Highlights

  • NXP reports year-on-year quarterly revenue growth despite full-year revenue decline.
  • Automotive and Industrial segments show sequential and annual revenue expansion.
  • Capital returns and portfolio changes feature prominently in late-2025 activity.

NXP Semiconductors N.V. (NASDAQ:NXPI) reported financial results for the fourth quarter and full year ended December 31, 2025. Fourth-quarter revenue reached USD 3.34 billion, reflecting a 7 percent increase compared with the same period last year and a sequential rise from the previous quarter. Full-year revenue totaled USD 12.27 billion, representing a 3 percent decline on a year-on-year basis.

On a GAAP basis, fourth-quarter gross margin stood at 54.2 percent, while operating margin was reported at 22.3 percent. GAAP diluted earnings per share for the quarter were USD 1.79. For the full year, GAAP gross margin was 54.7 percent, operating margin reached 24.8 percent, and diluted earnings per share were USD 7.95.

Non-GAAP results showed fourth-quarter gross margin of 57.4 percent and operating margin of 34.6 percent, with diluted earnings per share of USD 3.35. Full-year non-GAAP diluted earnings per share were reported at USD 11.81.

Cash Flow and Capital Allocation
During the fourth quarter, cash flow from operations amounted to USD 891 million. After net capital expenditures of USD 98 million, non-GAAP free cash flow was USD 793 million, representing 23.8 percent of quarterly revenue. For the full year, operating cash flow reached USD 2.82 billion, with non-GAAP free cash flow totaling USD 2.43 billion.

Capital returns in the fourth quarter totaled USD 592 million, consisting of USD 338 million in share repurchases and USD 254 million in dividend payments. Full-year capital returns reached USD 1.92 billion. Additional share repurchases of USD 36 million were completed after year-end under a pre-arranged trading program.

Segment Performance
Automotive revenue for the fourth quarter was USD 1.88 billion, reflecting modest sequential and annual growth. Industrial and IoT revenue increased to USD 640 million, posting double-digit growth on both a quarter-on-quarter and year-on-year basis. Mobile revenue rose to USD 485 million, while Communication Infrastructure and Other declined year-on-year despite slight sequential growth.

Portfolio Actions and Balance Sheet Developments
During late 2025, NXP completed acquisitions of Aviva Links and Kinara for a combined cash consideration exceeding USD 500 million. The company also redeemed USD 500 million of senior unsecured notes in January 2026. In February 2026, NXP finalized the sale of its MEMS sensors business line for USD 900 million in cash, with additional contingent consideration tied to technical milestones.

Stock Performance
NXP Semiconductors shares closed at USD 231.08 on February 2, rising 2.18%.