NXP Semiconductors Q3 Earnings Match Estimates, Revenues Fall Y/Y

NXP Semiconductors (NXPI) reported third-quarter 2025 non-GAAP earnings of $3.11 per share, matching the Zacks Consensus Estimate. However, the figure declined 10% year over year.

NXP Semiconductors’ top line of $3.17 billion beat the Zacks Consensus Estimate of $3.15 billion by 0.6% and came above the midpoint of management’s guidance. The figure declined 2% year over year.

NXPI’s Q3 2025 Details

Revenues from Automotive (57.9% of total revenues) in the third quarter were $1.84 billion, up 0.4% year over year and 6% sequentially. Our model estimate for Automotive revenues was pegged at $1.82 billion, which indicated a 0.2% year-over-year decline.

Third-quarter revenues from Mobile (13.6% of total revenues) were $430 million, up 6% year over year and 30% from the previous quarter. Our model estimate for Mobile revenues was pegged at $402.7 million, which indicated a 1% year-over-year decline.

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

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

Revenues from Communication Infrastructure & Others (10.3% of total revenues) were $327 million, representing a 27% decline from the year-ago quarter and a 2% increase sequentially. Our model estimate for Communication Infrastructure & Others revenues was pegged at $411.8 million, which indicated an 8.7% year-over-year decline.

Revenues from Industrial & IoT (18.2% of total revenues) were $579 million, up 3% from the year-ago quarter and up 6% sequentially. Our model estimate for Industrial & IoT revenues was pegged at $512 million, which indicated a 9.1% year-over-year decline.

NXPI’s non-GAAP gross profit in the third quarter was $1.81 billion, down 4% year over year and up 10% sequentially. The non-GAAP gross margin of 57% contracted 120 basis points year over year but improved 50 basis points sequentially.

Non-GAAP operating income declined 7% year over year to $1.07 billion, with the operating margin shrinking 170 basis points to 33.8%. On a quarter-over-quarter basis, non-GAAP operating income increased 15% while margin improved 180 basis points.

NXPI’s Balance Sheet & Cash Flow

As of Sept. 28, 2025, NXPI’s cash and cash equivalents were $3.45 billion, up from $3.17 billion as of June 29, 2025.

Long-term debt at the end of the third quarter was $10.97 billion, up from $9.48 billion in the prior quarter.

Cash flow from operations was $585 million. Capital expenditures amounted to $76 million, leading to a non-GAAP free cash flow of $509 million.

During the quarter, NXPI paid dividends of $256 million and repurchased shares worth $54 million.

NXPI’s Q4 Guidance

For the fourth quarter of 2025, NXPI expects revenues in the range of $3.2-$3.4 billion. The Zacks Consensus Estimate for the same is pegged at $3.21 billion, indicating a year-over-year increase of 3.1%.

NXPI expects non-GAAP earnings per share in the band of $3.07-$3.49. The Zacks Consensus Estimate for the same is pegged at $3.23, indicating a year-over-year increase of 1.6%.

Zacks Rank and Other Stocks to Consider

Currently, NXPI carries a Zacks Rank #2 (Buy).

Impinj (PI), Credo Technology Group (CRDO) and Amphenol (APH) are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Impinj’s full-year 2025 earnings is pegged at $1.98 per share, revised upward by 4 cents over the past 30 days and suggests a year-over-year decline of 6.2%. Impinj shares have soared 63.7% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, suggesting an increase of 191.4% year over year. Credo Technology Group shares have rallied 133.9% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past seven days, reflecting 70.4% year-over-year growth. Amphenol shares have risen 95.7% year to date.

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

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