ON Semiconductor Corp NASDAQ:ON Price, Chart, News & Insight

NASDAQ:ON

onsemi (ON) Stock Falls After TD Cowen Lowers Price Target

onsemi (NASDAQ: ON) shares dropped 5.8% on Monday after TD Cowen lowered its price target on the semiconductor manufacturer to $95 from $110 while maintaining a "Buy" rating.

The reduced price target reflects a more cautious near-term outlook as onsemi continues to face softer demand across its automotive and industrial end markets. While the firm remains constructive on the company's long-term prospects, the lower target suggests that a recovery in key markets may take longer than previously expected.

onsemi has been navigating a prolonged inventory correction, particularly in the automotive and industrial semiconductor segments, where customers have continued to reduce inventories amid slowing demand. Although the company remains well positioned in high-growth markets such as electric vehicles, advanced driver assistance systems (ADAS), and industrial power management, near-term revenue growth has been pressured by weaker customer orders.

Despite lowering its valuation target, TD Cowen maintained its Buy rating, indicating continued confidence in onsemi's competitive position and long-term earnings potential once industry conditions improve.

Monday's selloff suggests investors focused on the more conservative valuation outlook, adding to concerns about the pace of recovery in the analog and automotive semiconductor markets. Investors will now look ahead to onsemi's upcoming quarterly earnings for updates on customer inventories, demand trends, and management's outlook for the second half of the year.

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Global Finance News 07-14-26

onsemi Drops 4% in Pre-Market as Recovery Remains a Work in Progress

May 5, 2026

onsemi (Nasdaq: ON) is trading about 4% lower in Tuesday's pre-market session after the semiconductor maker reported its first quarter 2026 results following Monday's close. While the company beat its own guidance and painted an encouraging picture of recovery, a GAAP net loss and sequential revenue decline appear to be weighing on investor sentiment.

Q1 by the Numbers

Revenue came in at $1.513 billion, exceeding the midpoint of the company's guidance and up 5% compared to the first quarter of 2025. However, revenue slipped 1% sequentially from Q4 2025's $1.530 billion, a detail that may be giving markets pause.

Gross margin improved meaningfully year-over-year, reaching 38.5% on both a GAAP and non-GAAP basis, compared to just 20.3% on a GAAP basis in Q1 2025 — a sign that the operational restructuring underway at onsemi is having a real effect on the cost structure. Non-GAAP operating margin came in at 19.1%, up from 18.3% a year ago.

On a GAAP basis, however, the company reported a net loss of $33.4 million, or a loss of $0.08 per diluted share, compared to a loss of $486.1 million in Q1 2025 and net income of $181.8 million in Q4 2025. The GAAP operating margin was negative 3.5%, dragged down by special items. Non-GAAP diluted earnings per share came in at $0.64, up from $0.55 in Q1 2025 and flat with Q4 2025.

Despite the net loss, onsemi repurchased $346 million worth of shares in the quarter, representing approximately 160% of free cash flow — an aggressive capital return posture that signals management's confidence in the longer-term trajectory.

Segment Performance

The Power Solutions Group was the standout performer, with revenue of $736.6 million, up 14% year-over-year and 2% sequentially. The Advanced Manufacturing Group brought in $540.4 million, down 5% year-over-year and 3% sequentially, while the Intelligent Sensing Group contributed $236.3 million, roughly flat year-over-year but down 5% from Q4 2025.

AI Data Center and Automotive as Growth Drivers

CEO Hassane El-Khoury pointed to the AI data center business as a particular bright spot, noting it grew more than 30% sequentially and more than doubled year-over-year, driven by broader adoption across the power tree with multiple chip vendors and leading hyperscalers. On the automotive side, onsemi highlighted expanded collaborations with Geely and NIO around its EliteSiC technology for 900V EV architectures, and reported initial production shipments of Treo-based Ethernet solutions supporting next-generation vehicle architecture at a leading North American OEM.

