Key Highlights for the Fourth Quarter and Full-year 2025:
Fourth quarter revenue was $3.34 billion, up 7 percent year-on-year. Full-year revenue was $12.27 billion, down 3 percent year-on-year;
Fourth quarter GAAP gross margin was 54.2 percent, GAAP operating margin was 22.3 percent and GAAP diluted Net Income per Share was $1.79. Full year GAAP gross margin was 54.7 percent, GAAP operating margin was 24.8 percent and GAAP diluted Net Income per Share was $7.95;
Fourth quarter Non-GAAP gross margin was 57.4 percent, non-GAAP operating margin was 34.6 percent, and non-GAAP diluted Net Income per Share was $3.35. Full-year Non-GAAP gross margin was 56.8 percent, non-GAAP operating margin was 33.1 percent, and non-GAAP diluted Net Income per Share was $11.81;
Fourth quarter cash flow from operations was $891 million, with net capex investments of $98 million, resulting in non-GAAP free cash flow of $793 million or 23.8 percent of revenue. Full-year cash flow from operations was $2,820 million, with net capex investments of $395 million, resulting in non-GAAP free cash flow of $2,425 million or 19.8 percent of revenue;
Capital return during the quarter was $592 million, representing 74.7 percent of fourth quarter non-GAAP free cash flow. Share buybacks were $338 million and dividends paid during the quarter were $254 million. Full year capital return was $1.924 billion in 2025, representing 79.3 percent. After the end of the fourth quarter, between December 31, 2025, and January 30, 2026, NXP executed via a 10b5-1 program additional share repurchases totaling $36 million;
On October 7, 2025, NXP announced that its Trimension SR150 Ultra-Wideband (UWB) product enables Jedsy X medical delivery drones to detect the drone's precise location;
On October 21, 2025, NXP announced the i.MX 952 applications processor targeting AI-powered vision, human-machine interfaces (HMIs) and in-cabin sensing applications, leveraging sensor fusion powered by the integrated eIQ® Neutron Neural Processing Unit (NPU) to deliver driver monitoring, child presence detection and more;
On October 28, 2025, NXP announced the completion of the previously announced acquisitions of Aviva Links and Kinara. NXP closed the acquisition of Aviva Links for $243 million in cash before closing adjustments on October 24, 2025. NXP closed the acquisition of Kinara for $307 million in cash before closing adjustments on October 27, 2025;
On January 5, 2026, NXP redeemed the $500 million aggregate principal amount of outstanding dollar-denominated 5.350% senior unsecured notes due March 1, 2026; and
On February 2, 2026, NXP completed the previously announced sale of our MEMS sensors business line for $900 million in cash before closing adjustments and up to an additional $50 million contingent upon the achievement of specified technical milestones.
Summary of Reported Fourth Quarter and full-year 2025 ($ millions, unaudited) (1)
Q4 2025
Q3 2025
Q4 2024
Q - Q
Y - Y
2025
2024
Total Revenue
$
3,335
$
3,173
$
3,111
5%
7%
$
12,269
$
12,614
GAAP Gross Profit
$
1,807
$
1,787
$
1,678
1%
8%
$
6,716
$
7,119
Gross Profit Adjustments(i)
$
(106
)
$
(23
)
$
(111
)
$
(250
)
$
(213
)
Non-GAAP Gross Profit
$
1,913
$
1,810
$
1,789
6%
7%
$
6,966
$
7,332
GAAP Gross Margin
54.2
%
56.3
%
53.9
%
54.7
%
56.4
%
Non-GAAP Gross Margin
57.4
%
57.0
%
57.5
%
56.8
%
58.1
%
GAAP Operating Income (Loss)
$
744
$
893
$
675
-17%
10%
$
3,047
$
3,417
Operating Income Adjustments(i)
$
(410
)
$
(178
)
$
(390
)
$
(1,017
)
$
(952
)
Non-GAAP Operating Income
$
1,154
$
1,071
$
1,065
8%
8%
$
4,064
$
4,369
GAAP Operating Margin
22.3
%
28.1
%
21.7
%
24.8
%
27.1
%
Non-GAAP Operating Margin
34.6
%
33.8
%
34.2
%
33.1
%
34.6
%
GAAP Net Income (Loss) attributable to Stockholders
$
455
$
631
$
495
-28%
-8%
$
2,021
$
2,510
Net Income Adjustments(i)
$
(396
)
$
(159
)
$
(322
)
$
(983
)
$
(866
)
Non-GAAP Net Income (Loss) Attributable to Stockholders
$
851
$
790
$
817
8%
4%
$
3,004
$
3,376
GAAP diluted Net Income (Loss) per Share(ii)
$
1.79
$
2.48
$
1.93
-28%
-7%
$
7.95
$
9.73
Non-GAAP diluted Net Income (Loss) per Share(ii)
$
3.35
$
3.11
$
3.18
8%
5%
$
11.81
$
13.09
Additional information
Q4 2025
Q3 2025
Q4 2024
Q - Q
Y - Y
2025
2024
Y-Y
Automotive
$
1,876
$
1,837
$
1,790
2%
5%
$
7,116
$
7,151
—
%
Industrial & IoT
$
640
$
579
$
516
11%
24%
$
2,273
$
2,269
—
%
Mobile
$
485
$
430
$
396
13%
22%
$
1,584
$
1,497
6
%
Comm. Infra. & Other
$
334
$
327
$
409
2%
-18%
$
1,296
$
1,697
-24
%
DIO
154
161
151
DPO
60
58
65
DSO
29
31
30
Cash Conversion Cycle
123
134
116
Channel Inventory (weeks)
10
9
8
Gross Financial Leverage(iii)
2.6x
2.6x
2.1x
Net Financial Leverage(iv)
1.9x
1.8x
1.5x
Additional Information for the Fourth Quarter and full-year 2025:
For an explanation of GAAP to non-GAAP adjustments, please see "Non-GAAP Financial Measures".
Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.
Guidance for the First Quarter 2026: ($ millions, except Per Share data) (1)
GAAP
Reconciliation
non-GAAP
Low
Mid
High
Low
Mid
High
Total Revenue
$3,050
$3,150
$3,250
$3,050
$3,150
$3,250
Q-Q
-9%
-6%
-3%
-9%
-6%
-3%
Y-Y
8%
11%
15%
8%
11%
15%
Gross Profit
$1,685
$1,758
$1,831
$(38)
$1,723
$1,796
$1,869
Gross Margin
55.2%
55.8%
56.3%
56.5%
57.0%
57.5%
Operating Income (loss)
$1,395
$1,458
$1,521
$429
$966
$1,029
$1,092
Operating Margin
45.7%
46.3%
46.8%
31.7%
32.7%
33.6%
Financial Income (expense)
$(101)
$(101)
$(101)
$(9)
$(92)
$(92)
$(92)
Tax rate
19.5%-20.5%
17.5%-18.5%
Equity-accounted investees
$(5)
$(5)
$(5)
$(2)
$(3)
$(3)
$(3)
Non-controlling interests
$(11)
$(11)
$(11)
$(11)
$(11)
$(11)
Shares - diluted
254.1
254.1
254.1
254.1
254.1
254.1
Earnings Per Share - diluted
$4.01
$4.21
$4.41
$2.77
$2.97
$3.17
Note (1) Additional Information:
GAAP Gross Profit is expected to include Purchase Price Accounting ("PPA") effects, $(5) million; Share-based Compensation, $(13) million; Other Incidentals, $(20) million;
GAAP Operating Income (loss) is expected to include PPA effects, $(37) million; Share-based Compensation, $(108) million; Restructuring and Other Incidentals, $574 million which includes the estimated gain on sale of the MEMS sensors business line that closed on February 2, 2026;
GAAP Financial Income (expense) is expected to include Other financial expense $(9) million;
GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(2) million;
GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.
NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.
Non-GAAP Financial Measures
In managing NXP's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles ("GAAP"). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting NXP's business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP's underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled "Financial Reconciliation of GAAP to non-GAAP Results (unaudited)." Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP's operations.
In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share - Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.
The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).
Conference Call and Webcast Information
The company will host a conference call with the financial community on Tuesday, February 3, 2026 at 8:00 a.m. U.S. Eastern Standard Time (EST) to review the fourth quarter and full-year 2025 results in detail.
Interested parties may preregister to obtain a user-specific access code for the call here.
The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ:NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which our products are incorporated; recent changes in global trade policy including tariffs and related trade actions announced by the U.S., China and other countries, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in our customers' equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, and the continued hostilities and armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance our debt at or before maturity to meet our debt service, research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.
For further information, please contact:
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NXP-CORP
NXP SemiconductorsTable 1: Condensed consolidated statement of operations (unaudited)
($ in millions except share data)
Three months ended
Full year
December 31, 2025
September 28, 2025
December 31, 2024
2025
2024
Revenue
$
3,335
$
3,173
$
3,111
$
12,269
$
12,614
Cost of revenue
(1,528
)
(1,386
)
(1,433
)
(5,553
)
(5,495
)
Gross profit
1,807
1,787
1,678
6,716
7,119
Research and development
(665
)
(575
)
(612
)
(2,360
)
(2,347
)
Selling, general and administrative
(359
)
(286
)
(323
)
(1,204
)
(1,164
)
Amortization of acquisition-related intangible assets
(34
)
(31
)
(28
)
(117
)
(136
)
Total operating expenses
(1,058
)
(892
)
(963
)
(3,681
)
(3,647
)
Other income (expense)
(5
)
(2
)
(40
)
12
(55
)
Operating income (loss)
744
893
675
3,047
3,417
Financial income (expense):
Other financial income (expense)
(108
)
(98
)
(91
)
(384
)
(318
)
Income (loss) before income taxes
636
795
584
2,663
3,099
Benefit (provision) for income taxes
(131
)
(148
)
(77
)
(525
)
(545
)
Results relating to equity-accounted investees
(37
)
(1
)
(2
)
(70
)
(12
)
Net income (loss)
468
646
505
2,068
2,542
Less: Net income (loss) attributable to non-controlling interests
13
15
10
47
32
Net income (loss) attributable to stockholders
455
631
495
2,021
2,510
Earnings per share data:
Net income (loss) per common share attributable to stockholders in $
Basic
$
1.80
$
2.50
$
1.95
$
8.00
$
9.84
Diluted
$
1.79
$
2.48
$
1.93
$
7.95
$
9.73
Weighted average number of shares of common stock outstanding during the period (in thousands):
Basic
252,544
252,170
254,349
252,703
255,208
Diluted
254,078
254,310
256,628
254,331
257,848
NXP SemiconductorsTable 2: Condensed consolidated balance sheet (unaudited)
($ in millions)
As of
December 31, 2025
September 28, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
3,267
$
3,454
$
3,292
Short-term deposits
