ON Semiconductor Corporation stock research
FY2025 Q1
ON Semiconductor (ON) Gross Margin — Quarter Ended Apr 4, 2025
Gross margin weakened significantly compared with both the prior quarter and the year-ago quarter. Revenue declined, and gross profit declined at a faster pace, while cost of revenue also decreased but to a lesser extent.
Gross margin takeaway
Quarter ended Apr 4, 2025 · FY2025 Q1
Gross margin weakened significantly compared with both the prior quarter and the year-ago quarter. Revenue declined, and gross profit declined at a faster pace, while cost of revenue also decreased but to a lesser extent.
- The primary observable driver of the margin change is the relationship between revenue and cost of revenue; revenue declined more steeply than cost of revenue, resulting in a lower gross profit margin.
- Compared to the preceding quarter, gross margin is lower, as revenue decreased while cost of revenue saw a smaller decline. Relative to the same quarter one year earlier, the pattern is similar, with revenue lower and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.3%
Gross profit
$293.8M
Revenue
$1.4B
Cost of revenue
$1.2B
Quarter-over-quarter change
-24.9 pts
Year-over-year change
-25.5 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 |
|---|---|---|---|---|
| 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% |
| Apr 4, 2025 | $1.4B | $293.8M | $1.2B | 20.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-24.9 pts
Year-over-year change
Mar 29, 2024
-25.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the relationship between revenue and cost of revenue; revenue declined more steeply than cost of revenue, resulting in a lower gross profit margin.
Compared to the preceding quarter, gross margin is lower, as revenue decreased while cost of revenue saw a smaller decline. Relative to the same quarter one year earlier, the pattern is similar, with revenue lower and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue to assess whether gross margin can stabilize.