ON Semiconductor's Q3 Earnings Beat Estimates, Revenues Up Y/Y

ON Semiconductor ON reported third-quarter 2025 non-GAAP earnings of 63 cents per share, which beat the Zacks Consensus Estimate by 5% and plunged 36.4% year over year.

Revenues of $1.55 billion beat the Zacks Consensus Estimate by 2.6% and increased 5.6% on a year-over-year basis.

ON’s Quarter Details

Power Solutions Group revenues of $737.6 million (contributed 47.6% to revenues) increased 5.6% year over year. Analog & Mixed Group revenues of $583.3 million (37.6% of revenues) increased 4.9% on a year-over-year basis. Intelligent Sensing Group revenues of $230 million (14.8% of revenues) increased 7.2% 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% compared with 54.5% reported in the year-ago quarter.

Non-GAAP operating expenses decreased 4.4% year over year to $291.2 million. As a percentage of revenues, operating expenses increased 200 bps year over year.

Non-GAAP operating margin was 19.2% compared with 33.8% reported in the year-ago quarter.

ON’s Balance Sheet & Cash Flow

As of Oct. 3, 2025, ON had cash and cash equivalents of $2.87 billion compared with $2.83 billion as of July 4, 2025. 

Long-term debt, as of Oct. 3, 2025, was $3.35 billion, unchanged sequentially.

Third-quarter 2025 cash flow from operations amounted to $418.7 million compared with the previous quarter’s reported figure of $184.3 million.

Free cash flow amounted to $372.4 million compared with free cash flow of $106.1 million in the previous quarter.

ON Offers Q4 Guidance

For the fourth quarter of 2025, onsemi expects revenues between $1.48 billion and $1.58 billion.

Non-GAAP gross margin is projected to be in the range of 37-39%. 

Non-GAAP operating expenses are expected to be in the range of $282-$297 million.

Non-GAAP earnings are expected to be between 57 cents per share and 67 cents per share.

ON’s Zacks Rank & Stocks to Consider

ON Semiconductor currently has a Zacks Rank #3 (Hold).

Fair Isaac FICO, StoneCo STNE and Simulations Plus SLP are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Fair Isaac shares have dropped 16.6% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo shares have returned 138.5% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.  
 
Simulations Plus shares have dropped 38.4% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1. 

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

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