ON Semiconductor (ON)
NASDAQ:ON
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ON Semiconductor
(NASDAQ:ON)
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Rating:64Neutral
Price Target:
$62.00
▼(-2.35% Downside)
Action:ReiteratedDate:02/10/26
The score is primarily supported by strong cash-flow resilience and a solid balance sheet, plus constructive technical momentum and a generally positive earnings-call outlook (FCF focus, buybacks, AI traction, and margin actions). The biggest constraint is valuation, with a very high P/E and no dividend yield provided, alongside the recent profitability downturn and near-term underutilization/non-core exit headwinds.
Positive Factors
Free Cash Flow Strength
Sustained, record-level free cash flow demonstrates durable internal funding for capex, R&D, and capital returns. A consistent FCF profile improves resilience through cyclical semiconductor demand swings and funds buybacks and debt flexibility without relying on external financing.
Negative Factors
Revenue & Profitability Downcycle
Consecutive annual revenue declines and compressed operating earnings indicate weakened demand and margin pressure across core segments. Persistently lower top-line and profit volatility can erode scale economics, impair investment capacity, and extend the recovery timeline for normalized margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, record-level free cash flow demonstrates durable internal funding for capex, R&D, and capital returns. A consistent FCF profile improves resilience through cyclical semiconductor demand swings and funds buybacks and debt flexibility without relying on external financing.
Read all positive factors
ON Semiconductor (ON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.13B
Dividend YieldN/A
Average Volume (3M)7.34M
Price to Earnings (P/E)183.9
Beta (1Y)1.66
Revenue Growth-16.13%
EPS Growth-81.06%
CountryUS
Employees26,400
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.64
Shares Outstanding394,020,540
10 Day Avg. Volume7,978,760
30 Day Avg. Volume7,339,944
Financial Highlights & Ratios
PEG Ratio-2.00
Price to Book (P/B)2.90
Price to Sales (P/S)3.71
P/FCF Ratio15.69
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue4.50
Enterprise Value/Gross Profit13.72
Enterprise Value/Ebitda30.38
Forecast
1Y Price Target
$67.88Price Target Upside6.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering28
EPS Forecast (FY)2.92
Revenue Forecast (FY)$6.28B
ON Semiconductor Business Overview & Revenue Model
Company Description
ON Semiconductor Corporation provides intelligent sensing and power solutions worldwide. Its intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers ...
How the Company Makes Money
onsemi primarily makes money by selling semiconductor devices and related solutions to original equipment manufacturers (OEMs), tier-one suppliers, and electronics manufacturers. Revenue is generated from shipment volumes and pricing of its produc...
ON Semiconductor Key Performance Indicators (KPIs)
Any
Revenue by End Market
Shows revenue distribution across various end markets, offering a view of the company's exposure to different industries and potential shifts in demand.
Shows revenue distribution across various end markets, offering a view of the company's exposure to different industries and potential shifts in demand.
Data provided by:
The Fly
The FlyON Semiconductor Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented materially positive strategic and financial progress: record free cash flow, disciplined capital return, product and technology momentum (Treo, GaN/VGaN, VCORE), and clear AI data center traction (> $250M FY). Management also detailed concrete margin-improvement actions (FabRite, capacity rationalization) and provided constructive Q1 guidance. Near-term challenges include meaningful underutilization charges (~700 bps), planned exits of non-core revenue (~$50M in Q1 and ~ $300M implied for the year), and YoY declines in several legacy segments. Taken together, the positives — strong cash generation, share repurchases, technology/design wins, and a path to margin expansion — outweigh the near-term operational and demand headwinds, though execution and market recovery timing remain important.Positive Updates
Full-Year Revenue and Margin Strength
2025 revenue of $6.0 billion with full-year non-GAAP gross margin of 38.4%, demonstrating resilience in a challenging demand environment.
Negative Updates
Underutilization and Gross Margin Headwind
Manufacturing utilization was 68% in Q4 and the quarter included ~700 basis points of underutilization charges to gross margin; utilization expected to be in the low-70% range in Q1 and mid-70s thereafter but management indicated low-90% utilization is needed to fully dissipate the underutilization headwind.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Margin Strength
2025 revenue of $6.0 billion with full-year non-GAAP gross margin of 38.4%, demonstrating resilience in a challenging demand environment.
