ON Semiconductor Reports Q4 2025 Earnings with AI Growth Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ON?
Source: stocktwits
- Earnings Highlights: ON Semiconductor reported Q4 2025 revenues of $1.53 billion, aligning with market expectations despite an 11% year-over-year decline, while diluted earnings per share of $0.64 exceeded the anticipated $0.62, indicating strong execution amid market stabilization.
- Cash Flow Performance: The company achieved $1.8 billion in cash from operations and $1.4 billion in free cash flow in 2025, marking a record-high free cash flow margin of 24%, showcasing robust financial management and investment capabilities.
- AI Data Center Growth: ON Semiconductor highlighted that AI data centers are emerging as a key growth driver, generating over $250 million in revenue in 2025, reflecting accelerating demand for AI compute infrastructure and positioning the company for future growth.
- Q1 2026 Guidance: The company projected revenues between $1.435 billion and $1.535 billion for Q1 2026, with EPS estimates ranging from $0.56 to $0.66, although the midpoint is below market expectations of $0.61, indicating a stable outlook for the market.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 70.630
Low
50.00
Averages
61.25
High
80.00
Current: 70.630
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ON Semiconductor Rating Change: Tech Stock Pros upgraded ON Semiconductor (ON) from Sell to Hold, noting mixed Q4 results but signs of stabilization in automotive and industrial markets, suggesting the company is moving towards a healthier position post-inventory correction, although EV demand recovery remains critical.
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Onsemi Approaches a Breakout, Supported by Potential Free Cash Flow
Mixed Earnings Report: Onsemi's Q4 2025 earnings report showed mixed results, with revenue falling short of market expectations, but the company affirmed its return to growth and anticipated improvements in margins and cash flow.
Strong Cash Flow and Buybacks: The company reported a record free cash flow margin for 2025, enabling it to utilize 100% of this cash for share buybacks, which is expected to strengthen share prices.
Segment Performance: The Intelligent Sensing Group performed strongly with a 9% year-over-year growth, while other segments like Power Solutions and Analog & Mixed Signal faced challenges, leading to overall mixed performance.
Analyst Sentiment: Analysts have mixed sentiments about Onsemi, with some price target reductions offset by upgrades, indicating a generally favorable outlook for the stock, which is considered fairly valued near its critical resistance point.
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Major Earnings Reports Expected After Monday's Close
- Major Earnings Preview: After the market closes on Monday, key companies such as Prospect Capital Corporation (PSEC), ON Semiconductor Corporation (ON), PennantPark Floating Rate Capital Ltd. (PFLT), and The Goodyear Tire & Rubber Company (GT) are set to release their earnings, which could significantly impact market sentiment.
- Upwork Earnings Release: Upwork (UPWK) is another notable company reporting on Monday, and its performance will be closely watched by investors, potentially influencing its stock price and perceptions of the online labor market.
- Additional Earnings Reports: Other companies scheduled to report after Monday's close include ACGL, ACM, AMKR, BRX, CHGG, CINF, CRBG, DAC, GTM, ICHR, KRC, MEDP, MTW, NTB, PFG, PNNT, SSD, SVM, UDR, and VNO, which may trigger market volatility.
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Market Implications: This adjustment reflects a positive outlook on the stock's performance and potential growth in the market.
See More
On Semiconductor Reports Mixed Q4 Earnings Amid Market Stabilization
- Earnings Performance: On Semiconductor reported a fourth-quarter EPS of 64 cents, surpassing the Wall Street estimate of 62 cents, indicating stability in profitability despite mixed results.
- Revenue Results: The quarterly revenue of $1.53 billion fell short of the consensus estimate of $1.536 billion and decreased from $1.72 billion year-over-year, highlighting a softening market demand.
- Market Outlook: CEO Hassane El-Khoury noted signs of stabilization in key markets, with expectations for first-quarter adjusted EPS ranging from 56 to 66 cents, slightly above the analyst estimate of 61 cents, suggesting cautious optimism.
- Stock Reaction: On Semiconductor shares fell 3.5% to $62.85 in pre-market trading, reflecting a cautious market sentiment despite the earnings beat, indicating investor concerns over revenue shortfalls.
See More
Analysts Adjust Ratings on Semiconductor and AI Infrastructure Stocks
- Celestica Upgrade: Analyst Danil Sereda upgraded Celestica (CLS) from Hold to Buy following strong Q4 results and record hyperscaler bookings, projecting CCS segment revenue to reach $7 billion by 2027, indicating robust growth potential in the market.
