It has been about a month since the last earnings report for NXP Semiconductors (NXPI Quick QuoteNXPI - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Well, first let's take a quick look at the 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 Q3 Earnings Match Estimates, Revenues Fall Y/Y

NXP Semiconductors 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.

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. NXPI expects non-GAAP earnings per share in the band of $3.07-$3.49.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

Currently, NXP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has 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 C. 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.