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NXP Semiconductors
(NASDAQ:NXPI)
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Rating:81Outperform
Price Target:
$293.00
▲(30.37% Upside)
Action:Reiterated
Date:10/28/26
NXPI scores well primarily on strong financial quality (high margins and strong free cash flow) and a very upbeat earnings call with raised/strong growth and margin outlook. Technicals are supportive with positive trend and momentum, while valuation is reasonable but not deeply discounted, keeping the overall score in the low-80s.
Positive Factors
Strong cash generation
Robust free cash flow and close alignment with net income indicate strong earnings quality and internal funding capacity. This supports investment in capacity and product development while preserving flexibility for shareholder returns and debt management through the next several quarters.
Negative Factors
Meaningful debt burden
Although leverage is improving, the sizable debt balance remains a constraint in a cyclical semiconductor business. Interest obligations and refinancing exposure can reduce flexibility during weaker demand periods and compete with investment or shareholder-return priorities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust free cash flow and close alignment with net income indicate strong earnings quality and internal funding capacity. This supports investment in capacity and product development while preserving flexibility for shareholder returns and debt management through the next several quarters.
Read all positive factors
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.
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The Fly
The FlyNXP Semiconductors (NXPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.44B
Dividend Yield1.61%
Average Volume (3M)3.61M
Price to Earnings (P/E)19.7
Beta (1Y)1.42
Revenue Growth8.77%
EPS Growth39.24%
CountryUS
Employees32,169
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)12.79
Shares Outstanding252,164,170
10 Day Avg. Volume4,311,398
30 Day Avg. Volume3,607,823
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)5.45
Price to Sales (P/S)4.47
P/FCF Ratio24.03
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue5.71
Enterprise Value/Gross Profit10.14
Enterprise Value/Ebitda15.15
Forecast
1Y Price Target
$292.94Price Target Upside30.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)15.14
Revenue Forecast (FY)$14.31B
NXP Semiconductors Business Overview & Revenue Model
Company Description
NXP Semiconductors N.V. specializes in the design and production of a broad array of semiconductor solutions. Its extensive portfolio encompasses various processing units, such as microcontrollers, application processors (including the popular i.M...
How the Company Makes Money
NXP makes money primarily by selling semiconductor products (integrated circuits and related solutions) to original equipment manufacturers (OEMs) and their suppliers, and to electronics manufacturers across its served end markets. Revenue is reco...
NXP Semiconductors Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 01, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record Q3 financial results, broad-based double-digit growth, expanding margins, strong free cash flow, a larger share repurchase authorization and multiple structural growth drivers across software-defined vehicles, industrial AI and data centers. The main challenges were mobile revenue declines, expected seasonal weakness in Q1, the absence of broad-based automotive restocking, tight capacity and rising customer escalations, but these issues were outweighed by the company's growth outlook and operational momentum.Positive Updates
Q3 Revenue and Earnings Beat Outlook
NXP exceeded its Q3 outlook across all end markets, with every region growing double digits year over year. Revenue was $3.79 billion, up 19% year over year and up 22% excluding the MEMS sensor business. Non-GAAP operating margin was 37%, up 33 basis points, and non-GAAP EPS was $4.20, up 35% year over year.
Negative Updates
Mobile Revenue Decline
Mobile revenue was $411 million, down 4% year over year. NXP expects mobile revenue to decline in the mid-teens percentage range year over year in Q4.
Read all updates
Q3-2026 Updates
Positive
Negative
Q3 Revenue and Earnings Beat Outlook
NXP exceeded its Q3 outlook across all end markets, with every region growing double digits year over year. Revenue was $3.79 billion, up 19% year over year and up 22% excluding the MEMS sensor business. Non-GAAP operating margin was 37%, up 33 basis points, and non-GAAP EPS was $4.20, up 35% year over year.
