NXPI Set to Report Q2 Earnings: What's in Store for the Stock?

NXP Semiconductors NXPI is scheduled to report second-quarter 2025  results on July 21, after market close.

NXPI expects second-quarter revenues between $2.80 billion and $3.00 billion. The Zacks Consensus Estimate for revenues is pegged at $2.90 billion, indicating a 7.26% year-over-year decline.

For the second quarter, NXP Semiconductors anticipates non-GAAP earnings per share between $2.46 and $2.86. The consensus mark for earnings is pinned at $2.66 per share, which remained unchanged over the past 30 days, suggesting a 16.88% year-over-year decline.

In the trailing four quarters, NXPI’s earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 0.95%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

NXP Semiconductors N.V. Price and EPS Surprise

NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote

Factors to Consider for NXPI

NXP Semiconductors’ second-quarter performance is likely to have been negatively impacted by persistent weakness in the Automotive and Communication Infrastructure end markets. Ongoing inventory corrections at certain direct Tier 1 auto customers, coupled with a slowdown in demand from European car OEMs, are expected to have exerted pressure on NXP Semiconductors’ prospects in the to-be-reported quarter. Our model estimate for Automotive revenues is currently pegged at $1.6 billion, indicating a decline of 7.2% from the year-ago quarter.

These patterns align with the declining global manufacturing PMI trends and the numerous profit warnings from major Western automakers, which are affecting demand in the industrial and Internet of Things (IoT) markets. However, positive demand momentum across China and the Asia Pacific regions might have partially offset the negative impact from the aforementioned factor. Our model estimate for NXPI’s Industrial & IoT revenues is pegged at $571.8 million, indicating a year-over-year decline of 7.2%.

Further, NXP Semiconductors is anticipated to have faced significant challenges due to the communications infrastructure sector's slowdown, caused by a faster-than-expected shift in demand to gallium nitride products and weaker base station deployments worldwide. Our estimate for the Communications Infrastructure & Others segment revenues for the second quarter of 2025 is pegged at $397.2 million, indicating a decline of 9.3% on a year-over-year basis.

Customers' IT spending is anticipated to have been hurt by macroeconomic headwinds and escalating geopolitical tensions. Our estimate of $325.5 million for the Mobile end market implies a decline of 5.7% from the year-ago quarter.

What Our Proven Model Says for NXPI’s Q2 Earnings

Our proven model does not conclusively predict an earnings beat for NXP Semiconductors this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

NXPI has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Infosys INFY has an Earnings ESP of +1.06% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Infosys is set to report first-quarter fiscal 2026 results on July 23. The Zacks Consensus Estimate for INFY’s first-quarter fiscal 2025 earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a rise of 5.56% from the year-ago quarter’s reported figure. Infosys shares have plunged 16.9% year to date.

Taiwan Semiconductor TSM has an Earnings ESP of +3.25% and a Zacks Rank #2 at present.

Taiwan Semiconductor is set to report second-quarter 2025 results on July 17. The Zacks Consensus Estimate for TSM’s second-quarter 2025 earnings is pegged at $2.37 per share, up by 5 cents over the past 30 days, indicating a rise of 60.14% from the year-ago quarter’s reported figure. Taiwan Semiconductor shares have gained 20% year to date.

ServiceNow NOW has an Earnings ESP of +2.11% and carries a Zacks Rank #3 at present.

It is set to report second-quarter 2025 results on July 23. The Zacks Consensus Estimate for NOW’s second-quarter earnings is pegged at $3.54 per share, up by a penny over the past 30 days, indicating a rise of 13.1% from the year-ago quarter’s reported figure. NOW shares have lost 9.8% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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