ON Gears Up to Report Q3 Earnings: What's in the Cards for the Stock?

On Semiconductor ON is slated to release its third-quarter 2025 results on Nov. 3.

For the to-be-reported quarter, ON expects revenues between $1.465 billion and $1.565 billion. Earnings are expected to be in the range of 54-64 cents per share.

The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $1.52 billion, suggesting a decline of 14% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 60 cents per share, up by a penny over the past 30 days and indicates a decline of 39.4% from the figure reported in the year-ago quarter.

On Semiconductor’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining ones, with the average surprise being 1.25%.
 

ON Semiconductor Corporation Price and EPS Surprise

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

Let us see how things are shaping up for the upcoming announcement.

Factors Likely to Have Influenced ON’s Q3 Performance

ON’s third-quarter 2025 is expected to have benefited from stabilization in demand across its end-markets. The company’s diversified manufacturing footprint is expected to have negated the impact of tariffs. ON’s improving market share in China is anticipated to have driven top-line growth.

In the AI data center market, ON Semiconductor is benefiting from a strong portfolio that increases power density and reduces energy loss. These factors are expected to have driven revenues in the to-be-reported quarter.

Ongoing momentum at the Treo platform is expected to have continued in the third quarter of 2025. Treo’s differentiated technology, modular SoC-like design and ability to integrate high and low voltage domains are driving strong customer engagement across all of ON’s end markets, a trend likely to have continued in the to-be-reported quarter.

However, weakness in the Americas and Europe is expected to have negatively impacted the automotive end-market. Flat utilization, as guided by ON management, is expected to have dragged down gross margin, which was expected in the 36.5%-38.5% range (significantly below long-term target of 53%)

What Our Model Says for ON

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

ON currently has an Earnings ESP of -2.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Fair Isaac FICO currently has an Earnings ESP of +0.46% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. Fair Isaac shares have dropped 20.3% in the year-to-date (YTD) period. Fair Isaac is slated to report its fourth-quarter fiscal 2025 results on Nov. 5.

CoreWeave CRWV currently has an Earnings ESP of +15.66% and sports a Zacks Rank #2. 

CoreWeave shares have surged 227.7% since its initial public offering. CoreWeave is set to report its third-quarter 2025 results on Nov. 10.

EPAM Systems EPAM has an Earnings ESP of +0.52% and a Zacks Rank #3 at present.

EPAM Systems shares have lost 32% YTD. EPAM is scheduled to report its third-quarter 2025 results on Nov. 6.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research