Education
About Us
Working with TipRanks
Follow Us
NXP Semiconductors (NXPI)
NASDAQ:NXPI
Top Page
NXP Semiconductors
(NASDAQ:NXPI)
Select Model
Select Model
Rating:67Neutral
Price Target:
$271.00
▲(25.25% Upside)
Action:ReiteratedDate:02/07/26
NXPI’s score is driven primarily by strong profitability and free-cash-flow generation, supported by constructive guidance and strategic traction highlighted on the earnings call. The rating is held back by meaningful leverage, mixed/soft near-term technical signals, and a relatively premium P/E with only a moderate dividend yield.
Positive Factors
High Profitability
Sustained high gross and net margins reflect durable pricing power and favorable product mix in secure connectivity and premium embedded chips. These margins support reinvestment and returns even if volumes ebb, underpinning long-term operating resilience across automotive, mobile and IoT end markets.
Strong Free Cash Flow
Robust free cash flow generation provides lasting financial flexibility for capex, strategic investments and shareholder returns. Growing FCF and near parity with earnings enable continued funding of VSMC partnerships, dividends and buybacks while supporting balance sheet management over the medium term.
Automotive & Physical AI Design Wins
Meaningful design wins and targeted M&A deepen NXP's position in software‑defined vehicles and edge 'physical AI.' These structural opportunities (8%–12% long‑term auto target) create sticky, higher‑value design cycles and durable content growth beyond commodity semiconductor cycles.
Negative Factors
Elevated Leverage
A substantial debt load raises sensitivity to cyclical downturns and limits financial flexibility for opportunistic M&A or aggressive buybacks. Near‑term capacity fees and VSMC equity commitments amplify covenant and cash‑flow planning needs despite healthy interest coverage metrics.
MEMS Divestiture Cuts Revenue Base
Divesting MEMS streamlines strategic focus but permanently reduces the revenue baseline by roughly $300M. That compaction means future topline comparisons, growth targets and scalability will rely more heavily on core automotive, IoT and mobile content gains.
Communications Infrastructure Weakness
A sharp, structural decline in comms infrastructure (incl. RF Power) reduces diversification and recurring revenue from networking end markets. Exit of RF Power and weakening digital networking create a multi‑quarter headwind that increases dependence on automotive and industrial cycles.
NXP Semiconductors (NXPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.39B
Dividend Yield1.79%
Average Volume (3M)3.01M
Price to Earnings (P/E)27.1
Beta (1Y)1.47
Revenue Growth-6.81%
EPS Growth-23.16%
CountryUS
Employees33,100
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.35
Shares Outstanding252,692,840
10 Day Avg. Volume2,359,251
30 Day Avg. Volume3,013,939
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)5.45
Price to Sales (P/S)4.47
P/FCF Ratio22.64
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.18
Enterprise Value/Gross Profit9.50
Enterprise Value/Ebitda16.22
Forecast
1Y Price Target
$251.94Price Target Upside16.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)13.94
Revenue Forecast (FY)$13.54B
NXP Semiconductors Business Overview & Revenue Model
Company DescriptionNXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. The company's product solutions are used in a range of applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Malaysia, and internationally. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.
How the Company Makes MoneyNXP Semiconductors generates revenue primarily through the sale of semiconductor products and solutions. The company has several key revenue streams, including automotive semiconductors, which cater to the growing demand for advanced driver-assistance systems (ADAS) and electric vehicle (EV) technologies; secure identification and payment solutions; and connectivity solutions for IoT devices. NXP also benefits from strategic partnerships with leading technology firms and automotive manufacturers, enhancing its market reach and product offerings. Additionally, the company invests in research and development to innovate and expand its product portfolio, which supports long-term revenue growth.
NXP Semiconductors Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where NXP Semiconductors is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where NXP Semiconductors is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyNXP Semiconductors Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presents a constructive outlook: solid Q4 results with revenue and EPS beats, strengthened sequential and year-over-year guidance for Q1 compared with 90 days prior, clear strategic focus on software-defined vehicles and physical AI, sustained cash generation and disciplined capital allocation. Headwinds include a sharp YoY decline in Communications Infrastructure, the divestiture of the MEMS business (reducing revenue baseline by roughly $300M annually), an exit from RF Power with a $90M restructuring charge, elevated inventory days and typical seasonal sequential declines in Q1. On balance, company-specific growth drivers and margin/cash dynamics are portrayed as outweighing the challenges.Q4-2025 Updates
Positive Updates
Q4 Revenue Beat and Growth
Revenue of $3.34 billion in Q4, up 7% year-over-year and 5% sequentially, $35 million above the midpoint of guidance.
