Live Coverage: NXP Semiconductors (NXPI) Earnings News and Analysis

NXPI | NXP Semiconductors Q2’25 Earnings Highlights:

• Adj. EPS: $2.72
• Revenue: $2.93B 
• Adj. Gross Margin: 56.5%; DOWN -210 bps YoY
• Net Income: $690M; DOWN -17% YoY

Q2’25 Outlook:

• Revenue: $3.05 billion to $3.25 billion
  • Guidance reflects an emerging cyclical improvement in core end markets and company-specific growth drivers.
  • Focus on solid profitability and earnings through portfolio strengthening and manufacturing strategy alignment.

Q2 Segment Performance:

• Automotive Revenue: $1.73B ; FLAT YoY
• Industrial & IoT Revenue: $546M ; DOWN -11% YoY
• Mobile Revenue: $331M ; DOWN -4% YoY
• Comm. Infra. & Other Revenue: $320M ; DOWN -27% YoY

Other Key Q2 Metrics:

• Adj. Operating Income: $935M; DOWN -13% YoY
• Adj. Operating Expenses: $505M ; DOWN -5% YoY
• R&D Expenses: $573M ; DOWN -4% YoY
• Free Cash Flow: $696M ; UP +21% YoY
• Effective Tax Rate: 18.3% (vs. N/A YoY)

CEO Commentary:

• Kurt Sievers: “NXP delivered solid revenue above guidance, focusing on profitability and growth drivers.”

Strategic Updates:

• NXP announced new imaging processors for Autonomous Driving and completed the acquisition of TTTech Auto.
• Collaboration with Rimac Technology for advanced automotive domain control.

We’ve been examining some of the industry-specific metrics like channel inventory and DSO, and there’s nothing obvious that looks out of sorts.

We continue to be surprised by the -5% reaction to the stock. These earnings weren’t outstanding, but they were good enough that a drop of this level doesn’t seem warranted.

Shares have rebounded slightly after trading down 6% after hours. As of 4:50 p.m. ET, they’re now trading down about 4.5%.

NXP Semiconductor beat earnings last quarter and issued guidance above expectations next quarter. So, why is the company’s stock down?

That’s the question we’re looking into right now.

The company has been broadly disappointing for investors. Shares are down 20% across the past year while AI takes off and the company – while beating expectations – still did just post a quarter with -6% revenue growth.

NXP sees 57% of revenue from the automotive end market. That’s the single market Taiwan Semiconductor (NYSE: TSM) called out as not growing in their recent conference call.

So, semiconductors do have powerful tailwinds, but NXP is in the worst segment of the industry right now. We’ll continue reviewing the earnings to look for more details into what disappointed Wall Street.

NXP’s guidance appears to be slightly above expectations for Q3.

The company issued an EPS range of $2.22 to $2.62, which is slightly above expectations of $2.42.

Revenue of $3.05 billion to $3.25 billion is above expectations of $3.08 billion at the midpoint.

• Revenue is down 6% from last year
• Adjusted EPS down 15%
• GAAP Net Income down 32%

Revenue of $2.93 billion is either inline or a slight beat depending on what consensus estimates you’re using (our data provider had the company at $2.86 billion in estimates).

EPS of $2.72 adjusted is also a beat.

We’ll get to more details in a moment but earnings are out and the immediate reaction is the stock is trading down 6%.

NXP Semiconductors earnings will be live momentarily and trading is closed for the day, up 1.05%, ending at $228.27 per share. Stay tuned for earnings analysis and news.