NXP Semiconductors Q3 Earnings Match Estimates, Revenues Fall Y/Y

Core Insights - NXP Semiconductors reported third-quarter 2025 non-GAAP earnings of $3.11 per share, matching the Zacks Consensus Estimate, but reflecting a 10% decline year over year [1] - The company's revenue for the quarter was $3.17 billion, exceeding the Zacks Consensus Estimate of $3.15 billion by 0.6%, although it declined 2% year over year [1] Revenue Breakdown - Automotive segment revenues, accounting for 57.9% of total revenues, were $1.84 billion, up 0.4% year over year and 6% sequentially, surpassing the model estimate of $1.82 billion [2] - Mobile segment revenues, making up 13.6% of total revenues, reached $430 million, a 6% increase year over year and 30% from the previous quarter, exceeding the model estimate of $402.7 million [3] - Communication Infrastructure & Others revenues, representing 10.3% of total revenues, were $327 million, showing a 27% decline year over year but a 2% increase sequentially, falling short of the model estimate of $411.8 million [4] - Industrial & IoT revenues, comprising 18.2% of total revenues, totaled $579 million, up 3% year over year and 6% sequentially, exceeding the model estimate of $512 million [5] Profitability Metrics - Non-GAAP gross profit for the third quarter was $1.81 billion, down 4% year over year but up 10% sequentially, with a non-GAAP gross margin of 57%, contracting 120 basis points year over year but improving 50 basis points sequentially [5] - Non-GAAP operating income declined 7% year over year to $1.07 billion, with the operating margin shrinking 170 basis points to 33.8%, although it increased 15% quarter over quarter [6] Balance Sheet & Cash Flow - As of September 28, 2025, NXP's cash and cash equivalents were $3.45 billion, up from $3.17 billion as of June 29, 2025, while long-term debt increased to $10.97 billion from $9.48 billion [7] - Cash flow from operations was $585 million, with capital expenditures of $76 million, resulting in a non-GAAP free cash flow of $509 million [7] - During the quarter, NXP paid dividends of $256 million and repurchased shares worth $54 million [7] Q4 Guidance - For the fourth quarter of 2025, NXP expects revenues in the range of $3.2 billion to $3.4 billion, with the Zacks Consensus Estimate at $3.21 billion, indicating a year-over-year increase of 3.1% [8][9] - The company anticipates non-GAAP earnings per share in the range of $3.07 to $3.49, with the Zacks Consensus Estimate at $3.23, suggesting a year-over-year increase of 1.6% [10]