ON Semiconductor Corporation stock research
FY2025 Q2
ON Semiconductor (ON) Gross Margin — Quarter Ended Jul 4, 2025
Revenue increased compared to the prior quarter, while cost of revenue decreased, leading to a substantial improvement in gross profit and gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Jul 4, 2025 · FY2025 Q2
Revenue increased compared to the prior quarter, while cost of revenue decreased, leading to a substantial improvement in gross profit and gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
- The most observable driver of the margin improvement is the combination of higher revenue and lower cost of revenue relative to the prior quarter. This relationship directly boosted gross profit and margin.
- Gross margin improved compared to the immediately preceding quarter but was lower than the same quarter one year earlier. Revenue and gross profit followed a similar pattern, while cost of revenue was lower than the prior quarter but slightly below the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$551.9M
Revenue
$1.5B
Cost of revenue
$916.8M
Quarter-over-quarter change
+17.3 pts
Year-over-year change
-7.6 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 |
|---|---|---|---|---|
| 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% |
| Jul 4, 2025 | $1.5B | $551.9M | $916.8M | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 4, 2025
+17.3 pts
Year-over-year change
Jun 28, 2024
-7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin improvement is the combination of higher revenue and lower cost of revenue relative to the prior quarter. This relationship directly boosted gross profit and margin.
Gross margin improved compared to the immediately preceding quarter but was lower than the same quarter one year earlier. Revenue and gross profit followed a similar pattern, while cost of revenue was lower than the prior quarter but slightly below the year-ago level.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was a key factor in the margin improvement.