ON Semiconductor Q3 2025 Results: Resilience Amid Revenue Decline
ON Semiconductor Corporation (ON) reported a mixed third-quarter performance, with revenue dropping 12% year-over-year to $1.55 billion. Yet, the stock rose 1.04% to $50.60, buoyed by strong free cash FLOW and aggressive share repurchases.
Gross margins improved slightly to 37.9% GAAP (38.0% non-GAAP), while operating margins expanded to 17.0% GAAP from 13.2% in Q2. Net income fell 36.6%, but cost discipline and capital returns signaled confidence.
Q4 guidance projects revenue between $1.48B-$1.58B and EPS of $0.56-$0.66. The company's focus on long-term growth strategies appears to outweigh near-term cyclical headwinds.