NXP(US:NXPI)2026-02-03 11:05Financial Performance - Fourth quarter revenue was $3.34 billion, up 7% year-on-year, while full-year revenue was $12.27 billion, down 3% year-on-year[2] - Fourth quarter GAAP gross margin was 54.2%, with a GAAP operating margin of 22.3% and GAAP diluted net income per share of $1.79; full-year GAAP gross margin was 54.7%[2] - Fourth quarter non-GAAP gross margin was 57.4%, with a non-GAAP operating margin of 34.6% and non-GAAP diluted net income per share of $3.35; full-year non-GAAP gross margin was 56.8%[2] - NXP Semiconductors reported revenue of $12.27 billion for the full year 2025, a decrease from $12.61 billion in 2024, representing a decline of approximately 2.7%[16] - The gross profit for Q4 2025 was $1.807 billion, compared to $1.678 billion in Q4 2024, reflecting an increase of 7.7% year-over-year[20] - Operating income for Q4 2025 was $744 million, down from $893 million in Q3 2025, indicating a decrease of 16.7%[20] - Net income attributable to stockholders for Q4 2025 was $455 million, compared to $631 million in Q3 2025, a decline of 28%[20] - NXP's GAAP net income for Q4 2025 was $468 million, a decrease of 27.6% from $646 million in Q3 2025 and a decrease of 7.4% from $505 million in Q4 2024[22] - The diluted GAAP net income per share attributable to stockholders for Q4 2025 was $1.79, a decrease from $2.48 in Q3 2025 and $1.93 in Q4 2024[24] Cash Flow and Capital Management - Cash flow from operations for the fourth quarter was $891 million, resulting in non-GAAP free cash flow of $793 million, or 23.8% of revenue; full-year cash flow from operations was $2.82 billion[2] - Capital return during the fourth quarter was $592 million, representing 74.7% of non-GAAP free cash flow, with share buybacks totaling $338 million[2] - Cash flows from operating activities for the full year 2025 were $2,820 million, slightly up from $2,782 million in 2024[22] - Non-GAAP free cash flow for Q4 2025 was $793 million, an increase from $509 million in Q3 2025 and $292 million in Q4 2024, representing 20% of revenue[30] - Total net cash provided by operating activities for Q4 2025 was $891 million, up from $585 million in Q3 2025 and $391 million in Q4 2024[30] - Cash and cash equivalents as of December 31, 2025, were $3.267 billion, down from $3.454 billion as of September 28, 2025[21] - NXP's total cash and cash equivalents at the end of Q4 2025 were $3,267 million, down from $3,454 million at the end of Q3 2025[22] Strategic Initiatives and Acquisitions - NXP announced the completion of the acquisitions of Aviva Links for $243 million and Kinara for $307 million in cash[2] - The company completed the sale of its MEMS sensors business line for $900 million in cash, with an additional contingent payment of up to $50 million[2] - NXP's strategic focus includes advancements in software-defined vehicles and physical AI, alongside disciplined investment and margin expansion[1] - The company emphasizes its commitment to innovation in automotive, industrial, IoT, mobile, and communications infrastructure markets[16] Future Guidance - The company expects first quarter 2026 total revenue guidance between $3.05 billion and $3.25 billion, reflecting a quarter-on-quarter decline of 3% to 9%[6] - NXP's guidance for first quarter 2026 includes a gross margin expectation of 55.2% to 56.3%[6] Research and Development - Research and development expenses for the full year 2025 totaled $2.36 billion, slightly up from $2.35 billion in 2024, marking an increase of 0.6%[20] - The company plans to continue investing in research and development, with GAAP R&D expenses of $665 million in Q4 2025, up from $575 million in Q3 2025[23] Risks and Challenges - NXP's forward-looking statements highlight potential risks including market demand fluctuations and global trade policy changes, which could impact future performance[17]