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TechnologyNXP Semiconductors
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XBRL · SEC EDGAR2011–2025(15yr)| Metric | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.2B | $4.4B | $4.8B | $5.6B | $6.1B | $9.5B | $9.3B | $9.4B | $8.9B | $8.6B | $11.1B | $13.2B | $13.3B | $12.6B | $12.3B | -2.7% |
| Gross Profit | $1.9B | $2.0B | $2.2B | $2.6B | $2.8B | $4.1B | $4.6B | $4.9B | $4.6B | $4.2B | $6.1B | $7.5B | $7.6B | $7.1B | $6.7B | -5.7% |
| Gross Margin | 45.4% | 45.6% | 45.2% | 46.8% | 45.7% | 42.8% | 49.9% | 51.6% | 52.0% | 49.2% | 54.8% | 56.9% | 56.9% | 56.4% | 54.7% | -1.7pp |
| Operating Income | $357.0M | $412.0M | $651.0M | $1.0B | $2.0B | -$150.0M | $2.1B | $2.7B | $641.0M | $418.0M | $2.6B | $3.8B | $3.7B | $3.4B | $3.0B | -10.8% |
| Operating Margin | 8.5% | 9.5% | 13.5% | 18.6% | 33.0% | -1.6% | 22.7% | 28.8% | 7.2% | 4.9% | 23.3% | 28.8% | 27.6% | 27.1% | 24.8% | -2.3pp |
| Net Income | $390.0M | -$115.0M | $348.0M | $539.0M | $1.5B | $200.0M | $2.2B | $2.2B | $243.0M | $52.0M | $1.9B | $2.8B | $2.8B | $2.5B | $2.0B | -19.5% |
| Net Margin | 9.3% | -2.6% | 7.2% | 9.5% | 25.0% | 2.1% | 23.9% | 23.5% | 2.7% | 0.6% | 16.9% | 21.1% | 21.1% | 19.9% | 16.5% | -3.4pp |
| Free Cash Flow | — | — | — | — | — | $1.9B | $1.9B | $3.8B | $1.8B | $2.1B | $2.3B | $2.8B | $2.7B | $2.1B | $2.4B | +17.9% |
| FCF Margin | — | — | — | — | — | 20.2% | 20.5% | 39.9% | 20.8% | 24.3% | 20.9% | 21.4% | 20.2% | 16.3% | 19.7% | +3.5pp |
| EPS (Diluted) | $1.57 | $-0.46 | $1.36 | $2.17 | $6.10 | $0.58 | $6.41 | $6.72 | $0.85 | $0.18 | $6.79 | $10.55 | $10.70 | $9.73 | $7.95 | -18.3% |
1. THE BIG PICTURE
NXP Semiconductors is transitioning from a broad-based chipmaker to a specialized leader in "High Performance Mixed Signal" solutions for the automotive and industrial sectors, where high switching costs and multi-year qualification cycles provide a structural buffer. While NXP Semiconductors is currently enduring a revenue dip—down 7.7% in the most recent quarter—its ability to maintain a 27.0% operating margin during a downturn suggests a disciplined cost structure and significant pricing power in its core niches (6-K, XBRL).
2. WHERE THE RISKS HIT HARDEST
NXP Semiconductors’ "Market Positioning" in secure connected devices and automotive systems is directly threatened by "Geopolitical Trade Barriers" because of its heavy reliance on the Greater China region for end-customer demand (20-F Item 4, 6-K). Management specifically attributed recent revenue declines to lower sales in China, proving that geopolitical friction is not a theoretical risk but a current drag on the top line. Furthermore, NXP Semiconductors’s "Technical Expertise" in ADAS and V2X is threatened by "Capital and Liquidity Management" risks; with $9.5 billion in net debt and a 4.3x net leverage ratio, any inability to refinance debt could starve the R&DR&DResearch & Development — spending on creating new products or technologies budgets required to keep pace with competitors like Analog Devices and Infineon (XBRL, RISKS).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is outperforming on internal efficiency while lagging significantly on growth. NXP Semiconductors ranks last among its peers in revenue growth at -2.7%, yet it maintains the second-highest operating margin in the group at 27.0% (XBRL). This divergence indicates that NXP Semiconductors is successfully defending its profitability through "ongoing cost control" and lower R&DR&DResearch & Development — spending on creating new products or technologies expenditures even as market demand softens (6-K).
The current trajectory shows a significant divergence from peers: while Analog Devices and Texas Instruments grew revenue by 16.9% and 13.0% respectively, NXP Semiconductors contracted. This is largely explained by NXP Semiconductors's specific exposure to the Chinese distribution channel and its recent reporting reorganization, which moved certain income streams out of the revenue line (6-K). Sentiment remains cautious, evidenced by a short interest of 4.4% of the float, as investors wait for a bottoming of the China demand cycle.
4. IS IT WORTH IT AT THIS PRICE?
At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 12.1x, NXP Semiconductors trades at a 51% discount to the peer median of 25.0x. This qualifies as attractively valued, as the steep discount appears to over-penalize NXP Semiconductors for a cyclical slowdown in China while ignoring its 55.6% gross margins and leadership in automotive-grade secure connectivity (XBRL).
