive Sentiment: Strong cash generation and shareholder return — onsemi reported record free cash flow (~$1.4B for 2025) and authorized a new share repurchase program up to $6 billion over three years, supporting buyback-driven EPS upside and capital returns. onsemi Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Product/market positioning — company introduced vertical GaN (vGaN) power semiconductors and announced partnerships (Innoscience MoU, GlobalFoundries collaboration) that position onsemi for higher-value power and AI/automotive opportunities. onsemi Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Mixed quarter delivery — non-GAAP EPS (~$0.64) roughly beat consensus while GAAP EPS and several operating metrics fell year-over-year; the beat on EPS contrasts with top-line weakness, making the print ambiguous for valuation. ON Semiconductor Q4 Earnings: Top Estimates
• Neutral Sentiment: Analyst stance remains mixed/neutral — some brokers keep a hold/neutral view given gradual margin recovery potential from AI and power trends but uncertainty about the near-term rebound. Balanced Outlook on ON Semiconductor
• Negative Sentiment: Revenue and segment declines — Q4 revenue fell ~11% YoY and several business units declined (up to ~17%), driven by persistent inventory glut and weaker power/analog demand; that top-line softness pressured sentiment. Chipmaker Onsemi misses quarterly revenue estimates, shares fall
• Negative Sentiment: Cautious near-term guidance and market reaction — Q1 revenue/EPS ranges are conservative and the market sold off on the mixed print; Quiver/market writeups highlight the drop and note insider sales in recent months. ON Semiconductor Stock Falls on Q4 2025 Earnings

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on ON shares. Stifel Nicolaus increased their price target on shares of ON Semiconductor from $50.00 to $60.00 and gave the stock a “hold” rating in a report on Friday, January 16th. Wells Fargo & Company restated an “overweight” rating on shares of ON Semiconductor in a research report on Tuesday. Robert W. Baird boosted their price target on shares of ON Semiconductor from $48.00 to $56.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 4th. TD Cowen reaffirmed a “buy” rating on shares of ON Semiconductor in a research note on Tuesday, November 4th. Finally, Citigroup restated a “neutral” rating on shares of ON Semiconductor in a report on Tuesday. Twelve investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ON Semiconductor has a consensus rating of “Hold” and an average target price of $60.38.

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.