On Semiconductor Earnings Show Q4 Revenue Decline

On Semiconductor Earnings (ON) reported year-over-year revenue weakness in a Feb. 9, 2026, press release, while non-GAAP earnings per share (EPS) exceeded consensus. The company issued cautious Q1 2026 guidance with a narrow revenue range and restrained profit targets.

Quarter Results and Q1 2026 Guidance

On Semiconductor’s fourth-quarter revenue totaled $1.53 billion, down 11% from $1.72 billion a year earlier. GAAP diluted EPS was $0.45, and non-GAAP diluted EPS was $0.64, surpassing the Zacks consensus of $0.62. The company reported a GAAP gross margin of 36.0% and a non-GAAP gross margin of 38.2%, with GAAP and non-GAAP operating margins at 13.1% and 19.8%, respectively. The results were disclosed in a press release without an accompanying SEC filing.

For the first quarter, management projected non-GAAP revenue between $1.435 billion and $1.535 billion, a non-GAAP gross margin of 37.4% to 39.4%, and non-GAAP operating expenses of $407 million to $422 million. Other income and expense net was forecast at a negative $7 million. Non-GAAP diluted EPS was expected to range from $0.28 to $0.38 on roughly 398 million diluted shares. The narrow revenue band and EPS range indicate a cautious near-term outlook following the revenue decline.

Cash Flow and Capital Returns

For full-year 2025, revenue reached approximately $7.1 billion. Cash from operations totaled $1.8 billion, and free cash flow was $1.4 billion, representing a 24% margin. The company returned the entire free cash flow to shareholders through $1.4 billion in share repurchases.

The quarter presented a mixed picture: declining sales alongside margins and per-share profitability that exceeded expectations, supported by strong cash generation returned to shareholders. This combination of shrinking revenue, resilient margins, and significant buybacks will shape investor and analyst assessments of the company’s near-term prospects as markets digest the results and guidance.