
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
Onsemi's outlook is bolstered by anticipated double-digit revenue growth in latest-generation Field Stop 7 IGBT technology projected for 2026, indicating strong demand for advanced power semiconductor solutions. The company's automotive revenue exceeded expectations by approximately 5%, driven by robust performance in key markets such as the Americas, China, and Japan, while overall revenue of $1,550.9 million surpassed consensus estimates. Additionally, a notable 72% year-over-year improvement in free cash flow, alongside a strong focus on AI revenue growth projected to reach around $250 million by 2025, further highlights Onsemi's commitment to long-term profitability and operational efficiency.
Bears say
The financial analysis indicates a negative outlook for ON Semiconductor due to persistent gross margin pressure, with guidance for 2Q gross margin expected to be around 37.5%, reflecting a substantial decline of 250 basis points quarter-over-quarter. Additionally, the company reported a significant year-over-year decrease in industrial revenue, down 16%, and fell short of consensus expectations in major cash flow metrics, including free cash flow, operating cash flow, and capital expenditures. Operating margin also experienced a notable contraction, falling 840 basis points to 18.3%, marking its lowest level since the first quarter of 2021, further underscoring the challenges faced in sustaining profitability amid shifting market dynamics.
This aggregate rating is based on analysts' research of ON Semiconductor and is not a guaranteed prediction by Public.com or investment advice.
ON Semiconductor (ON) Analyst Forecast & Price Prediction
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