ON Semiconductor Corp. (NASDAQ: ON) released its fiscal Q2 2025 results on August 4, 2025, revealing a nuanced picture for investors and industry observers. While revenue fell 15.36% year-over-year to $1.47 billion, slightly outpacing Wall Street’s consensus estimate of $1.45 billion, investors reacted cautiously as ongoing pricing pressures weighed on results. The company posted an adjusted EPS of $0.53, matching analysts’ projections and demonstrating cost discipline during a tough operating landscape.
CEO Hassane El-Khoury addressed stakeholders in the post-earnings call, highlighting a period of significant transition for the semiconductor market. According to El-Khoury, while pricing headwinds from inventory digestion and soft demand across automotive and industrial end-markets impacted top line results, he expects stabilization moving into the latter half of 2025. El-Khoury emphasized ON Semiconductor’s strategy to focus on value-driven markets, particularly those in the automotive and power sectors, to better weather macroeconomic uncertainty.
The company’s Power Solutions Group (PSG), a key growth engine tied to electric vehicles and energy infrastructure, reported a 16% year-on-year decline in revenue. The Analog Solutions Group (ASG) also saw softer results, reflecting broad-based caution among customers. Yet, management remains optimistic, citing robust design win pipelines, especially in silicon carbide and intelligent power solutions, that position ON to capture future demand as the market rebounds.
Recent partnerships, including collaborations with leaders in artificial intelligence and automotive chip manufacturing, further underpin confidence in ON Semi’s ability to capitalize on next-generation growth cycles. The company’s ongoing focus on supply chain resilience, operational efficiency, and R&D investments are key pillars of this long-term vision.
Despite near-term volatility, ON Semiconductor sees a path to recovery, supported by industry trends favoring electrification, green energy solutions, and smart automotive technologies. Investors will closely watch the next two quarters for evidence of the stabilization El-Khoury anticipates. For now, ON Semiconductor stands at a critical crossroads, balancing current weaknesses with a forward-looking strategy that seeks to transform price pressures into new opportunities for growth.