Read all positive updates
Company Guidance
For Q4, NXP guides to revenue of $3.85 billion, plus or minus $100 million, up 15% year-on-year, or up 18% adjusted for the sale of the Sensors business, and up 2% sequentially; non GAAP gross margin of 59% plus or minus 50 basis points; operating expenses of $830 million, plus or minus $10 million; non GAAP operating margin of 37.5% at the midpoint; non GAAP financial expense of $79 million; non GAAP tax rate of approximately 17.5%; noncontrolling interest of $14 million; $5 million of losses in joint venture equity accounted investees; and non GAAP earnings per share of $4.36 at the midpoint, an increase of 30% year over year. Automotive is expected to be up in the low double digit percent range year over year and up low single digit sequentially, or high teens percentage growth year over year adjusted for the sale of the MEMS sensor business; Industrial and IoT up in the high 20% range year-over-year and up in the low-single-digit range sequentially; Mobile down in the mid-teens percent range year-over-year and up slightly sequentially; and communication infrastructure and other up over 50% year-over-year and up low-single-digits single digits sequentially. Q4 capital expenditures are expected to be approximately 3% of revenue, with equity payments to VSMC of $86 million and ESMC of $60 million. For 2027, NXP expects double digit growth in revenue, gross margins to reach 60% during 2027, operating expenses for the first half to be around 23% of revenue and the second half below 23%, a non GAAP annual effective tax rate of 17.5%, joint venture investee losses of around about $80 million for the full year, about a $10 million loss for Q1 and a $20 million loss for Q2, and capital expenditures of around 5%; data center revenue is expected to exceed the $500 million outlook and be over $1 billion in a couple of years.NXP Semiconductors Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.80B | 12.27B | 12.61B | 13.28B | 13.21B | 11.06B |
| Gross Profit | 7.77B | 6.68B | 7.12B | 7.55B | 7.52B | 6.07B |
| EBITDA | 5.20B | 3.81B | 4.42B | 4.90B | 5.04B | 3.81B |
| Net Income | 3.24B | 2.02B | 2.51B | 2.80B | 2.79B | 1.87B |
Balance Sheet | ||||||
| Total Assets | 27.61B | 26.56B | 24.39B | 24.35B | 23.24B | 20.86B |
| Cash, Cash Equivalents and Short-Term Investments | 3.94B | 3.27B | 3.03B | 4.06B | 3.62B | 2.83B |
| Total Debt | 10.98B | 12.22B | 10.85B | 11.18B | 11.16B | 10.57B |
| Total Liabilities | 15.14B | 16.11B | 14.85B | 15.39B | 15.50B | 14.09B |
| Stockholders Equity | 12.09B | 10.06B | 9.18B | 8.64B | 7.45B | 6.53B |
Cash Flow | ||||||
| Free Cash Flow | 3.65B | 2.28B | 2.06B | 2.51B | 2.67B | 2.15B |
| Operating Cash Flow | 3.80B | 2.82B | 2.78B | 3.51B | 3.90B | 3.08B |
| Investing Cash Flow | -372.00M | -2.36B | -686.00M | -1.51B | -1.25B | -934.00M |
| Financing Cash Flow | -2.93B | -494.00M | -2.66B | -1.99B | -1.62B | -1.58B |
NXP Semiconductors Technical Analysis
Positive
224.75
Price Trends
231.06
Positive
250.10
Positive
244.71
Positive
Market Momentum
3.75
Negative
62.53
Neutral
90.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Positive. The current price of 224.75 is below the 20-day moving average (MA) of 236.48, below the 50-day MA of 231.06, and below the 200-day MA of 244.71, indicating a bullish trend. The MACD of 3.75 indicates Negative momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 90.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXPI.
NXP Semiconductors Risk Analysis
NXP Semiconductors disclosed 42 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $63.44B | 19.68 | 29.17% | 1.61% | 8.77% | 39.24% | |
73 Outperform | $207.52B | 50.56 | 12.26% | 1.00% | 33.65% | 114.59% | |
73 Outperform | $283.11B | 40.08 | 40.51% | 1.83% | 20.27% | 40.76% | |
68 Neutral | $29.44B | 47.87 | 8.38% | ― | -3.14% | 44.55% | |
63 Neutral | $43.24B | 110.34 | 6.90% | 2.29% | 20.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $43.17B | 91.85 | 2.66% | 0.74% | 10.06% | -27.68% |
* Technology Sector Average
NXPI
NXP Semiconductors
251.69
48.89
24.11%
ADI
Analog Devices
428.27
198.25
86.19%
MCHP
Microchip
79.63
19.14
31.65%
ON
ON Semiconductor
75.63
24.78
48.73%
STM
STMicroelectronics
48.52
24.26
99.99%
TXN
Texas Instruments
309.83
153.37
98.03%
NXP Semiconductors Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NXP Semiconductors Guarantees New EIB Loan Facility
Positive
Sep 2, 2026
On September 1, 2026, NXP B.V., a wholly owned subsidiary of NXP Semiconductors N.V., entered into a $250 million unsecured senior loan facility agreement with the European Investment Bank to finance the design and implementation of an expansion o...
Business Operations and StrategyDividendsFinancial Disclosures
NXP Semiconductors Announces Q3 2026 Interim Dividend
Positive
Aug 28, 2026
On August 28, 2026, NXP Semiconductors’ board approved an interim dividend of $1.014 per ordinary share for the third quarter of 2026, payable in cash on October 8, 2026 to shareholders of record as of September 16, 2026. The move is part of...
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.