NXP(US:NXPI) Globenewswireยท2025-10-27 20:10Core Insights - NXP Semiconductors reported third-quarter revenue of $3.17 billion, surpassing the midpoint of its guidance, with broad-based sequential improvement across all regions and end markets, indicating a cyclical recovery [1][4]. Financial Performance - Total revenue for Q3 2025 was $3,173 million, an 8% increase quarter-on-quarter but a 2% decrease year-on-year [3][4]. - GAAP gross profit was $1,787 million, reflecting a 14% increase from Q2 2025 but a 4% decrease from Q3 2024 [3][4]. - Non-GAAP gross profit stood at $1,810 million, a 10% increase from Q2 2025 and a 4% decrease from Q3 2024 [3][4]. - GAAP operating income was $893 million, up 30% from Q2 2025 but down 10% from Q3 2024 [3][4]. - Non-GAAP operating income reached $1,071 million, a 15% increase from Q2 2025 but a 7% decrease from Q3 2024 [3][4]. - GAAP diluted net income per share was $2.48, a 42% increase from Q2 2025 but a 11% decrease from Q3 2024 [4][5]. - Non-GAAP diluted net income per share was $3.11, a 14% increase from Q2 2025 but a 10% decrease from Q3 2024 [4][5]. Cash Flow and Capital Return - Cash flow from operations was $585 million, with net capital expenditures of $76 million, resulting in non-GAAP free cash flow of $509 million [4]. - Capital return during the quarter was $310 million, representing 60.9% of third-quarter non-GAAP free cash flow, including $54 million in share buybacks and $256 million in dividends [4]. Strategic Developments - NXP announced the launch of a new 18-channel Li-ion battery cell controller IC family for electric vehicles and industrial energy storage systems [4]. - The company reached an agreement to sell its MEMS sensors business line for up to $950 million, with expected closing in the first half of 2026 [4]. - NXP completed the acquisition of Aviva Links for $243 million, enhancing its automotive networking solutions [4]. - The company received regulatory approvals for the acquisition of Kinara, a leader in energy-efficient neural processing units [4]. Guidance for Q4 2025 - NXP provided guidance for Q4 2025, projecting total revenue between $3,200 million and $3,400 million, with expected quarter-on-quarter growth of 1% to 7% and year-on-year growth of 3% to 9% [7].