ON Semiconductor Stock Falls After Earnings Beat. Have Auto Sales Hit Bottom?
Nov 03, 2025 08:34:00 -0500 by Nate Wolf | #Technology #Earnings Report
ON Semiconductor stock has slumped 21% this year as of Friday’s close. (Courtesy onsemi)
Key Points
- ON Semiconductor’s adjusted earnings for the third quarter of 63 cents share exceed estimates.
- Revenue reaches $1.55 billion, surpassing analysts’ estimates of $1.52 billion.
- The company’s CEO notes stabilization in core markets and positive growth in AI.
Shares of ON Semiconductor ticked down Monday even after the chip maker reported better-than-expected quarterly earnings.
The company posted adjusted earnings of 63 cents a share for the third quarter, above Wall Street’s call for 59 cents. Revenue totaled $1.55 billion, down from $1.76 billion a year ago but ahead of analysts’ consensus estimates of $1.52 billion.
The stock slipped 0.6% on Monday after gaining in premarket trading. Shares have tumbled 21% this year as of Friday’s close.
“Our third quarter results exceeded expectations,” said CEO Hassane El-Khoury. “We’re seeing continued signs of stabilization across our core markets, as well as positive growth in AI.”
ON Semi is reliant on sales to auto makers, which make up around half its total revenue. Demand for cars has been sluggish for multiple years, but investors will hope that automotive revenue already has hit bottom.
Revenue at ON Semi from the auto end market totaled $787.3 million in the third quarter, down 17% from the prior year but above Wall Street’s call for $749 million. That figure marked an uptick from the second quarter, when auto revenue dropped 19% to a three-year low of $733.2 million.
“We said the bottom was going to be in Q2,” Khoury said of the auto end market on a conference call. “That has been the case, and we’re going to grow from there.”
The company anticipates revenue of $1.48 billion to $1.58 billion for the fourth quarter and adjusted earnings of 57 cents to 67 cents a share. Both forecasts were in line with analysts’ expectations but represent significant drops from last year.
The company was a Barron’s stock pick in 2024, but the recommendation was removed last month.
Write to Nate Wolf at nate.wolf@barrons.com