ON Semiconductor narrowly tops first-quarter earnings expectations and shares fall amid heightened investor expectations.
Onsemi forecast second-quarter revenue above Wall Street expectations on Monday, betting on resilient demand for its chips as the automotive industry recovers.
The company reported a loss of $33.4 million and posted higher revenue, boosted by chip demands from artificial-intelligence data-center builders.
ON Semiconductor is scheduled to report Q1 2026 results on May 4, with revenues of $1.435-$1.535B and EPS of 56-66 cents, amid AI data center and auto demand trends.
Shares of ON Semiconductor extended their recent rally, rising sharply as investors reacted to a bullish upgrade from Bank of America, even as questions remain about the timing of the call. The stock climbed 8% on Thursday, marking its ninth consecutive session of gains, making it a 14% gain this week so far.
ON Semiconductor's stock has risen significantly but may still offer value, particularly as the company is back on the growth path. Strong cash flows and a large buyback program help support the share price.
The Treo platform and upcoming GaN offerings position ON Semiconductor as a key beneficiary of the multi-year electrification and cloud supercycle, supporting its profitable growth prospects. The same has been embedded in the management's sequentially improving FQ4'25 performance, the promising FQ1'26 guidance, and the reiterated long-term growth targets. ON may very well outperform the consensus forward estimates, with FY2028 potentially bringing forth a richer EPS performance of $5.70 (3Y CAGR of +34.3%).
ON Semiconductor's NASDAQ: ON, which operates under the Onsemi brand, stock price action was mixed following its Q4 2025 earnings report and guidance update, but the initial sell-off proved to be a head fake. While results and guidance left some to be desired relative to consensus forecasts, they affirmed the company's return to growth, expectation for margin improvement, free cash flow growth, and capital return.
ON posts a Q4 EPS beat but sees revenues fall 11% Y/Y, with margins compressing as all three business segments decline.
ON Semiconductor (NASDAQ:ON) reported better-than-expected earnings for the fourth quarter, as revenue was in line with estimates but down from the same period a year earlier. The semiconductor firm posted Q4 revenue of $1.53 billion, in line with analyst expectations.
On Semiconductor's revenue fell 11% to $1.53 billion in the fourth quarter, as its two biggest business units continue to post sales declines.
ON Semiconductor is scheduled to report Q4 results on Feb. 9, with revenues expected to be in the range of $1.48-$1.58B, as AI data center gains meet margin pressure.