Why Is NXP (NXPI) Down 2.5% Since Last Earnings Report?

It has been about a month since the last earnings report for NXP Semiconductors (NXPI). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

NXP Semiconductors' Q4 Earnings and Revenues Beat Estimates

NXP Semiconductors ended 2025 on a strong note, reporting better-than-expected results for the fourth quarter. The top and bottom lines marked a year-over-year improvement as well.

NXP Semiconductors reported non-GAAP earnings of $3.35 per share, surpassing the Zacks Consensus Estimate by 1.41%. The figure increased 5% year over year.

NXP Semiconductors’ top line of $3.34 billion beat the Zacks Consensus Estimate of $3.30 billion and came above the midpoint of management’s guidance range of $3.2-$3.4 billion. The figure rose 7% year over year.

NXPI’s Q4 Details

Revenues from Automotive (56.3% of total revenues) in the fourth quarter were $1.88 billion, up 5% year over year and 2% sequentially. Revenues from Industrial & IoT (19.2% of total revenues) were $640 million, up 24% from the year-ago quarter and up 11% sequentially.

Fourth-quarter revenues from Mobile (14.5% of total revenues) were $485 million, up 22% year over year and 13% from the previous quarter. Revenues from Communication Infrastructure & Others (10% of total revenues) were $334 million, representing a 18% decline from the year-ago quarter and a 2% increase sequentially.

NXP Semiconductors’ non-GAAP gross profit in the fourth quarter was $1.91 billion, up 7% year over year and 6% sequentially. The non-GAAP gross margin of 57.4% contracted 10 basis points year over year but improved 40 basis points sequentially.

Non-GAAP operating income increased 8% year over year and sequentially to $1.15 billion. The non-GAAP operating margin expanded 40 basis points year over year and 80 basis points sequentially to 34.6%.

NXPI’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, NXPI’s cash and cash equivalents were $3.27 billion, up from $3.45 billion as of Sept. 28, 2025.

Long-term debt at the end of the fourth quarter was $10.97 billion, unchanged from the previous quarter.

NXP Semiconductors generated operating cash flow of $891 million and free cash flow of $793 million in the fourth quarter. During full-year 2025, it generated operating cash flow and free cash flow of $2.82 billion and $2.43 billion, respectively.

During the quarter, NXPI paid dividends of $254 million and repurchased shares worth $338 million. In 2025, it paid dividends of $1.03 billion and repurchased shares worth $899 million.

NXPI Initiates Q1 2026 Guidance

For the first quarter of 2026, NXP Semiconductors expects revenues in the range of $3.05-$3.25 billion. NXPI expects non-GAAP earnings per share in the band of $2.77-$3.17.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, NXP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

NXP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report

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