ON Semiconductor Corp (NASDAQ:ON) stock rose 3.19% (As on February 10, 11:20:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY25. The company launched a multi-market growth engine with the Treo Platform. The company delivered more than $250 million in AI data center revenue across the power tree. The company expanded the content and automotive for Zonal Architecture. The company broaden the leadership in wide-bandgap technologies by introducing the lateral and vertical GaN or V-GaN strategy with a differentiated product roadmap. This year, the company is preparing to sample more than 30 new GaN devices spanning 40-1,200 volts, including both discrete devices and integrated driver-plus-GaN solutions. For V-GaN, the company is already collaborating with GM on the development of electric drive systems. The company expects first V-GaN revenue in 2027. The cash and short-term investments was approximately $2.5 billion, with total liquidity of $4 billion, including $1.5 billion undrawn on a revolver.
Moreover, in industrial, the company is expanding the opportunity in machine vision, factory automation, drones, and robotics with new families of image sensors with competitive performance, differentiated features, and strong interest from customers seeking a U.S.-based supplier. In aerospace, defense, and security, revenue increased 70% year-over-year, driven by North America and Europe. The company secured a strategic design win for a solid-state circuit breaker using the SiC JFET, demonstrating the ability to win in high-barrier industrial segments where mission-critical performance depends on resilient, reliable power distribution and optimized size and weight.
ON in the fourth quarter of FY25 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 62 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.53 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue by 0.19%. Automotive revenue was $798 million, up approximately 1% quarter-over-quarter. Revenue for industrial was $442 million, up approximately 4% quarter-over-quarter. AI data center revenue, which is classified in the other segment, grew quarter-over-quarter and contributed more than $250 million for the full year. For Q4, non-GAAP gross margin improved to 38.2% and non-GAAP operating margin was 19.8%
Looking ahead, ON Semiconductor provided Q1 2026 revenue guidance between $1.44 billion and $1.54 billion. The company anticipates its first year-over-year growth since the market downturn, driven by high single-digit growth in automotive content and significant contributions from the AI data center sector.