- ON Semiconductor Rating Change: Tech Stock Pros upgraded ON Semiconductor (ON) from Sell to Hold, noting mixed Q4 results but signs of stabilization in automotive and industrial markets, suggesting the company is moving towards a healthier position post-inventory correction, although EV demand recovery remains critical.
- RTX Corporation Downgrade: The Value Portfolio downgraded RTX Corporation (RTX) from Buy to Sell, citing a high P/E ratio near 30x with only mid-single-digit growth projected, alongside political risks that could impact margins and future returns for defense contractors.
- Varonis Systems Downgrade: May Investing Ideas downgraded Varonis Systems (VRNS) from Buy to Hold, highlighting decelerating SaaS ARR growth and stagnant net retention rates, indicating that tangible improvements are necessary before the stock becomes attractive again.
See More
Onsemi Approaches a Breakout, Supported by Potential Free Cash Flow
Mixed Earnings Report: Onsemi's Q4 2025 earnings report showed mixed results, with revenue falling short of market expectations, but the company affirmed its return to growth and anticipated improvements in margins and cash flow.
Strong Cash Flow and Buybacks: The company reported a record free cash flow margin for 2025, enabling it to utilize 100% of this cash for share buybacks, which is expected to strengthen share prices.
Segment Performance: The Intelligent Sensing Group performed strongly with a 9% year-over-year growth, while other segments like Power Solutions and Analog & Mixed Signal faced challenges, leading to overall mixed performance.
Analyst Sentiment: Analysts have mixed sentiments about Onsemi, with some price target reductions offset by upgrades, indicating a generally favorable outlook for the stock, which is considered fairly valued near its critical resistance point.
See More
Analysis of Significant Stock Movements Among Companies
- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
- Ichor Holdings Surge: Ichor Holdings' shares soared 37% to a 52-week high due to strong demand driving a fourth-quarter earnings beat, highlighting the recovery potential in the semiconductor equipment market.
See More
Major Earnings Reports Expected After Monday's Close
- Major Earnings Preview: After the market closes on Monday, key companies such as Prospect Capital Corporation (PSEC), ON Semiconductor Corporation (ON), PennantPark Floating Rate Capital Ltd. (PFLT), and The Goodyear Tire & Rubber Company (GT) are set to release their earnings, which could significantly impact market sentiment.
- Upwork Earnings Release: Upwork (UPWK) is another notable company reporting on Monday, and its performance will be closely watched by investors, potentially influencing its stock price and perceptions of the online labor market.
- Additional Earnings Reports: Other companies scheduled to report after Monday's close include ACGL, ACM, AMKR, BRX, CHGG, CINF, CRBG, DAC, GTM, ICHR, KRC, MEDP, MTW, NTB, PFG, PNNT, SSD, SVM, UDR, and VNO, which may trigger market volatility.
- Earnings Season Calendar: Investors can access the full earnings season calendar through Seeking Alpha to better navigate market dynamics and identify investment opportunities.
See More
GLOBALFOUNDRIES INC: MORGAN STANLEY INCREASES TARGET PRICE FROM $35.00 TO $43.00
Morgan Stanley Raises Target Price: Morgan Stanley has increased its target price for a specific stock to $43.00 from $35.00.
Market Implications: This adjustment reflects a positive outlook on the stock's performance and potential growth in the market.
See More
On Semiconductor Reports Mixed Q4 Earnings Amid Market Stabilization
- Earnings Performance: On Semiconductor reported a fourth-quarter EPS of 64 cents, surpassing the Wall Street estimate of 62 cents, indicating stability in profitability despite mixed results.
- Revenue Results: The quarterly revenue of $1.53 billion fell short of the consensus estimate of $1.536 billion and decreased from $1.72 billion year-over-year, highlighting a softening market demand.
- Market Outlook: CEO Hassane El-Khoury noted signs of stabilization in key markets, with expectations for first-quarter adjusted EPS ranging from 56 to 66 cents, slightly above the analyst estimate of 61 cents, suggesting cautious optimism.
- Stock Reaction: On Semiconductor shares fell 3.5% to $62.85 in pre-market trading, reflecting a cautious market sentiment despite the earnings beat, indicating investor concerns over revenue shortfalls.
See More
