Results Highlights:
Fourth quarter revenue of $1,530 million
Fourth quarter GAAP gross margin and non-GAAP gross margin of 36.0% and 38.2%, respectively
Fourth quarter GAAP operating margin and non-GAAP operating margin of 13.1% and 19.8%, respectively
Fourth quarter GAAP diluted earnings per share and non-GAAP diluted earnings per share of $0.45 and $0.64, respectively
2025 cash from operations of $1.8 billion and free cash flow of $1.4 billion, achieving record high free cash flow margin of 24%
"We remained disciplined in our execution and met expectations in the fourth quarter as we saw increasing signs of stabilization in our key markets," said Hassane El-Khoury, President and CEO, onsemi. "We continue to invest in intelligent power and sensing technologies that position us to win in the most critical technology transitions shaping our industry. Our strategy is clear: lead in automotive, industrial, and AI data center power with innovation that delivers higher-value solutions for our customers and long-term returns for our shareholders."
"In 2025, we generated $1.4 billion of free cash flow and returned 100% of our annual free cash flow to shareholders through share repurchases. With our major investment cycle behind us and new technologies ramping, we continue to strengthen our financial foundation. As we continue to drive meaningful improvements to our cost structure across the company, we are creating greater leverage in our operating model going forward," said Thad Trent, EVP and CFO of onsemi. "Our focus remains on operational excellence and margin expansion, and we are well-positioned to benefit as market conditions improve."
Q4 2025 Business Highlights:
Announced the authorization of a new share repurchase program of up to $6 billion over the next three years.
Introduced vertical gallium nitride (vGaN) power semiconductors, setting a new benchmark for power density, efficiency and ruggedness for these applications.
Signed a memorandum of understanding (MoU) with Innoscience to explore expanding production of gallium nitride (GaN) power devices using Innoscience's proven 200mm GaN-on-silicon process.
Established a new collaboration agreement with GlobalFoundries (GF) to develop and manufacture next-generation gallium nitride (GaN) power devices, beginning with 650V.
Selected financial results for the quarter are shown below with comparable periods:
GAAP
Non-GAAP
Three Months Ended
Three Months Ended
(Revenue and Net Income in millions)
Q4 2025
Q3 2025
Q4 2024
Q4 2025
Q3 2025
Q4 2024
Revenue
$
1,530.1
$
1,550.9
$
1,722.5
$
1,530.1
$
1,550.9
$
1,722.5
Gross Margin
36.0
%
37.9
%
45.2
%
38.2
%
38.0
%
45.3
%
Operating Margin
13.1
%
17.0
%
23.7
%
19.8
%
19.2
%
26.7
%
Net Income attributable to ON Semiconductor Corporation
$
181.8
$
255.0
$
379.9
$
257.2
$
256.3
$
404.2
Diluted Earnings Per Share
$
0.45
$
0.63
$
0.88
$
0.64
$
0.63
$
0.95
Selected financial results for 2025 and 2024 are shown below:
GAAP
Non-GAAP
Year Ended
Year Ended
(Revenue and Net Income in millions)
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Revenue
$
5,995.4
$
7,082.3
$
5,995.4
$
7,082.3
Gross Margin
33.1
%
45.4
%
38.4
%
45.5
%
Operating Margin
1.4
%
25.0
%
18.6
%
27.9
%
Net Income attributable to ON Semiconductor Corporation
$
121.0
$
1,572.8
$
966.4
$
1,704.6
Diluted Earnings Per Share
$
0.29
$
3.63
$
2.35
$
3.98
Revenue Summary($ in millions)(Unaudited)
Three Months Ended
Business Segment
Q4 2025
Q3 2025
Q4 2024
Sequential Change
Year-over-Year Change
PSG
$
724.2
$
737.6
$
809.4
(2
)%
(11
)%
AMG
556.3
583.3
610.6
(5
)%
(9
)%
ISG
249.6
230.0
302.5
9
%
(17
)%
Total
$
1,530.1
$
1,550.9
$
1,722.5
(1
)%
(11
)%
Year Ended
Business Segment
December 31, 2025
December 31, 2024
Year-over-Year Change
PSG
$
2,805.1
$
3,348.2
(16
)%
AMG
2,261.9
2,609.1
(13
)%
ISG
928.4
1,125.0
(17
)%
Total
$
5,995.4
$
7,082.3
(15
)%
FIRST QUARTER 2026 OUTLOOK
The following table outlines onsemi's projected first quarter of 2026 GAAP and non-GAAP outlook.
