AI Takeaway
NXP Semiconductors reported a challenging FY2025 with revenue declining 2.7% to $12.27B and net income falling 19.5% to $2.02B, as cost pressures compressed margins despite resilient operating cash flow of $2.82B.
Revenue
$12.27B
-2.74% YoY
EPS (Basic)
$8.00
-18.70% YoY
Gross Margin
54.7%
-1.70% YoY
Operating Income
$3.05B
-10.83% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 2.7% year-over-year to $12.27B in FY2025 from $12.61B in FY2024, reflecting softness in end markets. Cost of revenue rose 1.1% to $5.55B even as top-line contracted, squeezing gross profit by 5.7% to $6.72B.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin contracted approximately 170 basis points to 54.7% from 56.4%, while operating margin declined roughly 225 basis points to 24.8% from 27.1%. Net margin fell to 16.5% as higher interest costs and a lower revenue base amplified the earnings decline.
Source: Source: 10-K Key Ratios (XBRL Financial Data)
R&D expense was essentially flat at $2.36B (+0.6% YoY), signaling management's commitment to product development even during a revenue contraction. SG&A rose modestly by 3.4% to $1.20B, adding incremental pressure on operating income which fell 10.8% to $3.05B.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockNXP's 2.7% revenue decline in FY2025 highlights its exposure to cyclical semiconductor demand, particularly in automotive and industrial end markets. Prolonged weakness in these segments could further compress revenues and margins if recovery is delayed.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $3.35 versus the $3.34 analyst consensus — a +0.4% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $12.27B | $12.61B | -2.74% |
Cost of Revenue | $5.55B | $5.5B | +1.06% |
Gross Profit | $6.72B | $7.12B | -5.66% |
Operating Income | $3.05B | $3.42B | -10.83% |
Net Income | $2.02B | $2.51B | -19.48% |
EPS (Basic) | $8.00 | $9.84 | -18.70% |
EPS (Diluted) | $7.95 | $9.73 | -18.29% |
R&D Expense | $2.36B | $2.35B | +0.55% |
SG&A Expense | $1.2B | $1.16B | +3.44% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $26.56B | $24.39B | +8.92% |
Current Assets | $7.94B | $7.3B | +8.69% |
Current Liabilities | $3.88B | $3.1B | +25.27% |
Stockholders' Equity | $10.06B | $9.18B | +9.51% |
Cash & Equivalents | $3.27B | $3.29B | -0.76% |
Long-Term Debt | $11.04B | $10.42B | +5.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.82B | $2.78B | +1.37% |
Investing Cash Flow | $-2.36B | $-686M | -243.59% |
Financing Cash Flow | $-494M | $-2.66B | +81.44% |
Share Buybacks | $899M | $1.37B | -34.52% |
D&A | $832M | $925M | -10.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 54.7% | 56.4% | -1.70% |
Operating Margin | 24.8% | 27.1% | -2.25% |
Net Margin | 16.5% | — | — |
ROE | 20.1% | — | — |
ROA | 7.6% | — | — |
Current Ratio | $2.046 | — | — |
Other companies in Semiconductors
NXP Semiconductors reported FY2025 revenue of $12.27B, a decline of 2.7% from $12.61B in FY2024. The revenue drop was accompanied by rising costs, which caused gross profit to fall 5.7% and net income to decline a steeper 19.5% to $2.02B.
The headline story in FY2025 was broad-based margin compression: gross margin fell ~170 bps to 54.7% and operating margin dropped ~225 bps to 24.8%, while diluted EPS declined 18.3% to $7.95. On the positive side, operating cash flow held up well at $2.82B (+1.4%), and NXP maintained its R&D investment at $2.36B to support future product development.
Key risks inferred from the financial data include cyclical revenue exposure (revenue fell 2.7%), margin erosion from sticky costs, and a leveraged balance sheet with $11.04B in long-term debt and a 25.3% surge in current liabilities. Additionally, investing cash outflows jumped 243.6% to -$2.36B, suggesting a large capital commitment that carries execution risk.
NXP maintains a current ratio of 2.05x and generated $2.82B in operating cash flow, indicating solid near-term liquidity and cash generation. However, long-term debt of $11.04B and declining profitability (net income -19.5%) are areas investors should monitor closely heading into the next fiscal year.
NXP reported diluted EPS of $7.95 in FY2025, down 18.3% from $9.73 in FY2024. The decline was driven primarily by a 19.5% drop in net income to $2.02B, with reduced share buybacks ($899M vs. $1.37B) providing less EPS support than in the prior year.