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NXP Semiconductors
(NASDAQ:NXPI)
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Rating:72Outperform
Price Target:
$253.00
▲(12.57% Upside)
Action:Reiterated
Date:09/06/26
NXPI’s score is driven primarily by strong profitability and cash generation, reinforced by a constructive earnings call with confident guidance and continued margin strength. The main offset is weaker technical momentum (price below key moving averages and negative MACD), while valuation is reasonable with a modest dividend. Recent corporate actions are supportive (dividends and capacity-expansion financing) but add some leverage sensitivity.
Positive Factors
Strong profitability and cash generation
NXPI combines high semiconductor margins with substantial free cash flow, supporting investment, dividends, and resilience across market cycles. This earnings quality provides a durable base for funding capacity, product development, and shareholder returns without relying solely on external financing.
Negative Factors
Meaningful leverage increases cyclical risk
Debt remains close to equity despite improving from prior years, leaving NXPI exposed to higher financing costs and reduced flexibility during semiconductor downturns. Leverage can constrain investment or shareholder returns if demand weakens, margins contract, or capacity spending requires additional funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
NXPI combines high semiconductor margins with substantial free cash flow, supporting investment, dividends, and resilience across market cycles. This earnings quality provides a durable base for funding capacity, product development, and shareholder returns without relying solely on external financing.
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.
Data provided by:
The Fly
The FlyNXP Semiconductors (NXPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.45B
Dividend Yield1.78%
Average Volume (3M)3.81M
Price to Earnings (P/E)19.3
Beta (1Y)1.47
Revenue Growth8.77%
EPS Growth39.24%
CountryUS
Employees32,169
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)11.78
Shares Outstanding252,164,170
10 Day Avg. Volume2,683,337
30 Day Avg. Volume3,814,043
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$304.44Price Target Upside35.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)15.09
Revenue Forecast (FY)$14.27B
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 primarily makes money by selling semiconductor devices and related software/enablement to original equipment manufacturers (OEMs) and their suppliers, with revenue recognized from shipments of chips into customers’ production supply chains. Ke...
NXP Semiconductors Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based revenue and margin outperformance with structural margin expansion, healthy free cash flow and an accelerating data center and physical AI opportunity. Management acknowledged selective pricing, input-cost inflation and lengthening lead times as near-term headwinds but provided confident Q3 guidance ($3.75B midpoint) and multi-quarter visibility, a growing design funnel (~$1.5B) and improved operational metrics. On balance, positive operational and financial momentum outweigh the manageable lowlights and risks.Positive Updates
Record Revenue and Strong YoY Growth
Q2 revenue of $3.5 billion, up 19% year-over-year and 10% sequentially; company delivered results above the midpoint of guidance.
Negative Updates
Mobile Segment Near-Term Weakness
Mobile revenue was $351M (+6% YoY in Q2) but guidance for Q3 expects mobile to be down mid-single-digits YoY (though up sequentially mid-teens), reflecting seasonal and component constraints.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong YoY Growth
Q2 revenue of $3.5 billion, up 19% year-over-year and 10% sequentially; company delivered results above the midpoint of guidance.
Read all positive updates
Company Guidance
NXP guided third‑quarter revenue of $3.75 billion ± $100 million (Bill: ~18% year‑over‑year and +7% sequentially; Rafael: +21% year‑over‑year when adjusted for the MEMS sensor sale), with all regions and end markets expected to be up sequentially; by segment they expect automotive to rise low‑double‑digits YoY and mid‑single‑digits sequentially (high‑teens YoY ex‑MEMS), industrial & IoT to grow in the high‑30% range YoY and mid‑single‑digits sequentially, mobile to be down mid‑single‑digits YoY but up mid‑teens sequentially, and communications infrastructure to be about +50% YoY and up high‑single‑digits vs Q2. Financial guidance includes non‑GAAP gross margin of 58.5% ±50 bps (up ~150 bps YoY, +50 bps sequentially), non‑GAAP operating expenses of $810 million ± $10 million (implying ~36.9% non‑GAAP operating margin at the midpoint), non‑GAAP financial expenses of ~$85 million, an 18% tax rate, $15 million of noncontrolling interest, and non‑GAAP EPS of $4.11 at the midpoint. Cash uses for Q3 are expected to include ~3% of revenue in capital expenditures, a VSMC capacity access fee of $70 million plus $80 million equity into VSMC and $30 million equity into ESMC (bringing cumulative JV investments to about $2.4 billion, ~70% of the planned commitment).NXP Semiconductors Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.18B | 12.27B | 12.61B | 13.28B | 13.21B | 11.06B |
| Gross Profit | 7.36B | 6.68B | 7.12B | 7.55B | 7.52B | 6.07B |
| EBITDA | 4.89B | 3.81B | 4.42B | 4.90B | 5.04B | 3.81B |
| Net Income | 2.97B | 2.02B | 2.51B | 2.80B | 2.79B | 1.87B |
Balance Sheet | ||||||
| Total Assets | 26.66B | 26.56B | 24.39B | 24.35B | 23.24B | 20.86B |
| Cash, Cash Equivalents and Short-Term Investments | 3.22B | 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 | 14.90B | 16.11B | 14.85B | 15.39B | 15.50B | 14.09B |
| Stockholders Equity | 11.40B | 10.06B | 9.18B | 8.64B | 7.45B | 6.53B |
Cash Flow | ||||||
| Free Cash Flow | 2.95B | 2.28B | 2.06B | 2.51B | 2.67B | 2.15B |
| Operating Cash Flow | 3.13B | 2.82B | 2.78B | 3.51B | 3.90B | 3.08B |
| Investing Cash Flow | -978.00M | -2.36B | -686.00M | -1.51B | -1.25B | -934.00M |
| Financing Cash Flow | -2.10B | -494.00M | -2.66B | -1.99B | -1.62B | -1.58B |
NXP Semiconductors Technical Analysis
Negative
224.75
Price Trends
250.27
Negative
269.02
Negative
242.54
Negative
Market Momentum
-6.86
Negative
43.92
Neutral
77.30
Neutral
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 224.75 is below the 20-day moving average (MA) of 227.69, below the 50-day MA of 250.27, and below the 200-day MA of 242.54, indicating a neutral trend. The MACD of -6.86 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.30 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $236.02B | 39.10 | 35.77% | 2.20% | 16.66% | 20.14% | |
74 Outperform | $175.53B | 42.77 | 12.26% | 1.18% | 33.65% | 114.59% | |
72 Outperform | $57.45B | 19.34 | 28.05% | 1.78% | 8.77% | 39.24% | |
67 Neutral | $28.96B | 47.08 | 8.38% | ― | -3.14% | 44.55% | |
63 Neutral | $40.27B | 102.77 | 6.90% | 2.45% | 20.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $46.44B | 98.98 | 2.66% | 0.69% | 10.06% | -27.68% |
* Technology Sector Average
NXPI
NXP Semiconductors
227.84
6.27
2.83%
ADI
Analog Devices
362.25
116.35
47.31%
MCHP
Microchip
74.17
10.54
16.56%
ON
ON Semiconductor
74.38
25.50
52.17%
STM
STMicroelectronics
52.24
25.87
98.09%
TXN
Texas Instruments
258.44
77.31
42.68%
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...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
NXP Semiconductors Declares Q2 2026 Cash Interim Dividend
Positive
Jun 11, 2026
NXP Semiconductors reported the outcomes of its 2026 annual general meeting of shareholders held on June 10, 2026, where investors adopted the 2025 statutory accounts and granted discharge to the board for the 2025 financial year. Shareholders als...
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.