NXP Semiconductors NV
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did NXPI Beat Earnings? Q2 2025 Results
NXP Semiconductors delivered a modest but clean beat in <a href="https://247wallst.com/investing/2025/07/21/live-coverage-nxp-semiconductors-nxpi-earnings-news-and-analysis/">its second-quarter results</a>, posting non-GAAP diluted EPS of $2.72 against a consensus estimate of $2.66, a 2.09% beat, while revenue of $2.93 billion edged past the $2.90 billion estimate by 0.97%, landing above the midpoint of its own guidance range. The headline numbers, however, still reflect the ongoing semiconductor cycle downturn, with revenue falling 6.4% year-over-year and non-GAAP gross margin compressing to 56.5% from 58.6% a year ago. The most important driver of sequential stability was the Automotive segment, which held essentially flat year-over-year at $1.73 billion and accounts for roughly 59% of total revenue, cushioning declines in Communications Infrastructure and Industrial end markets. All four segments came in above internal expectations, reinforcing management's view that a cyclical recovery is beginning to take hold. NXP guided Q3 revenue of $3.05 billion to $3.25 billion, implying roughly 8% sequential growth at the midpoint, though analysts noted that tariff uncertainty and macroeconomic headwinds continue to cloud the near-term outlook.
- All focus end-markets performed above expectations
- Emerging cyclical improvement in core end markets
- Company-specific growth drivers in automotive radar and SDV platforms
- Improved operating cash flow of $779 million, up from $565 million sequentially
- Reduced net capex of $83 million driving strong non-GAAP free cash flow of $696 million
“NXP delivered quarterly revenue of $2.93 billion, above the midpoint of our guidance, with all our focus end-markets performing above expectations. Our guidance for the third quarter reflects the combination of an emerging cyclical improvement in NXP's core end markets as well as the performance of our company specific growth drivers. We continue to drive solid profitability and earnings, by strengthening our competitive portfolio and by aligning our wafer fabrication footprint consistent with our hybrid manufacturing strategy.”
NXP Semiconductors CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, NXP guided total revenue of $3,050 million to $3,250 million (midpoint $3,150 million), representing approximately 8% sequential growth at midpoint and a year-over-year decline of about 3% at midpoint. GAAP gross margin is expected at 55.4%-56.5%, with non-GAAP gross margin of 56.5%-57.5%. Non-GAAP operating margin is guided at 32.7%-34.6%. Non-GAAP diluted EPS is expected at $2.89-$3.30, with midpoint of $3.10. GAAP diluted EPS is expected at $2.22-$2.62. The non-GAAP tax rate is expected at 17.0%-18.0%. Management cited an emerging cyclical improvement in NXP's core end markets and company-specific growth drivers as supporting the sequential acceleration.
NXPI YoY Financials
NXPI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.