onsemi's Q4 Earnings Beat Estimates, Revenues Down Y/Y, Shares Drop

onsemi ON 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 shares were down 4.92% at the time of writing this article.

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.

ON Semiconductor Corporation Price, Consensus and EPS Surprise

ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote

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.

ON’s Zacks Rank & Stocks to Consider

ON currently carries a Zacks Rank #3 (Hold).

Analog Devices ADI, Applied Materials AMAT, and MKS MKSI are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

MKS shares have gained 125.9% in the past 12-month period. MKSI is set to report its fourth-quarter 2025 results on Feb. 17, 2026. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices' shares have gained 58.5% in the past 12-month period. ADI currently carries a Zacks Rank #2 (Buy). The company is scheduled to release first-quarter 2026 results on Feb. 18, 2026.

Applied Materials shares have gained 80.4% in the past 12-month period. AMAT is scheduled to release its first-quarter 2026 results on Feb. 12, 2026. Applied Materials currently carries a Zacks Rank of 2.

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