ON Semiconductor Corporation stock research
FY2025 Q4
ON Semiconductor (ON) Gross Margin — Quarter Ended Dec 31, 2025
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue decreased less proportionally, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted sequentially and year-over-year, reflecting that cost of revenue absorbed a larger share of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue decreased less proportionally, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted sequentially and year-over-year, reflecting that cost of revenue absorbed a larger share of revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue fell while cost of revenue declined at a slower pace, compressing gross profit and margin.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, with gross margin weakening. Versus the same quarter one year earlier, revenue was substantially lower, gross profit was markedly lower, and gross margin weakened considerably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$551.0M
Revenue
$1.5B
Cost of revenue
$979.1M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-9.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.5B | $551.0M | $979.1M | 36.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 3, 2025
-1.9 pts
Year-over-year change
Dec 31, 2024
-9.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue fell while cost of revenue declined at a slower pace, compressing gross profit and margin.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, with gross margin weakening. Versus the same quarter one year earlier, revenue was substantially lower, gross profit was markedly lower, and gross margin weakened considerably.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline is the primary factor behind the margin compression.