Revenue: $3.17 billion vs analyst estimates of $3.16 billion (2.4% year-on-year decline, in line)<\/p>\n
Adjusted EPS: $3.11 vs analyst estimates of $3.12 (in line)<\/p>\n
Adjusted EBITDA: $1.09 billion vs analyst estimates of $1.24 billion (34.4% margin, 11.7% miss)<\/p>\n
Revenue Guidance for Q4 CY2025 is $3.3 billion at the midpoint, above analyst estimates of $3.24 billion<\/p>\n
Adjusted EPS guidance for Q4 CY2025 is $3.28 at the midpoint, roughly in line with what analysts were expecting<\/p>\n
Operating Margin: 28.1%, down from 30.5% in the same quarter last year<\/p>\n
Inventory Days Outstanding: 161, down from 165 in the previous quarter<\/p>\n
Market Capitalization: $55.25 billion<\/p>\n
EINDHOVEN, The Netherlands, Oct. 27, 2025 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the third quarter, which ended September 28, 2025. \u201cNXP 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,\u201d said Rafael Sotomayor, NXP President and incoming Chief Executive Officer.<\/p>\n
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.<\/p>\n
A company\u2019s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, NXP Semiconductors\u2019s 7.5% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.<\/p>\n
Story Continues <\/p>\n
NXP Semiconductors Quarterly Revenue <\/p>\n
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. NXP Semiconductors\u2019s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 4.4% over the last two years.<\/p>\n
NXP Semiconductors Year-On-Year Revenue Growth <\/p>\n
This quarter, NXP Semiconductors reported a rather uninspiring 2.4% year-on-year revenue decline to $3.17 billion of revenue, in line with Wall Street\u2019s estimates. Despite meeting estimates, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 6.1% year-on-year increase in sales next quarter.<\/p>\n
Looking further ahead, sell-side analysts expect revenue to grow 8.4% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.<\/p>\n
Unless you\u2019ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories<\/a>.<\/p>\n Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business\u2019 capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.<\/p>\n This quarter, NXP Semiconductors\u2019s DIO came in at 161, which is 40 days above its five-year average. These numbers suggest that despite the recent decrease, the company\u2019s inventory levels are higher than what we\u2019ve seen in the past.<\/p>\n It was encouraging to see NXP Semiconductors\u2019s revenue guidance for next quarter beat analysts\u2019 expectations. We were also glad its inventory levels shrunk. On the other hand, its revenue and EPS were just in line. Zooming out, we still think this was a solid quarter given encouraging the outlook. The stock traded up 2.4% to $227 immediately following the results.<\/p>\n NXP Semiconductors Inventory Days Outstanding <\/p>\n