ON Semiconductor Q4 Earnings and 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ON?
Source: seekingalpha
- Earnings Highlights: ON Semiconductor reported a Q4 non-GAAP EPS of $0.64, beating expectations by $0.02, indicating stable profitability despite an 11.6% year-over-year revenue decline to $1.53 billion, which missed forecasts, reflecting weak market demand.
- Future Outlook: The company projects Q1 2026 revenue between $1.435 billion and $1.535 billion, with gross margins expected to range from 37.4% to 39.4%, demonstrating efforts to control costs and enhance profitability amid market challenges.
- Operating Expense Management: Projected operating expenses for Q1 are between $407 million and $422 million, indicating ongoing efforts to optimize spending aimed at improving overall profitability and navigating market fluctuations.
- Earnings Per Share Forecast: ON Semiconductor anticipates Q1 2026 diluted EPS between $0.28 and $0.38, showcasing resilience in profitability despite external economic pressures, which may attract investor interest.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ON is 61.25 USD with a low forecast of 50.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 65.200
Low
50.00
Averages
61.25
High
80.00
Current: 65.200
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.
ON Semiconductor Set to Release Q4 Earnings on February 9th
- Earnings Announcement: ON Semiconductor is set to announce its Q4 2023 earnings on February 9th after market close, with consensus EPS estimate at $0.62, reflecting a 34.7% year-over-year decline, and revenue estimate at $1.54 billion, down 11% year-over-year.
- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
- Increased Market Attention: With stronger demand anticipated for analog chips, BNP Paribas has upgraded ON Semiconductor and its peers, reflecting growing confidence in a cyclical recovery within the semiconductor industry.
See More
ON Semiconductor Reports Q4 2025 Earnings with AI Growth Insights
- 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.
See More
ON Semiconductor Misses Revenue Estimates, Shares Drop
- ON Semiconductor Earnings Miss: ON Semiconductor reported fourth-quarter revenue of $1.53 billion, falling short of the LSEG consensus estimate of $1.54 billion, resulting in a nearly 6% drop in shares; however, adjusted earnings of 64 cents per share exceeded the forecast of 62 cents, indicating some operational strength despite revenue concerns.
- Upwork Client Decline: Upwork revealed that active clients at the end of 2025 totaled 785,000, down from 832,000 the previous year, leading to a 22% plunge in shares; additionally, the current quarter revenue guidance of $192 million to $197 million fell short of the $201 million consensus estimate, highlighting weakening market demand.
- Chegg Performance Decline: Chegg's fourth-quarter adjusted EBITDA was $12.9 million, a significant 65% drop year-over-year, with revenue at $72.7 million, down 49%, causing a 5% decline in shares; this stark performance decline underscores the challenges facing the online education sector.
- Aecom Earnings Beat Expectations: Aecom posted first-quarter adjusted earnings of $1.29 per share on revenue of $1.85 billion, surpassing analyst expectations of $1.17 per share and $1.76 billion in revenue, resulting in a roughly 3% increase in shares, reflecting the company's competitive strength and a rebound in market demand.
See More
Onsemi Misses Q4 Revenue Estimates Amid Inventory Glut
- Revenue Shortfall: Onsemi reported Q4 revenue of $1.53 billion, an 11% decline year-over-year, missing Wall Street's expectations of $1.54 billion, indicating significant challenges due to an ongoing inventory glut.
- Segment Declines: The power solutions group, Onsemi's largest revenue contributor, generated $724.2 million, down 11% year-over-year, while the intelligent sensing group fell 17% to $249.6 million, reflecting weak market demand.
- Increased Competition: Onsemi's silicon carbide chip business continues to face challenges amid heightened competition from Chinese firms, and slower-than-expected electric vehicle sales may impact future market share.
- Cautious Outlook: The company expects Q1 revenue between $1.44 billion and $1.54 billion, with the midpoint falling below analysts' estimate of $1.51 billion, indicating a cautious outlook for future market conditions.
See More
ON Semiconductor Q4 Earnings and 2026 Outlook
- Earnings Highlights: ON Semiconductor reported a Q4 non-GAAP EPS of $0.64, beating expectations by $0.02, indicating stable profitability despite an 11.6% year-over-year revenue decline to $1.53 billion, which missed forecasts, reflecting weak market demand.
- Future Outlook: The company projects Q1 2026 revenue between $1.435 billion and $1.535 billion, with gross margins expected to range from 37.4% to 39.4%, demonstrating efforts to control costs and enhance profitability amid market challenges.
- Operating Expense Management: Projected operating expenses for Q1 are between $407 million and $422 million, indicating ongoing efforts to optimize spending aimed at improving overall profitability and navigating market fluctuations.
- Earnings Per Share Forecast: ON Semiconductor anticipates Q1 2026 diluted EPS between $0.28 and $0.38, showcasing resilience in profitability despite external economic pressures, which may attract investor interest.
See More
ON Semiconductor Reports Mixed Q4 Earnings Amid Recovery Hopes
- Earnings Highlights: ON Semiconductor reported a non-GAAP EPS of $0.64, beating expectations by $0.02, indicating resilience in profitability; however, its revenue of $1.53 billion fell short by $10 million, reflecting uncertainty in market demand.
