NXP Semiconductors Reports Q3 2025 Financial Results

NXP Semiconductors ( (NXPI) ) has released its Q3 earnings. Here is a breakdown of the information NXP Semiconductors presented to its investors.

NXP Semiconductors N.V. is a global leader in the semiconductor industry, providing innovative solutions across automotive, industrial & IoT, mobile, and communications infrastructure markets. The company is known for its cutting-edge technology and commitment to enhancing the connected world.

In its third-quarter 2025 earnings report, NXP Semiconductors reported a revenue of $3.17 billion, slightly down by 2% compared to the previous year but surpassing the midpoint of its guidance. The company highlighted a sequential improvement across all regions and end markets, signaling a potential cyclical recovery.

Key financial metrics for the quarter included a GAAP gross margin of 56.3% and a non-GAAP gross margin of 57.0%. The operating margin stood at 28.1% on a GAAP basis and 33.8% on a non-GAAP basis. The company generated a non-GAAP free cash flow of $509 million, with capital returns amounting to $310 million. Strategic moves included the announcement of a new battery cell controller IC family and the acquisition of Aviva Links to bolster its automotive networking solutions.

NXP’s strategic initiatives also involved the sale of its MEMS sensors business line to STMicroelectronics for up to $950 million and the issuance of senior unsecured notes totaling $1.5 billion. These actions reflect NXP’s focus on portfolio enhancement and disciplined investment to drive profitable growth.

Looking ahead, NXP Semiconductors remains optimistic about its growth prospects, supported by strong company-specific drivers and signs of market recovery. The management’s outlook emphasizes continued investment in innovation and strategic acquisitions to maintain its competitive edge in the semiconductor industry.