ON Semiconductor Q1 Earnings Beat Estimates, CEO Optimistic On Design Wins Despite Margin Decline

ON Semiconductor Corp (NASDAQ: ON) reported its fiscal first-quarter 2025 results on Monday. The stock gained after the company reported a quarterly revenue decline of 22.4% year-on-year to $1.45 billion, topping the analyst consensus estimate of $1.40 billion.

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The adjusted EPS of $0.55 beat the analyst consensus estimate of $0.51.

Revenue from Power Solutions Group (PSG) declined 26% Y/Y to $645.1 million, Analog and Mixed-Signal Group (AMG) decreased 19% Y/Y to $566.4 million, and Intelligent Sensing Group (ISG) fell 20% Y/Y to $234.2 million.

The adjusted gross margin declined by 590 bps to 40.0%, while the adjusted operating margin decreased by 1,070 bps to 18.3%, implying semiconductor industry pricing pressures.

ON Semiconductor generated $454.7 million in free cash flow and held $

3.01 billion in cash and equivalents as of March 31, 2025.

CEO Hassane El-Khoury said the company continues to see strong design win momentum, driven by its products’ industry-leading performance. It has secured key wins with major global customers across all end markets.

Outlook: ON Semiconductor expects second-quarter adjusted revenue of $1.40 billion—$1.45 billion, compared to the analyst consensus estimate of $1.42 billion.

The company expects quarterly adjusted EPS of $0.48–$0.58 (above the analyst consensus estimate of $0.45) and an adjusted gross margin of 36.5%-38.5%.

Price Action: ON stock is up 2.91% at $43.12 premarket at the last check on Monday.

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