- Cyclical Recovery Outlook: Analysts widely believe that ON Semiconductor is on the brink of a cyclical recovery, with expectations of stronger growth in the coming quarters as global semiconductor demand rebounds, potentially enhancing its market valuation.
- Investor Interest: Despite missing revenue expectations, ON Semiconductor's deep-value investment thesis is gaining recognition, with increasing investor confidence in its future growth potential, which may attract more long-term investors.
- Market Environment Challenges: The company faces challenges including global supply chain issues and demand fluctuations, which could impact short-term performance; however, in the long run, ON's market position is expected to strengthen as the industry recovers.
See More
ON Semiconductor Set to Release Q4 Earnings on February 9th
- Earnings Announcement: ON Semiconductor is set to announce its Q4 2023 earnings on February 9th after market close, with consensus EPS estimate at $0.62, reflecting a 34.7% year-over-year decline, and revenue estimate at $1.54 billion, down 11% year-over-year.
- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
- Increased Market Attention: With stronger demand anticipated for analog chips, BNP Paribas has upgraded ON Semiconductor and its peers, reflecting growing confidence in a cyclical recovery within the semiconductor industry.
See More
ON Semiconductor Reports Q4 2025 Earnings with AI Growth Insights
- 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.
See More
ON Semiconductor Misses Revenue Estimates, Shares Drop
- ON Semiconductor Earnings Miss: ON Semiconductor reported fourth-quarter revenue of $1.53 billion, falling short of the LSEG consensus estimate of $1.54 billion, resulting in a nearly 6% drop in shares; however, adjusted earnings of 64 cents per share exceeded the forecast of 62 cents, indicating some operational strength despite revenue concerns.
- Upwork Client Decline: Upwork revealed that active clients at the end of 2025 totaled 785,000, down from 832,000 the previous year, leading to a 22% plunge in shares; additionally, the current quarter revenue guidance of $192 million to $197 million fell short of the $201 million consensus estimate, highlighting weakening market demand.
- Chegg Performance Decline: Chegg's fourth-quarter adjusted EBITDA was $12.9 million, a significant 65% drop year-over-year, with revenue at $72.7 million, down 49%, causing a 5% decline in shares; this stark performance decline underscores the challenges facing the online education sector.
- Aecom Earnings Beat Expectations: Aecom posted first-quarter adjusted earnings of $1.29 per share on revenue of $1.85 billion, surpassing analyst expectations of $1.17 per share and $1.76 billion in revenue, resulting in a roughly 3% increase in shares, reflecting the company's competitive strength and a rebound in market demand.
See More
Onsemi Misses Q4 Revenue Estimates Amid Inventory Glut
- Revenue Shortfall: Onsemi reported Q4 revenue of $1.53 billion, an 11% decline year-over-year, missing Wall Street's expectations of $1.54 billion, indicating significant challenges due to an ongoing inventory glut.
- Segment Declines: The power solutions group, Onsemi's largest revenue contributor, generated $724.2 million, down 11% year-over-year, while the intelligent sensing group fell 17% to $249.6 million, reflecting weak market demand.
- Increased Competition: Onsemi's silicon carbide chip business continues to face challenges amid heightened competition from Chinese firms, and slower-than-expected electric vehicle sales may impact future market share.
- Cautious Outlook: The company expects Q1 revenue between $1.44 billion and $1.54 billion, with the midpoint falling below analysts' estimate of $1.51 billion, indicating a cautious outlook for future market conditions.
See More
ON Semiconductor Q4 Earnings and 2026 Outlook
- Earnings Highlights: ON Semiconductor reported a Q4 non-GAAP EPS of $0.64, beating expectations by $0.02, indicating stable profitability despite an 11.6% year-over-year revenue decline to $1.53 billion, which missed forecasts, reflecting weak market demand.
- Future Outlook: The company projects Q1 2026 revenue between $1.435 billion and $1.535 billion, with gross margins expected to range from 37.4% to 39.4%, demonstrating efforts to control costs and enhance profitability amid market challenges.
- Operating Expense Management: Projected operating expenses for Q1 are between $407 million and $422 million, indicating ongoing efforts to optimize spending aimed at improving overall profitability and navigating market fluctuations.
- Earnings Per Share Forecast: ON Semiconductor anticipates Q1 2026 diluted EPS between $0.28 and $0.38, showcasing resilience in profitability despite external economic pressures, which may attract investor interest.
See More
ON Semiconductor Reports Mixed Q4 Earnings Amid Recovery Hopes
- Earnings Highlights: ON Semiconductor reported a non-GAAP EPS of $0.64, beating expectations by $0.02, indicating resilience in profitability; however, its revenue of $1.53 billion fell short by $10 million, reflecting uncertainty in market demand.
- Cyclical Recovery Outlook: Analysts widely believe that ON Semiconductor is on the brink of a cyclical recovery, with expectations of stronger growth in the coming quarters as global semiconductor demand rebounds, potentially enhancing its market valuation.
- Investor Interest: Despite missing revenue expectations, ON Semiconductor's deep-value investment thesis is gaining recognition, with increasing investor confidence in its future growth potential, which may attract more long-term investors.
- Market Environment Challenges: The company faces challenges including global supply chain issues and demand fluctuations, which could impact short-term performance; however, in the long run, ON's market position is expected to strengthen as the industry recovers.
See More
