NXP Semiconductors' Q4 Earnings and Revenues Beat Estimates

NXP Semiconductors NXPI ended 2025 on a strong note, reporting better-than-expected results for the fourth quarter. The top and bottom lines marked a year-over-year improvement as well.

NXP Semiconductors reported non-GAAP earnings of $3.35 per share, surpassing the Zacks Consensus Estimate by 1.41%. The figure increased 5% year over year.

NXP Semiconductors’ top line of $3.34 billion beat the Zacks Consensus Estimate of $3.30 billion and came above the midpoint of management’s guidance range of $3.2-$3.4 billion. The figure rose 7% year over year.

NXPI’s Q4 Details

Revenues from Automotive (56.3% of total revenues) in the fourth quarter were $1.88 billion, up 5% year over year and 2% sequentially. Revenues from Industrial & IoT (19.2% of total revenues) were $640 million, up 24% from the year-ago quarter and up 11% sequentially.

Fourth-quarter revenues from Mobile (14.5% of total revenues) were $485 million, up 22% year over year and 13% from the previous quarter. Revenues from Communication Infrastructure & Others (10% of total revenues) were $334 million, representing a 18% decline from the year-ago quarter and a 2% increase sequentially.

NXP Semiconductors’ non-GAAP gross profit in the fourth quarter was $1.91 billion, up 7% year over year and 6% sequentially. The non-GAAP gross margin of 57.4% contracted 10 basis points year over year but improved 40 basis points sequentially.

Non-GAAP operating income increased 8% year over year and sequentially to $1.15 billion. The non-GAAP operating margin expanded 40 basis points year over year and 80 basis points sequentially to 34.6%.

NXPI’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, NXPI’s cash and cash equivalents were $3.27 billion, up from $3.45 billion as of Sept. 28, 2025.

Long-term debt at the end of the fourth quarter was $10.97 billion, unchanged from the previous quarter.

NXP Semiconductors generated operating cash flow of $891 million and free cash flow of $793 million in the fourth quarter. During full-year 2025, it generated operating cash flow and free cash flow of $2.82 billion and $2.43 billion, respectively.

During the quarter, NXPI paid dividends of $254 million and repurchased shares worth $338 million. In 2025, it paid dividends of $1.03 billion and repurchased shares worth $899 million.

NXPI Initiates Q1 2026 Guidance

For the first quarter of 2026, NXP Semiconductors expects revenues in the range of $3.05-$3.25 billion. The Zacks Consensus Estimate for the same is pegged at $3.09 billion, indicating a year-over-year increase of 9.1%.

NXPI expects non-GAAP earnings per share in the band of $2.77-$3.17. The Zacks Consensus Estimate for the same is pegged at $2.99, calling for a year-over-year jump of 13.3%.

NXPI’s Zacks Rank & Other Stocks to Consider

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

Amphenol APH, Micron Technology MU and Analog Devices ADI are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Amphenol and Micron Technology sport a Zacks Rank #1 (Strong Buy) each at present, while Analog Devices carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised upward by 5 cents over the past seven days to $4.35 per share, calling for an increase of 30.2% year over year. Amphenol shares have surged 107.4% over the past year.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved southward by 14 cents in the past seven days to $32.90 per share, implying 296.9% year-over-year growth. Micron Technology shares have soared 386.9% over the past year.

The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved northward by 21 cents over the past 30 days to $9.97 per share, indicating a year-over-year increase of 28%. Analog Devices shares have rallied 54.4% over the past year.

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

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