ON Semiconductor Q2 Revenue Down 15.36% YoY, CEO Sees Market Stabilization Ahead

ON Semiconductor reported Q2 2025 revenue down 15.36% YoY to $1.47 bln, topping consensus, and adjusted EPS of 53 cents in line with consensus. Revenue from Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group declined 16%, 14%, and 15% YoY, respectively. The company expects Q3 adjusted revenue of $1.465 bln-$1.565 bln and adjusted EPS of 54 cents to 64 cents. ON Semiconductor CEO Hassane El-Khoury sees early signs of stabilization in key end markets and remains optimistic about the company's prospects.

ON Semiconductor (NASDAQ: ON) reported its fiscal second-quarter 2025 results, with revenue declining 15.36% year-on-year (YoY) to $1.47 billion, beating analyst consensus estimates of $1.45 billion. The adjusted earnings per share (EPS) came in at 53 cents, in line with analyst expectations [1]. Revenue from the Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG) declined 16%, 14%, and 15% YoY, respectively.

The company expects third-quarter adjusted revenue of $1.465 billion to $1.565 billion and adjusted EPS of 54 cents to 64 cents, slightly above analyst consensus estimates of $1.490 billion and 58 cents, respectively [1]. ON Semiconductor CEO Hassane El-Khoury noted early signs of stabilization in key end markets and expressed optimism about the company's prospects. He highlighted the strategic partnership with Xiaomi, which now features advanced 800V drive platforms in select electric SUV models [2].

Despite the mixed results, the stock traded lower by 7.69% to $52.47 immediately after the announcement [3]. ON Semiconductor's free cash flow was $106.1 million, down sharply from $349.7 million in the year-ago quarter, indicating the impact of the revenue decline on profitability.

Overall, while the quarterly results show signs of stabilization, investors should closely monitor the company's ability to execute its long-term strategy and adapt to market conditions.

References:
[1] https://uk.finance.yahoo.com/news/semiconductor-faces-pricing-pressures-ceo-135017965.html
[2] https://www.investing.com/news/earnings/on-semi-q2-earnings-fall-as-margins-narrow-co-says-demand-stabilizes-4167834
[3] http://money.mymotherlode.com/clarkebroadcasting.mymotherlode/article/stockstory-2025-8-4-onsemi-nasdaqon-q2-beats-on-revenue-but-stock-drops