NXP Semiconductors' Q4 Earnings and Revenues Beat Estimates

Core Insights - NXP Semiconductors (NXPI) reported strong fourth-quarter results for 2025, exceeding expectations with year-over-year improvements in both revenue and earnings [1][9] Financial Performance - Non-GAAP earnings per share (EPS) for Q4 were $3.35, surpassing the Zacks Consensus Estimate by 1.41% and reflecting a 5% increase year over year [1][9] - Total revenue for Q4 was $3.34 billion, beating the Zacks Consensus Estimate of $3.30 billion and rising 7% year over year [2] Segment Performance - Automotive segment revenues, accounting for 56.3% of total revenues, reached $1.88 billion, up 5% year over year and 2% sequentially [3] - Industrial & IoT revenues, making up 19.2% of total revenues, were $640 million, a 24% increase from the previous year and an 11% sequential rise [3] - Mobile segment revenues, which comprised 14.5% of total revenues, totaled $485 million, reflecting a 22% year-over-year increase and a 13% sequential increase [4] - Communication Infrastructure & Others revenues, representing 10% of total revenues, were $334 million, showing an 18% decline year over year but a 2% sequential increase [4] Profitability Metrics - Non-GAAP gross profit for Q4 was $1.91 billion, up 7% year over year and 6% sequentially, with a non-GAAP gross margin of 57.4%, which contracted by 10 basis points year over year but improved by 40 basis points sequentially [5] - Non-GAAP operating income increased 8% year over year and sequentially to $1.15 billion, with a non-GAAP operating margin expanding by 40 basis points year over year and 80 basis points sequentially to 34.6% [5] Balance Sheet & Cash Flow - As of December 31, 2025, cash and cash equivalents were $3.27 billion, down from $3.45 billion as of September 28, 2025 [6] - Long-term debt remained unchanged at $10.97 billion [6] - Operating cash flow for Q4 was $891 million, and free cash flow was $793 million, with full-year 2025 figures at $2.82 billion and $2.43 billion, respectively [6] Shareholder Returns - In Q4, NXP paid dividends of $254 million and repurchased shares worth $338 million, with total dividends for 2025 amounting to $1.03 billion and share repurchases totaling $899 million [7] Guidance - For Q1 2026, NXP expects revenues between $3.05 billion and $3.25 billion, with a Zacks Consensus Estimate of $3.09 billion, indicating a year-over-year increase of 9.1% [8] - Non-GAAP EPS guidance for Q1 2026 is projected between $2.77 and $3.17, with the Zacks Consensus Estimate at $2.99, suggesting a year-over-year jump of 13.3% [8]