ON Semiconductor Corporation stock research
FY2024 Q4
ON Semiconductor (ON) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from a year ago.
- The decline in gross margin was primarily driven by a proportionally larger decrease in gross profit relative to revenue, as cost of revenue did not fall at the same pace.
- Compared to the prior quarter, revenue and gross profit were lower, while gross margin was slightly weaker. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, with gross margin showing a more pronounced decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.2%
Gross profit
$779.1M
Revenue
$1.7B
Cost of revenue
$943.4M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-1.4 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $1.7B | $779.1M | $943.4M | 45.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
-0.1 pts
Year-over-year change
Dec 31, 2023
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was primarily driven by a proportionally larger decrease in gross profit relative to revenue, as cost of revenue did not fall at the same pace.
Compared to the prior quarter, revenue and gross profit were lower, while gross margin was slightly weaker. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, with gross margin showing a more pronounced decline.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.