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NXP Semiconductors Q2 Earnings Beat Estimates, Revenues Fall Y/Y
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Key Takeaways
Q2 EPS hit $2.72, topping estimates by 2%, but declined 15% year over year on margin pressure.
Revenues came in at $2.93B, up 0.9% over consensus, though down 6% year over year amid IoT and comms weakness.
Q3 guidance forecasts $3.05-$3.25B revenues and $2.89-$3.30 EPS, both projecting Y/Y declines.
NXP Semiconductors (NXPI - Free Report) reported second-quarter 2025 non-GAAP earnings of $2.72 per share, beating the Zacks Consensus Estimate by 2.26%. The figure declined 15% year over year.
NXP Semiconductors’ top line of $2.93 billion beat the Zacks Consensus Estimate of $2.90 billion by 0.9% and came above the midpoint of management’s guidance. The figure declined 6% year over year.
NXPI stock declined 5.94% in the after-market trading hours on Monday.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
Revenues from Automotive (59.1% of total revenues) in the second quarter were $1.73 billion, up 0.1% year over year and 3% sequentially. Our model estimate for Automotive revenues was pegged at $1.6 billion, which indicated a 7.2% year-over-year decline.
Second-quarter revenues from Mobile (11.3% of total revenues) were $331 million, down 4% year over year and 2% from the previous quarter. Our model estimate for Mobile revenues was pegged at $325.5 million, which indicated a 5.7% year-over-year decline.
Revenues from Communication Infrastructure & Others (10.9% of total revenues) were $320 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 $397.2 million, which indicated a 9.3% year-over-year decline.
Revenues from Industrial & IoT (18.7% of total revenues) were $546 million, down 11% from the year-ago quarter and up 7% sequentially. Our model estimate for Industrial & IoT revenues was pegged at $571.8 million, which indicated a 7.2% year-over-year decline.
NXPI’s non-GAAP gross profit in the second quarter was $1.66 billion, down 10% year over year and up 4% sequentially. The non-GAAP gross margin contracted 210 basis points year over year to 56.5%.
Non-GAAP operating income declined 13% year over year to $935 million, with the operating margin shrinking 230 basis points to 32% from the year-ago quarter.
NXPI’s Balance Sheet & Cash Flow
As of June 29, 2025, NXPI’s cash and cash equivalents were $3.170 billion, down from $3.988 billion as of March 30, 2025.
Long-term debt at the end of the second quarter was $9.479 billion, down from $10.226 billion in the prior quarter.
Cash flow from operations was $779 million, up from $565 million in the previous quarter. Capital expenditures amounted to $83 million, leading to a non-GAAP free cash flow of $696 million.
During the quarter, NXPI paid dividends of $257 million and repurchased shares worth $204 million.
NXPI’s Q3 Guidance
For the third quarter of 2025, NXPI expects revenues in the range of $3.05-$3.25 billion. The Zacks Consensus Estimate for the same is pegged at $3.07 billion, indicating a year-over-year decline of 5.51%.
NXPI expects non-GAAP earnings per share in the band of $2.89-$3.30. The Zacks Consensus Estimate for the same is pegged at $3.02, indicating a year-over-year decline of 12.46%.
ACIW shares have lost 13.3% year to date. The Zacks Consensus Estimate for ACIW’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past seven days, implying growth of 7.58% from the year-ago quarter’s reported figure.
ADBE shares have lost 17.2% year to date. The Zacks Consensus Estimate for ADBE’s full-year fiscal 2025 earnings has been revised upward to $20.63 per share in the past 30 days, indicating year-over-year growth of 12%.
AMAT shares have gained 18.4% year to date. The Zacks Consensus Estimate for AMAT’s full-year 2025 earnings is pegged at $9.47 per share, up by a penny over the past 60 days, implying a rise of 9.48% from the year-ago quarter’s reported figure.
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NXP Semiconductors Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Key Takeaways
NXP Semiconductors (NXPI - Free Report) reported second-quarter 2025 non-GAAP earnings of $2.72 per share, beating the Zacks Consensus Estimate by 2.26%. The figure declined 15% year over year.
NXP Semiconductors’ top line of $2.93 billion beat the Zacks Consensus Estimate of $2.90 billion by 0.9% and came above the midpoint of management’s guidance. The figure declined 6% year over year.
NXPI stock declined 5.94% in the after-market trading hours on Monday.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote
NXPI’s Q2 2025 Details
Revenues from Automotive (59.1% of total revenues) in the second quarter were $1.73 billion, up 0.1% year over year and 3% sequentially. Our model estimate for Automotive revenues was pegged at $1.6 billion, which indicated a 7.2% year-over-year decline.
Second-quarter revenues from Mobile (11.3% of total revenues) were $331 million, down 4% year over year and 2% from the previous quarter. Our model estimate for Mobile revenues was pegged at $325.5 million, which indicated a 5.7% year-over-year decline.
Revenues from Communication Infrastructure & Others (10.9% of total revenues) were $320 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 $397.2 million, which indicated a 9.3% year-over-year decline.
Revenues from Industrial & IoT (18.7% of total revenues) were $546 million, down 11% from the year-ago quarter and up 7% sequentially. Our model estimate for Industrial & IoT revenues was pegged at $571.8 million, which indicated a 7.2% year-over-year decline.
NXPI’s non-GAAP gross profit in the second quarter was $1.66 billion, down 10% year over year and up 4% sequentially. The non-GAAP gross margin contracted 210 basis points year over year to 56.5%.
Non-GAAP operating income declined 13% year over year to $935 million, with the operating margin shrinking 230 basis points to 32% from the year-ago quarter.
NXPI’s Balance Sheet & Cash Flow
As of June 29, 2025, NXPI’s cash and cash equivalents were $3.170 billion, down from $3.988 billion as of March 30, 2025.
Long-term debt at the end of the second quarter was $9.479 billion, down from $10.226 billion in the prior quarter.
Cash flow from operations was $779 million, up from $565 million in the previous quarter. Capital expenditures amounted to $83 million, leading to a non-GAAP free cash flow of $696 million.
During the quarter, NXPI paid dividends of $257 million and repurchased shares worth $204 million.
NXPI’s Q3 Guidance
For the third quarter of 2025, NXPI expects revenues in the range of $3.05-$3.25 billion. The Zacks Consensus Estimate for the same is pegged at $3.07 billion, indicating a year-over-year decline of 5.51%.
NXPI expects non-GAAP earnings per share in the band of $2.89-$3.30. The Zacks Consensus Estimate for the same is pegged at $3.02, indicating a year-over-year decline of 12.46%.
Zacks Rank and Stocks to Consider
Currently, NXPI carries a Zacks Rank #3 (Hold).
ACI Worldwide (ACIW - Free Report) , Adobe (ADBE - Free Report) and Applied Materials (AMAT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, ADBE and AMAT carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ACIW shares have lost 13.3% year to date. The Zacks Consensus Estimate for ACIW’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past seven days, implying growth of 7.58% from the year-ago quarter’s reported figure.
ADBE shares have lost 17.2% year to date. The Zacks Consensus Estimate for ADBE’s full-year fiscal 2025 earnings has been revised upward to $20.63 per share in the past 30 days, indicating year-over-year growth of 12%.
AMAT shares have gained 18.4% year to date. The Zacks Consensus Estimate for AMAT’s full-year 2025 earnings is pegged at $9.47 per share, up by a penny over the past 60 days, implying a rise of 9.48% from the year-ago quarter’s reported figure.