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NXP Semiconductors (NXPI) FY2025 results: revenue $12.3 billion, down 2.7% on the year

NXP Semiconductors N.V. (NXPI) reported revenue of $12.3 billion for fiscal 2025, the year ended 31 December 2025, down 2.7% on the year before. Net income was $2.0 billion, down 19.5%, and diluted earnings per share $7.95. The figures are the company's own, from the 10-K it filed with the SEC on 19 February 2026.

Revenue
$12.3 billion
-2.7% on the year
FY2018FY2025
Operating margin
24.8%
27.1% a year earlier
FY2018FY2025
Net income
$2.0 billion
-19.5% on the year
FY2018FY2025
Diluted EPS
$7.95
-18.3% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 11 new.

  • Fourth-quarter revenue grew 7 percent: Revenue was $3.34 billion, up 5 percent from the third quarter and 7 percent year on year. Full-year revenue was $12.27 billion, down 3 percent year on year.
  • Industrial & IoT grew 24 percent year on year: Industrial & IoT revenue was $640 million, up 11 percent sequentially and 24 percent year on year. Full-year revenue was $2,273 million, flat against 2024.
  • Non-GAAP gross margin was 57.4 percent: Fourth-quarter non-GAAP gross margin was 57.4 percent and operating margin 34.6 percent. Full-year non-GAAP gross margin was 56.8 percent and operating margin 33.1 percent.
  • Free cash flow of $793 million: Operating cash flow was $891 million, with net capex of $98 million, giving non-GAAP free cash flow of $793 million, or 23.8 percent of revenue. Full-year free cash flow was $2,425 million, 19.8 percent of revenue.
  • Capital return took 74.7 percent of free cash flow: Capital return in the quarter was $592 million: $338 million of buybacks and $254 million of dividends. Full-year capital return of $1.924 billion was 79.3 percent.
Read the Q4 FY2025 earnings call summary

From this 10-K

NXP Semiconductors is a semiconductor company with over 70 years of operating history. It was incorporated in the Netherlands in 2006 as a Dutch public company with limited liability, with its corporate seat and principal executive office in Eindhoven. Its capability spans embedded processing, mixed analog-digital work, power management, digital processing of signals, cryptography and security, high-speed interface, radio frequency and embedded system design. There is one reportable segment representing the company as a whole.

NXP Semiconductors N.V., the 10-K for 2025

NXP Semiconductors is a semiconductor company with over 70 years of operating history. It was incorporated in the Netherlands in 2006 as a Dutch public company with limited liability, with its corporate seat and principal executive office in Eindhoven. Its capability spans embedded processing, mixed analog-digital work, power management, digital processing of signals, cryptography and security, high-speed interface, radio frequency and embedded system design. There is one reportable segment representing the company as a whole.

The four end markets

The product groups are organised around Automotive, Industrial & IoT, Mobile, and Communication Infrastructure & Other. In automotive the products are core microcontrollers, in-vehicle infotainment, in-vehicle networking, secure car access, connectivity, and the growth lines of software-defined vehicle work, radar systems, electrification and connectivity. In industrial and the internet of things they are advanced analog, processors, analog and security, custom analog, and intelligent edge systems. In mobile they are secure mobile payment and access solutions and secure card solutions. In communication infrastructure and other they are interfaces, legacy networking processors and radio frequency power amplifiers.

The filing sets out its own reading of automotive demand: growth rests on global vehicle sales and production and on the semiconductor content per vehicle, and the filing says the second will be the more important of the two while global vehicle sales and production stagnate. It names three trends behind rising content: autonomous driving, electrification and software-defined vehicles. Safety features are moving from passive systems to active systems with advanced driver assistance such as radar and vision, content is rising in engine management and battery management systems, networking is growing as subsystems talk to each other and to the outside, and smart car access, ultra-wideband and near-field communication are gaining ground.

