onsemi (ON) Surges on EPS Beat, But Q1 Outlook Weaks; Trade with Caution

onsemi (NASDAQ:ON) closed up 3.1% after reporting mixed fourth-quarter results: adjusted EPS of $0.64, beating the $0.62 estimate, and revenue of $1.53B, down 11.2% year-over-year. The positive surprise was offset by a cautious Q1 outlook, with revenue and earnings both expected to miss. Free cash flow margin stood at 31.7%. Despite weakness, the stock reversed an initial 4.6% drop to $66.82, a 1.7% gain from close. The 52-week high of $66.82 was set; YTD gains are 17.9%, with a 5-year total return of 66.4% (about $1,674 on a $1,000 investment). Volatility remains high, with 31+ moves greater than 5% in the past year. Note: The broader semiconductor sector faced headwinds from Intel’s disappointing Q4 results and a cautious Q1 forecast, signaling continued supply constraints into 2026.