Zacks Research Issues Negative Outlook for ON Earnings

Key Points

• Zacks Research has downgraded its Q2 2026 EPS estimate for ON Semiconductor, from $0.69 to $0.67, reflecting concerns about the company's financial performance.
• ON Semiconductor reported $0.53 EPS for Q3, missing analysts' expectations, with a net revenue decline of 15.4% year-over-year.
• Despite the bearish outlook from Zacks, numerous analysts have maintained their ratings on ON Semiconductor, with price targets ranging from $55.00 to $72.00, reflecting varied opinions on its future performance.

ON Semiconductor Corporation (NASDAQ:ON - Free Report) - Stock analysts at Zacks Research decreased their Q2 2026 earnings per share (EPS) estimates for shares of ON Semiconductor in a research note issued on Tuesday, October 14th. Zacks Research analyst Team now anticipates that the semiconductor company will post earnings per share of $0.67 for the quarter, down from their prior forecast of $0.69. The consensus estimate for ON Semiconductor's current full-year earnings is $2.60 per share. Zacks Research also issued estimates for ON Semiconductor's Q3 2026 earnings at $0.76 EPS, FY2026 earnings at $2.95 EPS, Q1 2027 earnings at $0.78 EPS, Q2 2027 earnings at $0.79 EPS, Q3 2027 earnings at $0.91 EPS and FY2027 earnings at $3.38 EPS.

ON Semiconductor (NASDAQ:ON - Get Free Report) last posted its earnings results on Monday, August 4th. The semiconductor company reported $0.53 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.01). The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.45 billion. ON Semiconductor had a return on equity of 15.33% and a net margin of 7.28%.The company's revenue was down 15.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.96 EPS. ON Semiconductor has set its Q3 2025 guidance at 0.540-0.640 EPS.

Several other research analysts also recently commented on ON. Cantor Fitzgerald initiated coverage on shares of ON Semiconductor in a report on Wednesday, June 18th. They issued a "neutral" rating and a $55.00 price objective for the company. Benchmark reissued a "buy" rating and issued a $60.00 price target (up from $50.00) on shares of ON Semiconductor in a research note on Tuesday, August 5th. The Goldman Sachs Group assumed coverage on shares of ON Semiconductor in a research note on Thursday, July 10th. They issued a "neutral" rating and a $60.00 price target for the company. JPMorgan Chase & Co. boosted their price objective on shares of ON Semiconductor from $48.00 to $56.00 and gave the company a "neutral" rating in a research report on Tuesday, August 5th. Finally, Mizuho boosted their price target on shares of ON Semiconductor from $60.00 to $72.00 and gave the company an "outperform" rating in a research report on Thursday, June 26th. Twelve analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $56.68.

ON Semiconductor Trading Up 1.7%

Shares of ON stock opened at $50.36 on Thursday. The company has a 50 day moving average of $49.62 and a 200-day moving average of $47.94. The company has a quick ratio of 3.37, a current ratio of 5.02 and a debt-to-equity ratio of 0.42. ON Semiconductor has a 12-month low of $31.04 and a 12-month high of $76.06. The firm has a market cap of $20.60 billion, a P/E ratio of 47.07, a PEG ratio of 2.47 and a beta of 1.49.

Insider Activity at ON Semiconductor

In other news, CEO Hassane El-Khoury sold 15,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $51.22, for a total transaction of $768,300.00. Following the sale, the chief executive officer owned 977,814 shares in the company, valued at $50,083,633.08. This represents a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ON Semiconductor

Several hedge funds and other institutional investors have recently modified their holdings of the company. Moody National Bank Trust Division lifted its holdings in shares of ON Semiconductor by 1.5% during the 2nd quarter. Moody National Bank Trust Division now owns 11,404 shares of the semiconductor company's stock valued at $598,000 after buying an additional 169 shares during the period. Freedom Investment Management Inc. raised its position in ON Semiconductor by 2.6% in the second quarter. Freedom Investment Management Inc. now owns 7,853 shares of the semiconductor company's stock worth $412,000 after acquiring an additional 196 shares during the period. Private Trust Co. NA raised its position in ON Semiconductor by 72.8% in the third quarter. Private Trust Co. NA now owns 522 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 220 shares during the period. New York Life Investment Management LLC raised its position in ON Semiconductor by 0.4% in the second quarter. New York Life Investment Management LLC now owns 62,678 shares of the semiconductor company's stock worth $3,285,000 after acquiring an additional 221 shares during the period. Finally, Sowell Financial Services LLC raised its position in ON Semiconductor by 4.1% in the second quarter. Sowell Financial Services LLC now owns 5,668 shares of the semiconductor company's stock worth $297,000 after acquiring an additional 223 shares during the period. 97.70% of the stock is owned by institutional investors.

About ON Semiconductor

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group.

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