ON Semiconductor Corporation stock research
FY2025 Q3
ON Semiconductor (ON) Gross Margin — Quarter Ended Oct 3, 2025
In the current quarter, revenue increased sequentially while cost of revenue also rose, resulting in a higher gross profit and a slightly improved gross margin. Compared to the same quarter last year, revenue was lower and gross profit decreased more, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Oct 3, 2025 · FY2025 Q3
In the current quarter, revenue increased sequentially while cost of revenue also rose, resulting in a higher gross profit and a slightly improved gross margin. Compared to the same quarter last year, revenue was lower and gross profit decreased more, leading to a weakened gross margin.
- The change in gross margin is primarily driven by the relationship between revenue and cost of revenue. The sequential improvement reflects a greater proportionate increase in revenue relative to cost. The year-over-year decline is due to revenue falling while cost remained similar.
- Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.9%
Gross profit
$587.2M
Revenue
$1.6B
Cost of revenue
$963.7M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-7.5 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 |
|---|---|---|---|---|
| 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% |
| Oct 3, 2025 | $1.6B | $587.2M | $963.7M | 37.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 4, 2025
+0.3 pts
Year-over-year change
Sep 27, 2024
-7.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin is primarily driven by the relationship between revenue and cost of revenue. The sequential improvement reflects a greater proportionate increase in revenue relative to cost. The year-over-year decline is due to revenue falling while cost remained similar.
Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened significantly.
Monitor trends in cost of revenue relative to revenue, particularly if cost remains stable as revenue fluctuates.