Total onsemiGAAP
SpecialItems **
Total onsemiNon-GAAP***
Revenue
$1,435 to $1,535 million
—
$1,435 to $1,535 million
Gross Margin
37.4% to 39.4%
0.1%
37.5% to 39.5%
Operating Expenses
$407 to $422 million
$122 million
$285 to $300 million
Other Income and Expense (including interest expense), net
($7 million)
—
($7 million)
Diluted Earnings Per Share
$0.28 to $0.38
$0.28
$0.56 to $0.66
Diluted Shares Outstanding *
398 million
1 million
397 million
*
Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the Company's convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the Company's hedge transactions entered concurrently with the 0% Notes and the 0.50% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes and 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% Notes, the dilutive impact of the warrants issued concurrently with such notes are included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher.
**
Special items may include: amortization of intangibles; expensing of appraised inventory fair market value step-up; purchased in-process research and development expenses; restructuring, asset impairments and other, net; goodwill and intangible asset impairment charges; gains and losses on debt prepayment; non-cash interest expense; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.
***
We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.
TELECONFERENCE
onsemi will host a conference call for the financial community at 5 p.m. Eastern Time (EST) on February 9, 2026 to discuss this announcement and onsemi's results for the fourth quarter of 2025 and fiscal year 2025. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.
About onsemi
onsemi (NASDAQ:ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world's most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is included in the S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
Krystal Heaton
Parag Agarwal
Director, Head of Public Relations
Vice President - Investor Relations & Corporate Development
onsemi
onsemi
(480) 242-6943
(602) 244-3437
[email protected]
[email protected]
This document includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the first fiscal quarter of 2026. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," "anticipates," "should" or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties, and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A "Risk Factors" in our 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 9, 2026 (our "2025 Form 10-K"), and from time-to-time in our other SEC reports (including in our 2025 Form 10-K). Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks, and uncertainties described in this document, our 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share and percentage data)
Quarter Ended
Year Ended
December 31, 2025
October 3, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Revenue
$
1,530.1
$
1,550.9
$
1,722.5
$
5,995.4
$
7,082.3
Cost of revenue
979.1
963.7
943.4
4,011.5
3,866.2
Gross profit
551.0
587.2
779.1
1,983.9
3,216.1
Gross margin
36.0
%
37.9
%
45.2
%
33.1
%
45.4
%
Operating expenses:
Research and development
133.8
141.9
155.2
583.6
612.7
Selling and marketing
61.5
62.8
70.4
255.9
273.5
General and administrative
86.0
87.3
100.5
348.9
376.3
Amortization of intangible assets
10.8
11.2
13.5
44.4
52.0
Restructuring, asset impairments and other charges, net
58.8
19.6
30.9
666.9
133.9
Total operating expenses
350.9
322.8
370.5
1,899.7
1,448.4
Operating income
200.1
264.4
408.6
84.2
1,767.7
Other income (expense), net:
Interest expense
(17.3
)
(17.7
)
(15.3
)
(70.9
)
(62.3
)
Interest income
20.6
22.7
27.8
95.1
111.4
Other income
13.7
3.6
21.4
22.9
20.6
Other income (expense), net
17.0
8.6
33.9
47.1
69.7
Income before income taxes
217.1
273.0
442.5
131.3
1,837.4
Income tax provision
(35.3
)
(17.7
)
(62.7
)
(7.7
)
(262.8
)
Net income
181.8
255.3
379.8
123.6
1,574.6
Less: Net (income) loss attributable to non-controlling interest
—
(0.3
)
0.1
(2.6
)
(1.8
)
Net income attributable to ON Semiconductor Corporation
$
181.8
$
255.0
$
379.9
$
121.0
$
1,572.8
Net income for diluted earnings per share of common stock
$
181.8
$
255.0
$
379.9
$
121.0
$
1,572.8
Net income per share of common stock attributable to ON Semiconductor Corporation:
Basic
$
0.45
$
0.63
$
0.89
$
0.29
$
3.68
Diluted
$
0.45
$
0.63
$
0.88
$
0.29
$
3.63
Weighted average common shares outstanding:
Basic
400.8
406.9
425.4
411.0
427.4
Diluted
402.3
408.0
429.6
411.8
432.7
ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED BALANCE SHEETS(in millions)
December 31, 2025
October 3, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
2,147.6
$
2,472.5
$
2,691.3
Short-term investments
400.0
400.0
300.0
Receivables, net
908.0
943.4
1,160.1
Inventories
1,989.6
2,047.9
2,242.0
Assets held-for-sale
25.0
70.5
5.3
Other current assets
352.9
396.7
353.3
Total current assets
5,823.1
6,331.0
6,752.0
Property, plant and equipment, net
3,369.0
3,550.6
4,361.4
Goodwill
1,679.9
1,641.6
1,587.9
Intangible assets, net
343.9
289.5
257.9
Deferred tax assets
929.1
837.5
729.9
ROU financing lease assets
23.1
38.7
40.5
Other assets
356.0
321.3
360.2
Total assets
$
12,524.1