Read all positive updates
Company Guidance
ON Semiconductor guided Q1 2026 revenue of $1.44–$1.54 billion (midpoint in line with seasonality; would be above seasonal excluding ~$50 million of non‑core exits), non‑GAAP gross margin of 37.5%–39.5% (includes ~$7M share‑based comp; FabRite actions to add ~30 bps at the midpoint), non‑GAAP operating expenses of $285–$300 million (includes ~$29M SBC), non‑GAAP other income net benefit of ~$7M, a non‑GAAP tax rate of ~15%, ~397 million diluted shares, and non‑GAAP EPS of $0.56–$0.66; capital expenditures are expected to be $35–$45 million, manufacturing utilization is forecast in the low‑70% range for Q1 (up from 68% in Q4, with mid‑70s expected thereafter), the company noted a roughly $45–$50 million reduction in 2026 depreciation from FabRite actions, and reiterated expectations for strong free cash flow in 2026 alongside its $6 billion share repurchase program.ON Semiconductor Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.00B | 7.08B | 8.25B | 8.33B | 6.74B |
| Gross Profit | 1.94B | 3.22B | 3.88B | 4.08B | 2.71B |
| EBITDA | 888.20M | 2.54B | 3.22B | 3.01B | 1.88B |
| Net Income | 121.00M | 1.57B | 2.18B | 1.90B | 1.01B |
Balance Sheet | |||||
| Total Assets | 12.52B | 14.09B | 13.22B | 11.98B | 9.63B |
| Cash, Cash Equivalents and Short-Term Investments | 2.55B | 2.99B | 2.48B | 2.92B | 1.35B |
| Total Debt | 3.47B | 3.37B | 3.36B | 3.23B | 3.10B |
| Total Liabilities | 4.83B | 5.28B | 5.41B | 5.77B | 5.02B |
| Stockholders Equity | 7.67B | 8.80B | 7.78B | 6.19B | 4.59B |
Cash Flow | |||||
| Free Cash Flow | 1.42B | 1.21B | 438.40M | 1.60B | 1.29B |
| Operating Cash Flow | 1.76B | 1.91B | 1.98B | 2.63B | 1.78B |
| Investing Cash Flow | -538.50M | -1.01B | -1.74B | -705.40M | -915.10M |
| Financing Cash Flow | -1.76B | -683.80M | -686.50M | -370.00M | -569.40M |
ON Semiconductor Technical Analysis
Positive
63.49
Price Trends
63.37
Positive
58.86
Positive
55.46
Positive
Market Momentum
-0.35
Negative
54.80
Neutral
80.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ON, the sentiment is Positive. The current price of 63.49 is above the 20-day moving average (MA) of 60.21, above the 50-day MA of 63.37, and above the 200-day MA of 55.46, indicating a bullish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 80.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ON.
ON Semiconductor Risk Analysis
ON Semiconductor disclosed 38 risk factors in its most recent earnings report. ON Semiconductor reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ON Semiconductor Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.33T | 37.75 | 104.37% | 0.02% | 65.47% | 66.12% | |
77 Outperform | $23.07B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
69 Neutral | $24.44B | 21.96 | 7.68% | ― | 0.25% | -106.22% | |
64 Neutral | $25.13B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $48.44B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $29.92B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
ON
ON Semiconductor
63.79
31.84
99.66%
ASX
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22.19
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NVDA
Nvidia
178.10
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STM
STMicroelectronics
35.68
18.09
102.83%
UMC
United Micro
9.31
3.47
59.31%
GFS
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43.93
13.56
44.65%
ON Semiconductor Corporate Events
Business Operations and StrategyExecutive/Board Changes
ON Semiconductor Announces Leadership Transition in Power Solutions
Neutral
Mar 11, 2026
ON Semiconductor said that on March 9, 2026, it agreed with Simon Keeton, Group President of its Power Solutions Group, that he will resign from all employment positions effective June 30, 2026. Keeton, who joined the company in July 2007 and has ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.