CFO Thad Trent noted that operating income grew 10% year-over-year, outpacing revenue growth by a factor of two — a metric the company is clearly proud of and which points to improving operating leverage as volumes recover.

Q2 Outlook

For the second quarter of 2026, onsemi guided revenue of $1.535 to $1.635 billion, a meaningful step up from Q1 at the midpoint. Non-GAAP diluted EPS is expected in the range of $0.65 to $0.77, implying continued earnings momentum. Non-GAAP gross margin is guided at 38.0% to 40.0%.

Why the Stock Is Down

The 4% pre-market decline likely reflects a combination of factors: the GAAP net loss, the slight sequential revenue dip from Q4, and perhaps expectations that had been set higher heading into the print. Semiconductor stocks also remain sensitive to broader macro and tariff concerns, which can amplify post-earnings moves even when underlying results are improving. The recovery narrative at onsemi is intact, but the market appears to want to see it move faster.

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The Investor 05-05-26

ON Semiconductor said it will record an additional $200–300 million in non-cash impairment and accelerated depreciation charges tied to long-lived manufacturing assets. The move follows a broader restructuring effort to align its production footprint with long-term strategy and technology needs.

The company expects the charges — most incurred through mid-2026 — to lower annual depreciation expense by $10–15 million next year and does not anticipate significant future cash outflows. Management noted that final impairment amounts and timing may change depending on asset sales and market conditions.

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WS Investor 11-18-25

onsemi beats expectations with $1.55 billion Q3 revenue and strong cash flow growth

onsemi (Nasdaq: ON) reported third-quarter 2025 revenue of $1.55 billion, surpassing expectations, with a GAAP gross margin of 37.9% and non-GAAP operating margin of 19.2%. Earnings per share came in at $0.63, while free cash flow rose 22% year-over-year to $372 million, representing 24% of revenue. The company also repurchased $925 million in shares year-to-date—approximately all of its free cash flow.

CEO Hassane El-Khoury highlighted stabilization across core markets and growing AI demand, noting onsemi’s role in enabling energy-efficient systems for automotive, industrial, and AI platforms. For Q4 2025, the company expects revenue between $1.48 and $1.58 billion and non-GAAP EPS in the range of $0.57–$0.67.

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Global Finance News 11-03-25

onsemi Q2 2025 Earnings: Revenue Declines 15% YoY, $0.53 EPS Beats Estimates

Scottsdale, AZ – August 4, 2025 – onsemi (Nasdaq: ON) reported second-quarter 2025 revenue of $1.47 billion, down 15% year-over-year. Non-GAAP diluted EPS came in at $0.53, while GAAP EPS was $0.41. The company delivered a gross margin of 37.6% and returned over 100% of its free cash flow year-to-date via share repurchases.
Segment revenues declined across all units, with Power Solutions Group (PSG) down 16%, Analog & Mixed-Signal Group (AMG) down 14%, and Intelligent Sensing Group (ISG) down 15%.

Free cash flow stood at $106.1 million, and CEO Hassane El-Khoury emphasized signs of stabilization in end markets and reaffirmed the company’s focus on long-term growth.

For Q3 2025, onsemi expects revenue between $1.465–$1.565 billion and non-GAAP EPS between $0.54–$0.64.

