ON Semiconductor’s board of directors approved a new share‑repurchase program of up to $6 billion, effective January 1, 2026 and expiring December 31, 2028. The authorization doubles the company’s existing $3 billion program, which expired on December 31, 2025.
Under the prior authorization, ON Semiconductor had already repurchased $2.1 billion of common stock over the past three years, using roughly 100 % of its 2025 free cash flow for buybacks. The new program signals management’s confidence that the company’s balance sheet and cash‑flow generation are robust enough to support both strategic investments and a larger return of capital to shareholders.
The decision aligns with ON Semiconductor’s focus on automotive, industrial, and AI data‑center markets. CEO Hassane El‑Khoury emphasized that the expanded buyback reflects confidence in the company’s long‑term strategy and that the firm will continue to invest in differentiated technologies such as wide‑bandgap semiconductors and AI‑enabled power solutions. CFO Thad Trent noted that the doubled authorization demonstrates disciplined capital management and a commitment to creating long‑term shareholder value.
Financially, the company reported Q3 2025 revenue of $1.55 billion, down 12 % year‑over‑year but up 6 % sequentially, and non‑GAAP earnings per share of $0.63, beating the consensus estimate of $0.59 by $0.04. Gross margin stood at 38.0 % (GAAP 37.9 %), an improvement from 37.6 % in Q2 2025 but lower than 45.5 % in Q3 2024. The YoY margin decline reflects a shift toward lower‑margin segments, while the sequential gain indicates a favorable mix and effective cost control.
For Q4 2025, ON Semiconductor guided revenue of $1.48 billion to $1.58 billion and EPS of $0.57 to $0.67, with a gross‑margin target of 37 % to 39 %. The guidance range, consistent with prior expectations, signals management’s confidence in maintaining profitability amid a mixed macro environment and continued demand in core markets.
Investors reacted positively to the announcement, interpreting the enlarged buyback authority as a strong signal of management’s confidence in the company’s financial health and future prospects. The move also underscores ON Semiconductor’s strategy to balance capital returns with ongoing investment in high‑growth areas such as electrification and AI.
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