Onsemi reports Q4 revenue down 11% YoY to $1.53B, vs. $1.54B est., as its two biggest business units continue to post sales declines; ON drops 4%+ after hours
The semiconductor company posted a profit of $181.8 million — On Semiconductor's revenue fell in the fourth quarter …
Context & Ripple Effects
Onsemi’s results extend a run of weak reported performance among named chipmakers. STMicroelectronics had already reported a sharp fourth-quarter revenue and profit decline in early 2025, followed by another quarter of lower sales and sharply reduced operating income later that year.
For Onsemi, the significance is that weakness is persisting in its two largest units rather than being isolated to a smaller line of business, while the after-hours share-price move shows investors treated the slight revenue miss as material.
First-order effects
- Onsemi remains profitable, but its $1.53B quarterly revenue and continued declines in its two biggest units put immediate pressure on management to arrest sales erosion.
- Shares fell more than 4% after hours, directly reducing the market’s valuation of ON following the results.
Second-order effects
- The results reinforce a difficult benchmark for peer chipmakers, especially STMicroelectronics, whose recent reports also showed declining sales and earnings; investors will scrutinize whether revenue stabilization is emerging across the group.
- Persistent weakness in Onsemi’s largest units narrows the room for a near-term earnings rebound, making future guidance and business-unit performance more consequential to the stock than headline profitability alone.
Third-order effects
- If repeated across subsequent quarters, consecutive declines at major business units would point to a more prolonged demand-and-inventory adjustment for affected chipmakers rather than a one-quarter miss.
- The pattern would widen the divide between semiconductor companies able to restore growth and those whose earnings remain constrained by sustained revenue pressure.
The trend: This is one data point in a continuing period of uneven revenue recovery and earnings pressure among selected chipmakers.