ON Semiconductor Corporation (ON) AI Stock Analysis

ON Semiconductor Corporation delivers advanced sensing and power semiconductor solutions globally. The business operates across three segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. Its technologies support automotive electrification, including electric vehicle range extension, rapid charging systems, and renewable energy infrastructure like solar power and industrial storage. The company's portfolio features analog, discrete, module, and integrated solutions for voltage regulation, circuit protection, signal conditioning, and power conversion. It also designs application-specific integrated circuits (ASICs), radio frequency products, and provides foundry services. In addition, ON Semiconductor develops complementary metal oxide semiconductor (CMOS) image sensors and single photon detectors for automotive and industrial applications.

ON Semiconductor experienced revenue expansion from $6.74B in FY2021 to a peak of $8.33B in FY2022, before retreating to $8.25B in FY2023, $7.08B in FY2024, and $6.00B in FY2025. Over the five-year period from FY2020 to FY2025, revenue achieved a compound annual growth rate of 2.7%. Operating margin compressed from 28.3% in FY2022 to 1.4% in FY2025, while net margin fell to 2.0%, yielding FY2025 net income of $121.0M and diluted EPS of $2.35. Performance rebounded in the latest quarter ended June 30, 2026, where quarterly revenue rose 9.2% year-over-year and quarterly earnings climbed 36.6%. Trailing twelve-month revenue reached $6.20B with an operating margin of 19.5% and EPS of $1.55.

As of June 30, 2026, ON Semiconductor held $3.86B in cash and short-term investments against total debt of $4.48B, resulting in net debt of $618.2M. The company reported total assets of $13.49B and shareholders' equity of $7.22B, representing a debt-to-equity ratio of 0.62 and a current ratio of 3.46. In FY2025, the company generated $1.76B in operating cash flow and $1.42B in free cash flow. Capital allocation in FY2025 included capital expenditures of $341.2M and share buybacks of $1.38B, contributing to a 9.2% reduction in share count over five years.

At $72.02 per share, ON Semiconductor has a market cap of $28.04B and an enterprise value of $29.27B. The stock trades at a trailing P/E of 46.5x, which is above the 30.8x median of its S&P 500 Technology peers. However, its forward P/E of 16.5x, price-to-sales of 4.5x, and EV/EBITDA of 18.8x trade below peer group medians of 20.9x, 6.3x, and 19.9x, respectively. The stock's PEG ratio is 0.16. Over the trailing 12 months, the stock returned 36.0% compared to 16.8% for the S&P 500 (SPY), though its five-year return of 66.2% trails the index return of 83.0%.

Wall Street coverage includes 13 Strong Buy, 2 Buy, and 16 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $104.67, representing a 45.3% upside from the last closing price of $72.02. For the fiscal year ending December 31, 2026, analysts anticipate revenue of $6.56B and EPS of $3.21, reflecting projected EPS growth of 36.4%. For the following fiscal year, 32 analysts forecast revenue of $7.42B and EPS of $4.54. ON Semiconductor beat EPS estimates in each of its last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of ON Semiconductor Corporation (ON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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