ON Gears Up to Report Q3 Earnings: What's in the Cards for the Stock?

Core Insights - On Semiconductor (ON) is expected to report third-quarter 2025 results on November 3, with projected revenues between $1.465 billion and $1.565 billion and earnings per share (EPS) in the range of 54-64 cents [1][10] - The Zacks Consensus Estimate for revenues is $1.52 billion, indicating a 14% decline from the previous year's quarter, while the consensus for earnings is 60 cents per share, reflecting a 39.4% decrease year-over-year [2] Performance Analysis - ON has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 1.25% [3] - Factors likely influencing ON's Q3 performance include stabilization in demand across end-markets, a diversified manufacturing footprint mitigating tariff impacts, and improved market share in China [5][10] - The AI data center market is contributing positively to ON's revenues due to a strong portfolio that enhances power density and reduces energy loss [6] - Ongoing momentum from the Treo platform is expected to continue, driven by its differentiated technology and strong customer engagement [7] Margin Considerations - Weakness in the Americas and Europe is anticipated to negatively affect the automotive end-market, with flat utilization expected to lower gross margins, projected in the 36.5%-38.5% range, significantly below the long-term target of 53% [8][10] - ON currently has an Earnings ESP of -2.70% and a Zacks Rank of 3, indicating lower odds of an earnings beat [9]