NXP Semiconductors Q2 Earnings Beat Estimates, Revenues Fall Y/Y

NXP Semiconductors NXPI reported second-quarter 2025 non-GAAP earnings of $2.72 per share, beating the Zacks Consensus Estimate by 2.26%. The figure declined 15% year over year.NXP Semiconductors’ top line of $2.93 billion beat the Zacks Consensus Estimate of $2.90 billion by 0.9% and came above the midpoint of management’s guidance. The figure declined 6% year over year.NXPI stock declined 5.94% in the after-market trading hours on Monday.NXP Semiconductors N.V. Price, Consensus and EPS Surprise NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. QuoteNXPI’s Q2 2025 DetailsRevenues from Automotive (59.1% of total revenues) in the second quarter were $1.73 billion, up 0.1% year over year and 3% sequentially. Our model estimate for Automotive revenues was pegged at $1.6 billion, which indicated a 7.2% year-over-year decline.Second-quarter revenues from Mobile (11.3% of total revenues) were $331 million, down 4% year over year and 2% from the previous quarter. Our model estimate for Mobile revenues was pegged at $325.5 million, which indicated a 5.7% year-over-year decline.Revenues from Communication Infrastructure & Others (10.9% of total revenues) were $320 million, representing a 27% decline from the year-ago quarter and a 2% increase sequentially. Our model estimate for Communication Infrastructure & Others revenues was pegged at $397.2 million, which indicated a 9.3% year-over-year decline.Revenues from Industrial & IoT (18.7% of total revenues) were $546 million, down 11% from the year-ago quarter and up 7% sequentially. Our model estimate for Industrial & IoT revenues was pegged at $571.8 million, which indicated a 7.2% year-over-year decline.NXPI’s non-GAAP gross profit in the second quarter was $1.66 billion, down 10% year over year and up 4% sequentially. The non-GAAP gross margin contracted 210 basis points year over year to 56.5%.Non-GAAP operating income declined 13% year over year to $935 million, with the operating margin shrinking 230 basis points to 32% from the year-ago quarter.NXPI’s Balance Sheet & Cash FlowAs of June 29, 2025, NXPI’s cash and cash equivalents were $3.170 billion, down from $3.988 billion as of March 30, 2025.Long-term debt at the end of the second quarter was $9.479 billion, down from $10.226 billion in the prior quarter.Cash flow from operations was $779 million, up from $565 million in the previous quarter. Capital expenditures amounted to $83 million, leading to a non-GAAP free cash flow of $696 million.During the quarter, NXPI paid dividends of $257 million and repurchased shares worth $204 million.NXPI’s Q3 GuidanceFor the third quarter of 2025, NXPI expects revenues in the range of $3.05-$3.25 billion. The Zacks Consensus Estimate for the same is pegged at $3.07 billion, indicating a year-over-year decline of 5.51%.NXPI expects non-GAAP earnings per share in the band of $2.89-$3.30. The Zacks Consensus Estimate for the same is pegged at $3.02, indicating a year-over-year decline of 12.46%.Zacks Rank and Stocks to ConsiderCurrently, NXPI carries a Zacks Rank #3 (Hold).ACI Worldwide ACIW, Adobe ADBE and Applied Materials AMAT are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, ADBE and AMAT carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ACIW shares have lost 13.3% year to date. The Zacks Consensus Estimate for ACIW’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past seven days, implying growth of 7.58% from the year-ago quarter’s reported figure.ADBE shares have lost 17.2% year to date. The Zacks Consensus Estimate for ADBE’s full-year fiscal 2025 earnings has been revised upward to $20.63 per share in the past 30 days, indicating year-over-year growth of 12%.AMAT shares have gained 18.4% year to date. The Zacks Consensus Estimate for AMAT’s full-year 2025 earnings is pegged at $9.47 per share, up by a penny over the past 60 days, implying a rise of 9.48% from the year-ago quarter’s reported figure.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks