It has been about a month since the last earnings report for NXP Semiconductors (NXPI). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.<\/p>\n
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? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important drivers.<\/p>\n
NXP Semiconductors ended 2025 on a strong note, reporting better-than-expected results for the fourth quarter. The top and bottom lines marked a year-over-year improvement as well.<\/p>\n
NXP Semiconductors reported non-GAAP earnings of $3.35 per share, surpassing the Zacks Consensus Estimate by 1.41%. The figure increased 5% year over year.<\/p>\n
NXP Semiconductors\u2019 top line of $3.34 billion beat the Zacks Consensus Estimate of $3.30 billion and came above the midpoint of management\u2019s guidance range of $3.2-$3.4 billion. The figure rose 7% year over year.<\/p>\n
Revenues from Automotive (56.3% of total revenues) in the fourth quarter were $1.88 billion, up 5% year over year and 2% sequentially. Revenues from Industrial & IoT (19.2% of total revenues) were $640 million, up 24% from the year-ago quarter and up 11% sequentially.<\/p>\n
Fourth-quarter revenues from Mobile (14.5% of total revenues) were $485 million, up 22% year over year and 13% from the previous quarter. Revenues from Communication Infrastructure & Others (10% of total revenues) were $334 million, representing a 18% decline from the year-ago quarter and a 2% increase sequentially.<\/p>\n
NXP Semiconductors\u2019 non-GAAP gross profit in the fourth quarter was $1.91 billion, up 7% year over year and 6% sequentially. The non-GAAP gross margin of 57.4% contracted 10 basis points year over year but improved 40 basis points sequentially.<\/p>\n
Non-GAAP operating income increased 8% year over year and sequentially to $1.15 billion. The non-GAAP operating margin expanded 40 basis points year over year and 80 basis points sequentially to 34.6%.<\/p>\n
As of Dec. 31, 2025, NXPI\u2019s cash and cash equivalents were $3.27 billion, up from $3.45 billion as of Sept. 28, 2025.<\/p>\n
Long-term debt at the end of the fourth quarter was $10.97 billion, unchanged from the previous quarter.<\/p>\n
NXP Semiconductors generated operating cash flow of $891 million and free cash flow of $793 million in the fourth quarter. During full-year 2025, it generated operating cash flow and free cash flow of $2.82 billion and $2.43 billion, respectively.<\/p>\n
During the quarter, NXPI paid dividends of $254 million and repurchased shares worth $338 million. In 2025, it paid dividends of $1.03 billion and repurchased shares worth $899 million.<\/p>\n
For the first quarter of 2026, NXP Semiconductors expects revenues in the range of $3.05-$3.25 billion. NXPI expects non-GAAP earnings per share in the band of $2.77-$3.17.<\/p>\n
In the past month, investors have witnessed a flat trend in estimates review.<\/p>\n
At this time, 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.<\/p>\n
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.<\/p>\n
NXP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n