NXP Semiconductors Reports Second Quarter 2025 Results

NXP Semiconductors N.V., a global leader in the semiconductor industry, has released its financial results for the second quarter of 2025, which ended on June 29, 2025. The company reported a quarterly revenue of $2.93 billion, surpassing the midpoint of its guidance. Despite a year-on-year revenue decline of 6%, the company demonstrated strong performance across all focus end-markets.

Financial Highlights

For the second quarter of 2025, NXP reported:

• Revenue of $2.93 billion, a 6% decrease year-on-year.
• GAAP gross margin of 53.4% and GAAP operating margin of 23.5%.
• GAAP diluted Net Income per Share of $1.75.
• Non-GAAP gross margin of 56.5% and non-GAAP operating margin of 32.0%.
• Non-GAAP diluted Net Income per Share of $2.72.
• Cash flow from operations of $779 million, with net capex investments of $83 million, resulting in non-GAAP free cash flow of $696 million.
• Capital return during the quarter was $461 million, representing 66% of second quarter non-GAAP free cash flow. Share buybacks were $204 million and dividends paid during the quarter were $257 million.

Business and Operational Highlights

Key business and operational developments during the quarter included:

• On May 8, 2025, NXP announced its third generation imaging processors for Level 2+ to Level 4 Autonomous Driving. The new S32R47 imaging radar processors in 16 nm FinFET technology deliver up to twice the processing power versus the previous generation.
• On June 12, 2025, NXP and Rimac Technology announced the co-development of a software-defined vehicle (SDV) architecture for advanced automotive domain and zonal control.
• On June 17, 2025, NXP completed the acquisition of TTTech Auto, a leader in innovating unique safety-critical systems and middleware for software-defined vehicles (SDVs).

Strategic Initiatives and Corporate Developments

During the second quarter, NXP continued to focus on strategic initiatives to enhance its market position and financial health:

• Capital return of $461 million, including $204 million in share buybacks and $257 million in dividends.
• Completion of the acquisition of TTTech Auto, enhancing NXP's capabilities in the automotive sector.

Management's Perspective

Kurt Sievers, NXP's Chief Executive Officer, commented on the results: "NXP delivered quarterly revenue of $2.93 billion, above the midpoint of our guidance, with all our focus end-markets performing above expectations. Our guidance for the third quarter reflects the combination of an emerging cyclical improvement in NXP's core end markets as well as the performance of our company-specific growth drivers. We continue to drive solid profitability and earnings by strengthening our competitive portfolio and aligning our wafer fabrication footprint consistent with our hybrid manufacturing strategy."

Future Outlook

For the third quarter of 2025, NXP provided the following guidance:

• Total revenue is expected to be in the range of $3.05 billion to $3.25 billion.
• GAAP gross margin is expected to be between 55.4% and 56.5%, while non-GAAP gross margin is expected to be between 56.5% and 57.5%.
• GAAP operating margin is expected to be between 26.8% and 29.0%, while non-GAAP operating margin is expected to be between 32.7% and 34.6%.
• GAAP diluted EPS is expected to be between $2.22 and $2.62, while non-GAAP diluted EPS is expected to be between $2.89 and $3.30.

SEC Filing: NXP Semiconductors N.V. [ NXPI ] - 8-K - Jul. 22, 2025