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European Investor 08-05-25

Onsemi posts $1.45B in revenue, swings to GAAP net loss but delivers $455M in free cash flow
Key Financial Results (Q1 2025):
• Revenue: $1.45 billion (down 22% year-over-year, down 16% quarter-over-quarter)
• GAAP gross margin: 20.3% (was 45.8% in Q1 2024)
• Non-GAAP gross margin: 40.0%
• GAAP operating margin: (39.7)%
• Non-GAAP operating margin: 18.3%
• GAAP net loss: $(486.1) million or $(1.15) per share
• Non-GAAP net income: $231.6 million or $0.55 per share
Segment Revenue (Year-over-Year):
• Power Solutions Group (PSG): $645 million (down 26%)
• Analog & Mixed Signal Group (AMG): $566 million (down 19%)
• Intelligent Sensing Group (ISG): $234 million (down 20%)
Cash and Balance Sheet Highlights:
• Free cash flow: $454.7 million (up 72% year-over-year)
• Cash and equivalents: $2.76 billion
• Capital expenditures: $147.6 million
• Share repurchases: $300.1 million (66% of free cash flow returned to shareholders)
Notable GAAP Charges:
• $283 million in restructuring-related inventory charges
• $539 million in asset impairments and restructuring
• $120 million income tax benefit adjustment
Q2 2025 Guidance:
• Revenue: $1.40 to $1.50 billion
• Non-GAAP gross margin: 36.5% to 38.5%
• Non-GAAP EPS: $0.48 to $0.58
• GAAP EPS: $0.45 to $0.55
• Non-GAAP operating expenses: $285 to $300 million
CEO Commentary:
CEO Hassane El-Khoury stated the company is maintaining discipline through the downturn by managing costs and manufacturing capacity. He highlighted ongoing design win momentum and a commitment to shareholder returns and strategic investments.

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Global Finance News 05-06-25

ON Semiconductor Announces $600M-$700M Asset Impairment Amid Restructuring
Scottsdale, AZ – March 17, 2025 – ON Semiconductor Corporation (NASDAQ: ON) has announced plans to recognize pre-tax non-cash impairment charges of approximately $600 million to $700 million as part of its previously disclosed restructuring and cost-reduction initiatives.

Key Details:
Impairment Scope: Charges relate to long-lived assets and manufacturing equipment at certain facilities under held-for-sale accounting guidance.
Strategic Purpose: The move is part of onsemi's efforts to realign its manufacturing technologies and capacity with long-term operational needs.
Financial Impact:
The charges are expected to reduce depreciation expenses by $30 million to $35 million in 2025.
The majority of these charges will be incurred in the first half of 2025.
The company does not anticipate significant future cash expenditures related to these impairments.
Forward-Looking Statements:
ON Semiconductor cautioned that actual impairment amounts, asset dispositions, and financial impacts may differ due to valuation uncertainties.

This announcement aligns with onsemi’s broader transformation strategy, aimed at optimizing its manufacturing footprint and focusing on key growth areas such as automotive and industrial applications.

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ME NEWS 03-19-25

ON Semiconductor Corporation (onsemi) (NASDAQ: ON) has confirmed that it has submitted a proposal to acquire Allegro MicroSystems, Inc. for $35.10 per share in cash. The acquisition would enhance onsemi’s position in the semiconductor industry by expanding its market share and capabilities.

The deal, if accepted, would be subject to regulatory approvals and other closing conditions. Onsemi has acknowledged potential risks, including integration challenges, unforeseen costs, regulatory scrutiny, and market volatility. Despite these risks, the company expects the acquisition to drive revenue synergies and operational efficiencies.

Onsemi has stated that it may file necessary regulatory documents with the SEC, including a potential tender offer or prospectus. Investors and shareholders are advised to monitor SEC filings for updates.

The company emphasizes that this announcement does not constitute a final offer or solicitation and urges stakeholders to review official filings when available.

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WS Investor 03-06-25

ON Semiconductor Corporation has announced a company-wide restructuring plan to align its costs with current business trends while maintaining progress toward long-term financial goals. The plan includes reducing the global workforce by approximately 2,400 employees, expected to be completed in 2025, subject to local laws and regulations. The company anticipates incurring employment-related charges between $50 million and $60 million, covering severance, benefits, payroll taxes, and other expenses, with most charges recorded in 2025. The estimated annual savings from these reductions range between $105 million and $115 million.

The company notes that these estimates are subject to change based on various factors and may incur additional costs not currently anticipated. The announcement includes forward-looking statements about the restructuring’s execution and financial impact, which involve risks and uncertainties. Investors are advised to consider these risks before making any investment decisions.

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European Investor 02-26-25

06-27-26The Investor

06-09-26Global Finance News

05-26-26WS Investor

02-10-26WS News

11-03-25Global Finance News

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