Live Earnings: Will NXP Semiconductor Soar After Q3 Results

NXP’s conference call will be held tomorrow morning at 8 a.m. ET. Without more news, we’ll slow updates of this blog.

You can register for NXP’s call here.

Shares are now up 2.74% for the reasons we started earlier: performance last quarter was slightly above expectations and guidance (especially operating profits) is above Wall Street.

As of 4:26 p.m. ET, NXP shares are up 1.55%. Here’s why investors are liking earnings:

• EPS largely met Wall Street estimates while revenue for last quarter slightly exceeded it.
• Guidance for next quarter was strong with operating profit above Wall Street’s estimates.

Here’s a more detailed summary of what NXP delivered in Q3:

NXPI | NXP Semiconductors Q3’25 Earnings Highlights:

• Adj. EPS: $3.11 [✅]; [DOWN] -10% YoY
• Revenue: $3.17B [✅]; [DOWN] -2% YoY
• Adj. Gross Margin: 57.0% [✅]; [DOWN] -12 bps YoY
• Net Income: $0.63B [✅]; [DOWN] -12% YoY
• Free Cash Flow: $0.51B; [DOWN] -14% YoY

Q4’25 Outlook:

• Revenue: $3.20B – $3.40B [➖]
  • Guidance reflects a sequential increase of 1% to 7% and a year-over-year increase of 3% to 9%.
  • Factors influencing the outlook include broad-based sequential improvement across all regions and end markets, alongside company-specific growth drivers.

Q3 Segment Performance:

• Automotive Revenue: $1.84B [✅]; [UP] +0% YoY
• Industrial & IoT Revenue: $0.58B [✅]; [UP] +3% YoY
• Mobile Revenue: $0.43B [✅]; [UP] +6% YoY
• Comm. Infra. & Other Revenue: $0.33B [✅]; [DOWN] -27% YoY

Other Key Q3 Metrics:

• Adj. Operating Income: $1.07B [✅]; [DOWN] -7% YoY
• Adj. Operating Expenses: $0.89B [➖]; [UP] +2% YoY
• R&D Expenses: $0.58B [➖]; [DOWN] -3% YoY
• Effective Tax Rate: 17.5% (vs. 23.5% YoY)
• Cash and Cash Equivalents: $3.45B
• Dividends Paid: $0.26B
• Share Buybacks: $0.05B

CEO Commentary:

• Rafael Sotomayor: “NXP reported quarterly revenue of $3.17 billion, exceeding the midpoint of our guidance. We experienced broad-based sequential improvement across all regions and end markets. Our outlook reflects the strength of our company specific growth drivers and signs of a cyclical recovery. We remain focused on disciplined investment and portfolio enhancement to drive profitable growth, while maintaining control over the factors we can influence.”

Next quarter NXP is projecting operating margins of $1.08 billion to $1.21 billion. At the midpoint, that’s above estimates of $1.11 billion. Revenue of $3.3 billion at the midpoint also tops estimates. It appears guidance is carrying the after hours reactions to the stock.

Its after 4:10 p.m. ET – so earnings are out.

Adjsuted EPS of $3.11 largely matches Wall Street expectations. Revenue of $3.17 billion slightly tops.

The initial reaction from Wall Street is positive, shares are up 1.5%.

Earnigns are due in about 2 to 3 minutes – as a reminder if you’re seeing this update new ones will post automatically – do not leave this page if you want full analysis of NXP’s earnings.

It’s been a relatively disappointing 2025 for NXP. On the ‘plus side,’ the stock is up 7% in 2025. Investors who have been holding the stock throughout the year have made money.

And yet, the iShares Semiconductor ETF (Nasdaq: SOXX) is up a red-hot 40% year-to-date. That means NXP is badly trailing its peers.

One area of concern: Texas Instruments (Nasdaq: TXN) is one of NXP’s closest peers and disappointed when they reported earnings last week. While the semiconductor industry is booming, end markets like automated factories and the automotive sector have lagged in recent years.

We’ll issue our complete analysis when NXP’s earnings hit the newswires. All you have to do is keep this live blog open and new updates will post automatically. We expect the company to report at about 4:10 p.m. ET.