ON Semiconductor Corporation ( (ON) ) has released its Q3 earnings. Here is a breakdown of the information ON Semiconductor Corporation presented to its investors.
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ON Semiconductor Corporation, a key player in the semiconductor industry, focuses on automotive and industrial markets, offering innovative power and sensing technologies. The company reported its third quarter 2025 results, surpassing expectations with a revenue of $1,550.9 million and a GAAP gross margin of 37.9%. The results highlight the company’s strategic strength and market resilience.
Key financial metrics for the quarter include a GAAP operating margin of 17.0% and a non-GAAP operating margin of 19.2%, with both GAAP and non-GAAP diluted earnings per share at $0.63. The company generated $418.7 million in cash from operations and achieved a 22% year-over-year growth in free cash flow, amounting to $372.4 million, which represents 24% of the revenue. Notably, ON Semiconductor repurchased $925 million in shares year-to-date, aligning with its free cash flow.
The company’s President and CEO, Hassane El-Khoury, emphasized the positive growth in AI and the importance of energy efficiency in automotive, industrial, and AI platforms. ON Semiconductor is expanding its offerings to enhance system-level value, enabling customers to achieve more with less power. The company is seeing stabilization in its core markets and anticipates continued growth.
Looking ahead, ON Semiconductor projects fourth quarter 2025 revenue between $1,480 million and $1,580 million, with a gross margin ranging from 36.9% to 38.9%. The outlook reflects the company’s strategic initiatives and market positioning, as it continues to navigate the evolving semiconductor landscape.