At the current price, the market is pricing in ~4.2% long-term growth (CAPM analysis). This is a low bar for a company with 9,000 patent families and a dominant position in the "stringent qualification" automotive market (10-K Item 4). If growth eventually mean-reverts to just 2.5% (GDP pace), the sensitivity analysis suggests a justified multiple of 10.1x, implying roughly 17% downside. However, the current 12.1x multiple is nearly in line with the market-implied fair value of 11.9x for a 4.0% growth scenario, suggesting the stock is accurately priced for a modest recovery.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if quarterly revenue in the Greater China region stabilizes or returns to growth, signaling that the primary macro drag has cleared (6-K).
- Cautious if the FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (currently 18.2%) continues to trail peers like Analog Devices (36.5%), which would limit NXP Semiconductors’ ability to aggressively pay down its $9.5 billion net debt (XBRL).
- Cautious if the buyback yield (1.7%) is suspended to preserve cash, as this yield currently provides a key floor for total shareholder returns (XBRL).
6. BOTTOM LINE
Structural Advantage: Deeply embedded intellectual property and high switching costs within automotive-grade secure connectivity and V2X systems.
Bottom Line: NXP Semiconductors is a high-margin industry stalwart currently priced as a laggard, offering an attractive entry point for investors who believe its China-driven sales slump is cyclical rather than structural.
Top 5 Material Risks
- Market and Industry Conditions: NXP Semiconductors faces risks related to general semiconductor industry conditions and shifting market demand.
- New Technology Adoption: The financial performance of NXP Semiconductors depends on its ability to successfully introduce new technologies and products.
- End-Market Demand: NXP Semiconductors is exposed to fluctuations in the demand for the goods into which its products are incorporated.
- Geopolitical Trade Barriers: Trade disputes between the United States and China, along with potential increases in international trade barriers, threaten to disrupt established supply chains.
- Capital and Liquidity Management: NXP Semiconductors must generate sufficient cash, raise capital, or refinance debt at or before maturity to meet debt service, research and development, and capital investment requirements.
Company-Specific Risks
- Production Capacity Matching: NXP Semiconductors faces the risk of failing to accurately estimate demand, which could lead to a mismatch between production capacity and actual market needs.
- Third-Party Dependency: NXP Semiconductors relies on third-party outsourcing partners and suppliers for equipment and materials, making the business vulnerable to events affecting those partners or the relationships with them.
- Operational Integrity: NXP Semiconductors must avoid operational problems and product defects, as the need to rectify such issues could impact performance.
- Strategic Alliances: The success of NXP Semiconductors is tied to its ability to form and maintain strategic partnerships and joint ventures with alliance partners.
Financial Impact Map
Market Demand and Industry Conditions → Revenue → Fluctuations in industry conditions directly impact top-line performance. Trade Disputes (U.S. and China) → Cost of Goods Sold / Supply Chain Costs → Disruptions to established supply chains threaten to increase operational costs. Debt Refinancing and Capital Access → Interest Expense / Cash Flow → Inability to refinance debt at maturity threatens the ability to meet debt service obligations and fund capital investments. Product Defects and Operational Issues → Operating Expenses → The need to rectify product defects or operational failures would necessitate unplanned expenditures. Competitive Bid Selection → Revenue → Failure to win competitive bid processes directly impacts the ability to secure future revenue streams.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 6-K | Apr 2019 | — |
| 20-F | Mar 2019 | Dec 2018 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
NXP Q4 revenue $3.34B +7% YoY, EPS $3.35; partners with Nvidia on robotics
- ▸Q4 revenue $3.34B, up 7% YoY
- ▸Q4 non-GAAP diluted EPS $3.35
- ▸FY2025 revenue $12.27B, down 3% YoY
- ▸Q4 non-GAAP free cash flow $793M
- ▸Collaborating with Nvidia on Holoscan Sensor Bridge and SoC robotics solutions
NXP Q4 revenue $3.34B +7.2% YoY, beats analyst estimates by 0.7%
- ▸NXP Q4 revenue $3.34B, +7.2% YoY, beat estimates by 0.7%
- ▸Skyworks Q4 revenue $1.04B, -3.1% YoY, beat estimates by 3.4%
- ▸Vishay Intertechnology Q4 revenue $800.9M, +12.1% YoY, beat estimates by 0.7%
- ▸Analog semiconductor group Q4 revenue beat consensus estimates by 0.7%
- ▸Analog semiconductor stocks down 7.8% on average since Q4 earnings reports
NXP Semiconductors declares $1.014 per share Q1 dividend payable April 9
- ▸Declared Q1 dividend of $1.014 per share
- ▸Dividend payable April 9, 2026, to shareholders of record March 25, 2026
- ▸Consensus analyst price target of $260 implies 30% upside
- ▸Approximately 90% of analysts maintain bullish rating on stock
- ▸Growth driven by strong performance in Mobile and Communication Infrastructure segments
NXP Semiconductors declares $1.014 per share quarterly dividend payable April 9
- ▸Q1 2026 interim dividend of $1.014 per ordinary share approved
- ▸Payment date scheduled for April 9, 2026
- ▸Record date for dividend eligibility is March 25, 2026
- ▸Cash dividends subject to 15% Dutch dividend withholding tax
- ▸Part of ongoing capital return program citing strong cash flow