It also describes the automotive semiconductor market as one with high barriers to entry, because of stringent qualification processes, zero defect quality processes, functionally safe design architecture, high reliability, extensive design-in timeframes and long product life cycles.

On the industrial and internet of things side, the filing describes a highly fragmented market covering factory automation, home and building automation, appliances, home entertainment, power and energy, and healthcare, driven by demand for real-time insight in factories, lower resource consumption in smart factories and buildings, convenience and security in smart homes, more processing in consumer devices, and health monitoring.

Manufacturing

NXP runs a hybrid manufacturing model, combining wholly owned facilities, one facility operated jointly with another semiconductor company, and third-party foundries and assembly and test subcontractors, all managed through one centralised organisation.

Making a semiconductor divides into front-end and back-end. Front-end work happens in wafer fabrication plants and imprints substrate silicon wafers with the circuitry, a cycle the filing says can involve as many as 300 process steps. Back-end work is the assembly, test and packaging into a form that can be distributed, and because it is less complicated the company says it places its back-end facilities more on cost than on technical grounds. Internal and joint venture wafer manufacturing is focused on proprietary specialty process technologies, while process technologies available at third-party foundries are generally outsourced where that is economical. The front-end facilities use complementary metal oxide semiconductor, bipolar, bipolar CMOS and double-diffused processes.

The acquisitions of 2025

Three closed during the year. TTTech Auto closed on 17 June 2025 for $766 million in cash, or $675 million net of cash acquired; it makes safety-critical systems and middleware for software-defined vehicles. Aviva Links closed on 24 October 2025 for $222 million in cash, or $202 million net of cash acquired, plus $26 million through settlement of previously held investments; it provides in-vehicle connectivity compliant with the Automotive SerDes Alliance standard. Kinara closed on 27 October 2025 for $284 million in cash, or $283 million net of cash acquired; it makes programmable discrete neural processing units. All three sit in the Automotive and Industrial & IoT end markets.

From NXP Semiconductors' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 19 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue12,26912,61413,276-2.7%
Cost of revenue5,5535,4955,723+1.1%
Gross profit6,7167,1197,553-5.7%
Gross margin54.7%56.4%56.9%
Research and development2,3602,3472,418+0.6%
Selling, general and administrative1,2041,1641,159+3.4%
Operating income3,0473,4173,661-10.8%
Operating margin24.8%27.1%27.6%
Interest expense466398438+17.1%
Pre-tax income2,6633,0993,352-14.1%
Income tax525545523-3.7%
Effective tax rate19.7%17.6%15.6%
Net income2,0212,5102,797-19.5%
Net margin16.5%19.9%21.1%
Diluted EPS$7.95$9.73$10.70-18.3%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow2,8202,7823,513+1.4%
Capital expenditure397727827-45.4%
Free cash flow2,4232,0552,686+17.9%
Free cash flow margin19.7%16.3%20.2%
Cash from investing-2,357-686-1,508
Cash from financing-494-2,662-1,990
Depreciation and amortisation8329251,106-10.1%
Share-based compensation462461411+0.2%
Buybacks8991,3731,053-34.5%
Dividends paid1,0251,0381,006-1.3%
Dividend per share$4.06$4.06$4.060.0%
Diluted shares, weighted254m258m261m-1.4%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity10,0569,1838,644+9.5%
Non-controlling interest395348316+13.5%
Debt12,22210,85411,250+12.6%
Operating lease liabilities215223204-3.6%
Other liabilities3,6723,7773,939-2.8%
Total liabilities and equity26,56024,38524,353+8.9%
Fixed assets2,9773,2673,323-8.9%
Goodwill10,2999,9309,955+3.7%
Intangible assets1,547836922+85.0%
Cash and equivalents3,2673,2923,862-0.8%
Receivables1,0551,032894+2.2%
Inventory2,5772,3562,134+9.4%
Other assets4,8383,6723,263+31.8%
Total assets26,56024,38524,353+8.9%

10-K for the year ended 31 December 2025, filed 19 February 2026: the filing.