Strong Profitability and EPS
Non-GAAP operating margin of ~35% (40 bps above prior year) and non-GAAP EPS of $3.35, $0.07 better than guidance.
Improving Q1 Outlook Versus Prior View
Q1 FY2026 guidance of $3.15 billion, up 11% year-over-year (seasonally down 6% sequentially). Management notes this guide is better than its view 90 days ago and assumes no broad-based channel restocking.
Automotive Long-Term Momentum and SDV Wins
Automotive revenue $7.1 billion (flat YoY) with second-half acceleration aligning with the firm's 8%–12% long-term growth outlook; notable design wins for S32 family 5nm vehicle compute, S32K family, and automotive Ethernet; TTTech Auto and Aviva Links acquisitions expected to accelerate SDV engagements (material revenue contribution expected beyond 2027).
Industrial & IoT Strength and Physical AI Traction
Industrial & IoT revenue $2.3 billion (flat YoY) with second-half growth materially above the 8%–12% long-term outlook; strong customer engagement for 'physical AI' at the edge via i.MX processors combined with Kinara MPU, with design traction in medical imaging, workplace safety cameras, logistics automation and robotics.
Mobile Growth and Premium Content Gains
Mobile revenue of $1.6 billion, up 6% year-over-year, with stronger demand and content gains in the premium mobile market and a defensible secure transactions franchise.
Q1 End-Market Tailwinds
Q1 guidance implies: Automotive mid-single-digit YoY growth; Industrial & IoT up ~low-20% YoY; Mobile up mid-teens YoY; Communications Infrastructure & Other up mid-teens YoY (Q1 guide includes only ~$25M from MEMS sensor business).
Robust Cash Generation and Capital Returns
Q4 operating cash flow $891 million, non-GAAP free cash flow $793 million (24% of revenue). Returned $338 million in buybacks and $254 million in dividends in Q4, plus an additional $36 million repurchase after quarter end.
Healthy Balance Sheet and Leverage
Total debt $12.2 billion, cash $3.3 billion, net debt $8.96 billion, net debt/adjusted EBITDA 1.9x and adjusted EBITDA interest coverage ~14.7x, enabling continued investments and buybacks while maintaining flexibility.
Progress on Manufacturing Investments
Invested about $1.7 billion of planned $3.4 billion in VSMC/ESMC partnerships (~50% through the investment cycle) to support hybrid manufacturing and long-term gross margin expansion.
Strategic Portfolio Actions and One-Time Gain
Closed sale of MEMS sensor business to STMicro for $900M (plus $50M contingent), resulting in an expected one-time GAAP gain of ~ $630M included in Q1 GAAP guidance; reallocated R&D focus toward SDV and physical AI.
Negative Updates
Communications Infrastructure Decline
Communications Infrastructure revenue declined to $1.3 billion, down 24% year-over-year, driven by deceleration in digital networking and RF Power; long-term growth expected to be flat as RF Power and digital networking weaken.
Channel Inventory Weakness and Controlled Restocking
Management reports weak distribution inventory and is prioritizing sell-through over broad-based restocking; finished Q4 with ~10 weeks of channel inventory and plans to move toward an 11-week long-term target in 2026.
Automotive Near-Term Drag from Inventory Digestion
Automotive flat year-over-year at $7.1 billion due to slower inventory digestion at direct customers in H1 2025; some accelerated auto drivers were below model in H1, producing a full-year auto result that was flat rather than in-target growth.
Revenue Baseline Reduced by MEMS Divestiture
Sale of MEMS sensors removes ~ $300 million of annual revenue from NXP's baseline (Q1 includes only ~$25M of MEMS contribution), reducing comparable revenue in future periods.
Exit and Restructuring in RF Power
RF Power business no longer aligned with strategy; company will stop new product development and took an approximately $90 million restructuring charge in Q4 GAAP results—RF revenue may persist but with declining future investment.
