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NXP Semiconductors Q1 Earnings Beat Estimates, Revenues Fall Y/Y

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NXP Semiconductors (NXPI - Free Report) reported first-quarter 2025 non-GAAP earnings of $2.64 per share, beating the Zacks Consensus Estimate by 1.93%. The figure declined 17% year over year.

NXP Semiconductors’ top line of $2.84 billion beat the Zacks Consensus Estimate of $2.83 billion by 0.3% and came above the midpoint of management’s guidance. The figure declined 9.3% year over year.

NXPI stock declined 8.5% in the pre-market trading hours of Tuesday.

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote

NXPI’s Q1 2025 Details

Revenues from Automotive (59.0% of total revenues) in the first quarter were $1.67 billion, down 7.2% year over year and 6.5% sequentially.

First-quarter revenues from Mobile (11.9% of total revenues) were $338 million, down 3.2% year over year and 14.6% from the previous quarter.

Revenues from Communication Infrastructure & Others (11.1% of total revenues) were $315 million, representing a 21% decline from the year-ago quarter and a 23% drop sequentially.

Revenues from Industrial & IoT (17.9% of total revenues) were $508 million, down 11% from the year-ago quarter and 2% sequentially.

NXPI’s non-GAAP gross profit in the first quarter was $1.59 billion, down 12.5% year over year and 11% sequentially. The non-GAAP gross margin contracted 210 basis points year over year to 56.1%.

Non-GAAP operating income declined 16.3% year over year to $904 million, with the operating margin shrinking 260 basis points to 31.9% from the year-ago quarter.

NXPI’s Balance Sheet & Cash Flow

As of March 30, 2025, NXPI’s cash and cash equivalents were $3.988 billion, up from $3.292 billion as of December 31, 2024.

Long-term debt at the end of the first quarter was $10.226 billion, slightly down from $10.354 billion in the prior quarter.

Cash flow from operations was $565 million, up from $391 million in the previous quarter. Capital expenditures amounted to $139 million, leading to a non-GAAP free cash flow of $427 million.

During the quarter, NXPI paid dividends of $258 million and repurchased shares worth $303 million. Post-quarter, it repurchased an additional $90 million in shares via a 10b5-1 program.

NXPI’s Q2 Guidance

For the second quarter of 2025, NXPI expects revenues in the range of $2.8–$3 billion. The Zacks Consensus Estimate for the same has been pegged at $2.83 billion, indicating a year-over-year decline of 9.58%.

NXPI expects non-GAAP earnings per share in the band of $2.46–$2.86. The Zacks Consensus Estimate for the same has been pegged at $2.59, indicating a year-over-year decline of 20%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Zacks Rank and Other Stocks to Consider

Currently, NXPI carries a Zacks Rank #2 (Buy).

Affirm (AFRM - Free Report) , Super Micro Computer (SMCI - Free Report) and Paycom Software (PAYC - Free Report) are some top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, SMCI and ACMR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM shares have gained 4% for the past year. The Zacks Consensus Estimate for AFRM’s full-year 2025 earnings is pegged at a loss of 6 cents per share, up by 7 cents over the past 60 days, suggesting a growth of 96.7% from the year-ago quarter’s reported figure.

SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s full-year fiscal 2025 earnings have been revised downward to $2.52 in the past seven days reflecting a year-over-year growth of 14%.

PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s full-year 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.


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