onsemi's Net Income Drops 49.63% in Q2 2025

onsemi reported its Q2 2025 financial results, with revenue reaching $1,468.7 million, reflecting a 15% year-over-year decrease from Q2 2024's $1,735.2 million. The company's net income for the quarter was $170.3 million, marking a significant 49.63% decline compared to $338.2 million in Q2 2024. Despite the revenue decrease, the reported non-GAAP diluted earnings per share of $0.53 aligned with analyst estimates.

Segment Performance

The company's performance across its business segments showed a general decline year-over-year. The PSG segment generated $698.2 million in revenue, down 16% from Q2 2024. The AMG segment reported $555.9 million, a 14% decrease, while the ISG segment recorded $214.6 million, a 15% decline compared to the same period last year.

Management Outlook

Hassane El-Khoury, president and CEO of onsemi, highlighted signs of stabilization across their end markets and expressed confidence in the company's position to benefit from a market recovery. He emphasized the ongoing transformation towards a more predictable business model and continued investments in next-generation technologies for long-term growth and market leadership.

Third Quarter 2025 Outlook

For the third quarter of 2025, onsemi projects revenue to be in the range of $1,465 million to $1,565 million. Non-GAAP diluted earnings per share are expected to be between $0.54 and $0.64. The company anticipates a non-GAAP gross margin between 36.5% and 38.5%, with operating expenses estimated to be in the range of $280 million to $295 million.