NXP Semiconductors N.V. reported fourth quarter revenue of $3.34 billion, surpassing the midpoint of guidance and reflecting sequential improvement across all end markets. Management cited disciplined execution through a challenging first half of 2025 and continued progress on strategic priorities in software-defined vehicles and physical AI.

Quarter and full-year highlights:

  • Q4 revenue: $3.34 billion, up 7% year over year. Full-year revenue: $12.27 billion, down 3% year over year.
  • Q4 GAAP metrics: gross margin 54.2%, operating margin 22.3%, diluted EPS $1.79. FY25 GAAP: gross margin 54.7%, operating margin 24.8%, diluted EPS $7.95.
  • Q4 non-GAAP metrics: gross margin 57.4%, operating margin 34.6%, diluted EPS $3.35. FY25 non-GAAP: gross margin 56.8%, operating margin 33.1%, diluted EPS $11.81.
  • Cash generation: Q4 cash flow from operations $891 million; net capex $98 million; non-GAAP free cash flow $793 million (23.8% of revenue). FY25 cash flow from operations $2.82 billion; net capex $395 million; non-GAAP free cash flow $2.425 billion (19.8% of revenue).
  • Capital return: Q4 total $592 million (share repurchases $338 million; dividends $254 million), equal to 74.7% of Q4 non-GAAP free cash flow. FY25 capital return $1.924 billion (79.3%). Post-quarter, additional $36 million of repurchases were executed under a 10b5-1 program.

Operational and portfolio updates:

  • Announced Trimension SR150 UWB enabling precise location for Jedsy X medical delivery drones (Oct 7, 2025).
  • Introduced i.MX 952 applications processor leveraging the integrated eIQ Neutron NPU for AI-driven vision, HMI and in-cabin sensing (Oct 21, 2025).
  • Completed acquisitions of Aviva Links ($243 million) and Kinara ($307 million) to strengthen edge intelligence (Oct 24 and Oct 27, 2025).
  • Redeemed $500 million of 5.350% senior unsecured notes due March 1, 2026 (Jan 5, 2026).
  • Completed sale of the MEMS sensors business line for $900 million in cash plus up to $50 million in contingent consideration (Feb 2, 2026).

“NXP delivered quarterly revenue of $3.34 billion, surpassing the midpoint of our guidance and reflecting sequential improvement across all end markets,” said Rafael Sotomayor, President and Chief Executive Officer. “These actions, combined with an improving demand environment, position NXP for profitable revenue growth. We remain committed to disciplined investment, margin expansion and portfolio optimization to drive sustainable, long-term value for our shareholders.”

Original – NXP Semiconductors