NXP Semiconductors’ fourth quarter saw year-over-year growth driven by improved demand across automotive and industrial end markets. Management attributed the quarter’s performance to a rebound in automotive revenue, particularly as inventory adjustment cycles wound down, and to broad-based strength in industrial and IoT segments. CEO Rafael Sotomayor noted, “Our auto business returned to growth year-over-year, and the guide we provided continues that trend.” However, management also acknowledged that persistent weakness in communications infrastructure and the impact of recent divestitures, such as the sale of the MEMS sensor business, weighed on sentiment.
Is now the time to buy NXPI? Find out in our full research report (it’s free for active Edge members).
NXP Semiconductors (NXPI) Q4 CY2025 Highlights:
- Revenue: $3.34 billion vs analyst estimates of $3.31 billion (7.2% year-on-year growth, 0.7% beat)
- Adjusted EPS: $3.35 vs analyst estimates of $3.31 (1.2% beat)
- Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.29 billion (39.6% margin, 2% beat)
- Revenue Guidance for Q1 CY2026 is $3.15 billion at the midpoint, above analyst estimates of $3.10 billion
- Adjusted EPS guidance for Q1 CY2026 is $2.97 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 22.3%, in line with the same quarter last year
- Inventory Days Outstanding: 155, down from 161 in the previous quarter
- Market Capitalization: $56.46 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From NXP Semiconductors’s Q4 Earnings Call
- Thomas O’Malley (Barclays) questioned the pace of channel inventory restocking and whether NXP intended to reach its long-term 11-week target in 2026; CEO Rafael Sotomayor replied that improved demand will support this gradual shift.
- Matthew Prisco (Cantor) asked for detail on recent customer order trends and whether improved order patterns would persist; CFO Bill Betz said internal signals and backlog have improved, supporting optimism for 2026.
- Ross Seymore (Deutsche Bank) inquired about the impact of MEMS and RF Power business exits on revenue and growth; Betz explained MEMS will have a $300 million annual impact, with RF Power revenue tapering over several years.
- Joseph Quatrochi (Wells Fargo) pressed for specifics on how acquisitions accelerate the SDV portfolio; Sotomayor emphasized that TTTech Auto enhances the software-defined architecture and strengthens customer engagement for new vehicle platforms.
- Vivek Arya (BofA Securities) probed the sustainability of industrial and IoT growth, particularly after a strong start to the year; Sotomayor responded that growth is broad-based across industrial applications, with design wins in healthcare and automation leading the way.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will monitor (1) execution on new SDV and physical AI product ramps, (2) the pace and profitability of the company’s transition away from non-core businesses like RF Power and MEMS, and (3) continued improvement in working capital efficiency, especially inventory management. The impact of recent acquisitions and customer adoption of next-generation platforms will also be key factors in assessing NXP’s trajectory.
NXP Semiconductors currently trades at $223.69, down from $231.08 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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