Q1 Sequential Margin and Seasonality Pressure
Q1 guidance implies sequential revenue and margin pressure: total revenue down ~6% sequentially, mobile expected down ~20% sequentially, automotive and industrial expected down mid-single-digit sequentially; Q1 non-GAAP operating margin midpoint guidance of ~32.7% (below Q4's 34.6%).
Gross Margin Slight Miss in Q4
Non-GAAP gross margin 57.4% in Q4 was a slight miss versus guidance, attributed to stronger-than-expected mobile revenue mix.
Inventory and Working Capital Still Elevated
Days of inventory at 154 days (including 7 days prebuild), cash conversion cycle 123 days; management expects improvements but current days are elevated and prebuilds are planned to increase (15–20 days by end of 2026), which could temporarily raise inventory levels.
Significant Near-Term Cash Commitments
Large near-term cash uses in Q1 include capacity access fee ~$190 million, equity investment into VSMC ~$210 million, and ongoing investments in VSMC/ESMC which could pressure free cash deployment timing despite strong FCF generation.
Company Guidance
NXP guided Q1 revenue of $3.15 billion ± $100 million (+11% YoY, -6% seq) and said it expects to operate within its long‑term financial model for full‑year 2026; at the midpoint it expects automotive to be up mid‑single‑digits YoY and down mid‑single‑digits vs Q4 (Q1 includes only ≈$25M/one month of MEMS revenue), Industrial & IoT up low‑20% YoY and down mid‑single‑digits seq, Mobile up mid‑teens YoY and down ≈20% seq, and Communications Infrastructure & Other up mid‑teens YoY and up 10% vs Q4. Financial guidance: non‑GAAP gross margin ~57% ±50 bps, operating expenses $765M ± $10M (long‑term target ~23% of revenue) implying non‑GAAP operating margin ~32.7% at the midpoint, non‑GAAP financial expense ≈$92M, non‑GAAP tax rate ~18%, noncontrolling interest ≈$11M, JV start‑up losses ≈$3M, stock‑based comp ≈$108M (excluded from non‑GAAP), and implied Q1 non‑GAAP EPS of $2.97 at the midpoint. Cash and investment items called out for Q1: CapEx ≈3% of revenue, a capacity access fee of $190M and a VSMC equity investment of $210M; separately, the completed MEMS sale will deliver $900M (+$50M contingent) in gross proceeds and a ~ $630M one‑time GAAP gain reflected in Q1 GAAP results.NXP Semiconductors Financial Statement Overview
Summary
Strong profitability and cash generation (TTM gross margin ~54.7%, net margin ~17.1%, FCF ~$2.65B up ~28%, FCF close to net income ~0.92x) support a solid score. Offsetting factors include essentially flat recent revenue (~1.9% TTM) and meaningful leverage (debt-to-equity ~1.22), which increases cyclicality risk.Income Statement
NXPI shows strong profitability for a semiconductor business, with TTM (Trailing-Twelve-Months) gross margin ~54.7% and net margin ~17.1% (down from ~19.9% in 2024 and ~21.1% in 2022). Revenue has been essentially flat over the last few years (TTM growth ~1.9% after a decline in 2024), and earnings have moderated from the 2022–2024 peak, indicating a softer demand/mix backdrop despite still-solid operating profitability.78
Positive
Balance Sheet
The balance sheet is workable but leveraged: TTM (Trailing-Twelve-Months) debt is about $12.2B against ~$10.1B of equity (debt-to-equity ~1.22). Returns on equity remain healthy (TTM ~21.6%), but have come down from higher levels in 2022–2023, and the increased debt load versus 2024 raises sensitivity to cyclical downturns even with a sizeable asset base (~$26.6B).62
Positive
Cash Flow
Cash generation remains a key strength: TTM (Trailing-Twelve-Months) free cash flow is ~$2.65B and grew strongly (~28%), and free cash flow is close to net income (~0.92x), signaling good earnings quality. The main weakness is reduced cash conversion versus prior years, with operating cash flow covering a smaller portion of accounting profits in TTM (~0.63x) compared with 2024–2021, suggesting less favorable working-capital/timing dynamics.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.27B | 12.61B | 13.28B | 13.21B | 11.06B |
