A month has gone by since the last earnings report for NXP Semiconductors (NXPI Quick QuoteNXPI - Free Report) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is NXP due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for NXP Semiconductors N.V. before we dive into how investors and analysts have reacted as of late.

NXP Semiconductors Q2 Earnings Beat Estimates, Revenues Fall Y/Y

NXP Semiconductors 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’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. NXPI expects non-GAAP earnings per share in the band of $2.89-$3.30.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, NXP has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, NXP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.