NXP Semi sees 3Q adj. oper income $998M to $1.12B, est. $1.02B

NXP Semi sees 3Q adj. oper income $998M to $1.12B, est. $1.02B

NXP Semiconductors N.V. (NASDAQ: NXPI) has provided guidance for the third quarter of 2025, with the company expecting adjusted operating income to range between $998 million and $1.12 billion, with an estimate of $1.02 billion [1]. This guidance reflects a 4% to 11% increase in revenue compared to the second quarter of 2025, with the midpoint of the range at $3,150 million.

The company's gross profit is expected to range between $1,723 million and $1,869 million, with a midpoint of $1,796 million, representing a 56.5% to 57.5% gross margin. Operating income is forecasted to range between $818 million and $1,124 million, with a midpoint of $998 million, corresponding to a 26.8% to 34.6% operating margin.

NXP's financial income is expected to be a negative $(10) million to $(91) million, with a midpoint of $(101) million. The company anticipates a tax rate of 17.0% to 18.0%, with a midpoint of 17.8%. Equity-accounted investees are expected to have a negative $(1) million to $(14) million impact, with a midpoint of $(5) million. Non-controlling interests are expected to have a negative $(14) million impact.

The company's diluted shares outstanding are expected to remain at 253.8 million, with earnings per share (EPS) ranging between $2.22 and $3.30, with a midpoint of $2.89. The guidance is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control.

NXP's second quarter 2025 results were announced on July 21, 2025, with revenue of $2.93 billion, down 6% year-on-year. GAAP gross margin was 53.4%, GAAP operating margin was 23.5%, and GAAP diluted net income per share was $1.75. Non-GAAP gross margin was 56.5%, non-GAAP operating margin was 32.0%, and non-GAAP diluted net income per share was $2.72. Cash flow from operations was $779 million, with net capex investments of $83 million, resulting in non-GAAP free cash flow of $696 million. Capital return during the quarter was $461 million, representing 66% of second quarter non-GAAP free cash flow. Share buybacks were $204 million and dividends paid during the quarter were $257 million [1].

References:
[1] https://www.globenewswire.com/news-release/2025/07/21/3119034/0/en/NXP-Semiconductors-Reports-Second-Quarter-2025-Results.html