ON Semiconductor Corporation stock research
FY2024 Q3
ON Semiconductor (ON) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and gross profit both improved sequentially, while cost of revenue increased at a slower rate, leading to a slightly higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q3
Revenue and gross profit both improved sequentially, while cost of revenue increased at a slower rate, leading to a slightly higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
- Gross profit moved in tandem with revenue, with cost of revenue growing proportionally less than revenue on a sequential basis, supporting a stable gross margin sequentially.
- Revenue and gross profit were higher than the immediately preceding quarter, with gross margin slightly improved. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, while cost of revenue also decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.4%
Gross profit
$799.4M
Revenue
$1.8B
Cost of revenue
$962.5M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $2.0B | $941.9M | $1.1B | 46.7% |
| Mar 29, 2024 | $1.9B | $853.6M | $1.0B | 45.8% |
| Jun 28, 2024 | $1.7B | $784.0M | $951.2M | 45.2% |
| Sep 27, 2024 | $1.8B | $799.4M | $962.5M | 45.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
+0.2 pts
Year-over-year change
Sep 29, 2023
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit moved in tandem with revenue, with cost of revenue growing proportionally less than revenue on a sequential basis, supporting a stable gross margin sequentially.
Revenue and gross profit were higher than the immediately preceding quarter, with gross margin slightly improved. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, while cost of revenue also decreased.
Monitor whether the sequential improvement in gross margin can sustain, given the year-over-year weakening trend.