ON Semiconductor Q3 2025 Earnings: Sales Climb as Auto and Industrial Markets Stabilize
Onsemi's Q3 2025 revenue rose sequentially on auto, industrial and AI-related demand, with management citing early signs of market stabilization.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.63 |
| Revenue | $1.55B |
Figures as reported by the company to the SEC for the quarter ended October 3, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue of $1.55 billion was up about 6% from the prior quarter (Q2 2025), with management pointing to project ramps and new design wins rather than a broad restocking cycle among customers.
- Automotive, the company’s largest segment, brought in $787 million, up 7% from the prior quarter, with growth in the Americas, China, and Japan.
- Industrial revenue rose 5% sequentially to $426 million, helped by strength in aerospace, defense, and security equipment, though a slowdown in solar-related demand in China was a partial offset.
- CEO Hassane El-Khoury said the company is “already seeing stabilization in automotive and industrial, while continuing to grow in AI,” pointing to data-center-related demand as an additional growth driver alongside the core auto and industrial markets.
- Over the trailing twelve months, profitability improved even though total revenue was down about 3% versus a year earlier — per-share earnings for that period grew nearly 45% year over year, suggesting cost discipline and mix improvements added more to the bottom line than the revenue decline took away.
- For every dollar of sales over the trailing year, the company kept about 38 cents after production costs (gross margin) and roughly 10 cents after all operating expenses and taxes (operating and net margins), a profile in line with a stabilizing but not yet strongly growing business.
- Return on equity of about 8% over the trailing year reflects a moderate level of profit generated relative to shareholders’ invested capital.
- For the current quarter (Q4 2025), the company guided to revenue of $1.48 billion to $1.58 billion, non-GAAP gross margin of 37% to 39%, and non-GAAP earnings per share of $0.57 to $0.67.
Q3 2025 in context
| Metric | Oct 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $1.6B | $1.8B | -12.0% |
| Net income | $255M | $402M | -36.5% |
| Free cash flow | $372M | $304M | +22.5% |
| Diluted EPS | $0.63 | $0.93 | -32.3% |
| Gross margin | 37.9% | 45.4% | -7.5 pts |
| Operating margin | 17.0% | 25.3% | -8.2 pts |
| Net margin | 16.4% | 22.8% | -6.4 pts |
Figures for the quarter ended Oct 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
ON Semiconductor Corp closed at $50.08 on Oct 31, 2025, the last session before the report, and at $48.28 on Nov 4, 2025, the first session after it — -3.6% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: earnings call · company report