ON Semiconductor(US:ON) Feng Huang Wang·2026-02-22 05:18Core Insights - The company reported its Q4 and full-year 2025 results, achieving a revenue of $1.53 billion in Q4 and a total annual revenue of $5.9954 billion, with a record free cash flow margin of 24% [2][3] Financial Performance - Q4 revenue was $1.53 billion, with a GAAP gross margin of 36.0% and a non-GAAP gross margin of 38.2% [2] - The company generated $1.4 billion in free cash flow for the year and returned 100% of this to shareholders through stock buybacks [3] - The company’s Q4 GAAP diluted earnings per share were $0.45, while non-GAAP diluted earnings per share were $0.64 [2] Business Highlights - A new stock buyback plan was authorized, allowing for the repurchase of up to $6 billion over the next three years [4] - The company launched vertical GaN power semiconductors, setting new benchmarks for power density, efficiency, and robustness [4] - Collaborations were established with Innoscience and GlobalFoundries to expand GaN power device production [4] Segment Performance - In Q4, the Power Solutions segment generated $724.2 million, a decrease of 2% quarter-over-quarter and 11% year-over-year [4] - The Analog and Mixed Signal segment reported $556.3 million, down 5% quarter-over-quarter and 9% year-over-year [4] - The Smart Sensing segment saw revenue of $249.6 million, up 9% quarter-over-quarter but down 17% year-over-year [4] Future Outlook - For Q1 2026, the company expects revenue between $1.435 billion and $1.535 billion, with GAAP gross margins projected between 37.4% and 39.4% [4] - GAAP diluted earnings per share are anticipated to be between $0.28 and $0.38, while non-GAAP diluted earnings per share are expected to range from $0.56 to $0.66 [4]