NXP Semiconductors Q2 2025 – Revenue Down 6%

By Ahmed Jameison • Tuesday, July 22 15:35 • Permanent Link

NXP Semiconductors N.V. has reported its financial results for the second quarter of 2025, ending on June 29. The company's quarterly revenue stood at $2.93 billion, which is a 6% decrease compared to the same period last year.

The GAAP gross margin for the second quarter was 53.4%, while the non-GAAP gross margin was 56.5%. This represents a decrease of 1.6% in GAAP gross margin and 2.1% in non-GAAP gross margin compared to the first quarter of 2025.

NXP's GAAP operating margin for the second quarter was 23.5%, and the non-GAAP operating margin was 32.0%. This shows a 2% decrease in GAAP operating margin and a 0.1% increase in non-GAAP operating margin from the first quarter of 2025.

The company's cash flow from operations for the second quarter was $779 million, with net capex investments of $83 million, resulting in non-GAAP free cash flow of $696 million, reflecting a decrease of 2.5% from the first quarter of 2025.

In terms of capital return, NXP allocated $461 million during the quarter, representing 66% of its second-quarter non-GAAP free cash flow. Share buybacks amounted to $204 million, while dividends paid during the quarter were $257 million.

In terms of revenue by segment, the automotive sector saw a 3% increase to $1.729 billion, the industrial & IoT segment experienced a 7% increase to $546 million, the mobile segment decreased by 2% to $331 million, and the communication infrastructure & other segment decreased by 2% to $320 million.

Looking ahead, NXP provided guidance for the third quarter of 2025, with total revenue expected to be in the range of $3.05 billion to $3.25 billion. The company also provided GAAP and non-GAAP metrics for gross profit, gross margin, operating income, operating margin, financial income (expense), tax rate, equity-accounted investees, shares * diluted, and earnings per share * diluted for the third quarter.

NXP has based its guidance 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 the release.

This article provides a detailed breakdown of NXP Semiconductors' financial performance and outlook, highlighting the changes in key metrics from the previous quarter. The market has reacted to these announcements by moving the company's shares -0.31% to a price of $227.555. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.