| Gross Profit | 6.68B | 7.12B | 7.55B | 7.52B | 6.07B |
| EBITDA | 3.81B | 4.42B | 4.90B | 5.04B | 3.81B |
| Net Income | 2.02B | 2.51B | 2.80B | 2.79B | 1.87B |
Balance Sheet | |||||
| Total Assets | 26.56B | 24.39B | 24.35B | 23.24B | 20.86B |
| Cash, Cash Equivalents and Short-Term Investments | 3.27B | 3.03B | 4.06B | 3.62B | 2.83B |
| Total Debt | 12.22B | 10.85B | 11.18B | 11.16B | 10.57B |
| Total Liabilities | 16.11B | 14.85B | 15.39B | 15.50B | 14.09B |
| Stockholders Equity | 10.06B | 9.18B | 8.64B | 7.45B | 6.53B |
Cash Flow | |||||
| Free Cash Flow | 2.42B | 2.06B | 2.51B | 2.67B | 2.15B |
| Operating Cash Flow | 2.82B | 2.78B | 3.51B | 3.90B | 3.08B |
| Investing Cash Flow | -2.36B | -686.00M | -1.51B | -1.25B | -934.00M |
| Financing Cash Flow | -494.00M | -2.66B | -1.99B | -1.62B | -1.58B |
NXP Semiconductors Technical Analysis
Negative
216.37
Price Trends
231.49
Negative
221.11
Negative
219.54
Negative
Market Momentum
-2.68
Positive
37.41
Neutral
13.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Negative. The current price of 216.37 is below the 20-day moving average (MA) of 231.92, below the 50-day MA of 231.49, and below the 200-day MA of 219.54, indicating a bearish trend. The MACD of -2.68 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXPI.
NXP Semiconductors Risk Analysis
NXP Semiconductors disclosed 41 risk factors in its most recent earnings report. NXP Semiconductors reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NXP Semiconductors Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $67.70B | 10.61 | 18.04% | 0.28% | 44.95% | ― | |
71 Outperform | $183.93B | 31.53 | 29.98% | 3.11% | 9.90% | 1.65% | |
67 Neutral | $54.39B | 27.14 | 21.01% | 1.79% | -6.81% | -23.16% | |
64 Neutral | $24.99B | 183.93 | 1.47% | ― | -16.13% | -81.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $38.63B | 246.12 | -1.09% | 2.79% | -23.36% | -131.15% | |
56 Neutral | $28.80B | 136.11 | 3.00% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
NXPI
NXP Semiconductors
216.37
3.60
1.69%
MRVL
Marvell
78.09
-11.75
-13.08%
MCHP
Microchip
69.90
11.99
20.71%
ON
ON Semiconductor
62.53
16.04
34.50%
STM
STMicroelectronics
33.33
8.04
31.79%
TXN
Texas Instruments
202.39
12.81
6.76%
NXP Semiconductors Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NXP Semiconductors Secures $3 Billion Revolving Credit Facility
Positive
Feb 6, 2026
On February 6, 2026, NXP B.V. and NXP Funding LLC, both subsidiaries of NXP Semiconductors N.V., amended and restated their revolving credit agreement, securing US$3 billion in senior unsecured revolving credit commitments, including a US$200 million sub-facility for letters of credit, maturing on February 6, 2031. The facility, which can be used for general corporate purposes, features interest based on Term SOFR or a base rate plus margins tied to the company’s senior unsecured credit rating, commitment fees on undrawn amounts, and customary covenants, notably a 3.00 to 1.00 consolidated interest coverage ratio, with all obligations guaranteed by NXP Semiconductors N.V. and NXP USA, Inc., strengthening the group’s liquidity profile and financial flexibility for future operations.
The most recent analyst rating on (NXPI) stock is a Hold with a $215.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.
Dividends
NXP Semiconductors Declares Q4 2025 Interim Dividend
Positive
Nov 20, 2025
On November 19, 2025, NXP Semiconductors announced that its board of directors approved an interim dividend of $1.014 per ordinary share for the fourth quarter of 2025, to be paid on January 7, 2026. This decision reflects the board’s confidence in NXP’s strong capital structure and its ability to sustain long-term growth and robust cash flow, highlighting the company’s commitment to returning capital to shareholders.
The most recent analyst rating on (NXPI) stock is a Buy with a $289.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.