ON Semiconductor (ON)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-07-07
$91.10-3.79%
Close 2026-07-07 · 1-day change
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Track ON free→ON Semiconductor aims to grow in automotive, industrial, and AI markets. Revenue was $1.513B in 2026-Q1. They plan to improve gross margin to about 38.9% next quarter. The company returned $1.4B to shareholders in 2025 by buying back shares.
Revenue and profit margins have fallen over the past year. Operating income dropped from $408M to a loss of $53M. Pricing issues may slow market growth. Leadership changes add uncertainty.
The price is about 5% above our fair value near $89. Analysts expect 12% revenue growth. Our fair value is 26% below the Street median, showing some caution.
Breaks if: share repurchases fall below $1.4B in 2026
Continue returning capital to shareholders by repurchasing shares, targeting high free cash flow conversion.
Stated as a priority in 6 of last 6 quarters. The company returned $1.4B of free cash flow in 2025 through share repurchases and authorized a new $6B repurchase program. Repurchases increased from $654M in 2025-Q4 to $1.378B in 2026-Q1, showing delivery on capital return commitments.
Breaks if: gross margin falls below 37.9% in 2026-Q2
Focus on improving gross margin and operational efficiency through cost structure management and margin expansion.
Stated as a priority in 6 of last 6 quarters. GAAP gross margin declined from 45.2% in 2024-Q4 to 38.5% in 2026-Q1 (-6.7 pts). Operating income dropped from $408M in 2024-Q4 to -$53M in 2026-Q1, showing operational challenges. Despite repeated focus on margin expansion and cost management, financials indicate declining margins and operating income, reflecting limited progress.
Breaks if: revenue falls below $1.513B in 2026-Q2
Continue to grow market share and product offerings in automotive, industrial, and AI data center end-markets.
Stated as a priority in 6 of last 6 quarters. Revenue declined from $1.722B in 2024-Q4 to $1.513B in 2026-Q1 (-12.2%). PSG segment revenue fell 16.3% year-over-year in 2025-Q4. Despite recurring emphasis on growth in automotive, industrial, and AI data center markets, revenue trends show declining sales, indicating limited progress in market expansion.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Returned $1.4 billion of 2025 free cash flow through share repurchases.”
“Authorized a new share repurchase program of up to $6 billion over the next three years.”
“Year-to-date share repurchases of $925 million, approximately 100% of free cash flow.”
“Returned over 100% of free cash flow year-to-date through share repurchases.”
“Returned 66% of first quarter free cash flow to stockholders through share repurchases.”
“Returned 54% of 2024 free cash flow through share repurchases.”
“Our focus remains on operational excellence and margin expansion.”
“We continue to drive meaningful improvements to our cost structure across the company.”
“We are creating greater leverage in our operating model going forward.”
“We are managing our cost structure and workforce restructuring.”
“We are committed to managing our cost structure, right-sizing manufacturing footprint, and rationalizing portfolio.”
“We maintain financial discipline and streamline operations to deliver high-value solutions.”
“Our strategy is clear: lead in automotive, industrial, and AI data center power with innovation.”
“We continue to invest in intelligent power and sensing technologies that position us to win in critical technology transitions.”
“We are expanding our offering to deliver system-level value that enables customers to achieve more with less power.”
“We are positioning the company for long-term growth through investments in next-generation technologies.”
“We continue to see strong design win momentum driven by industry-leading performance across all end-markets.”
“We remain committed to our long-term strategy and delivering high-value, differentiated intelligent power and sensing solutions.”