Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 7.2% year on year to $3.34 billion. Guidance for next quarter’s revenue was better than expected at $3.15 billion at the midpoint, 1.5% above analysts’ estimates. Its non-GAAP profit of $3.35 per share was 1.2% above analysts’ consensus estimates.
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NXP Semiconductors (NXPI) Q4 CY2025 Highlights:
- Revenue: $3.34 billion vs analyst estimates of $3.31 billion (7.2% year-on-year growth, 0.7% beat)
- Adjusted EPS: $3.35 vs analyst estimates of $3.31 (1.2% beat)
- Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.29 billion (39.6% margin, 2% beat)
- Revenue Guidance for Q1 CY2026 is $3.15 billion at the midpoint, above analyst estimates of $3.10 billion
- Adjusted EPS guidance for Q1 CY2026 is $2.97 at the midpoint, above analyst estimates of $2.95
- Operating Margin: 22.3%, in line with the same quarter last year
- Free Cash Flow Margin: 23.8%, up from 8.4% in the same quarter last year
- Inventory Days Outstanding: 153, down from 161 in the previous quarter
- Market Capitalization: $56.91 billion
EINDHOVEN, The Netherlands, Feb. 02, 2026 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the fourth quarter, which ended December 31, 2025. “NXP delivered quarterly revenue of $3.34 billion, surpassing the midpoint of our guidance and reflecting sequential improvement across all end markets. Throughout 2025, we executed effectively despite a challenging first half, maintaining operational discipline while advancing our strategic priorities in software defined vehicles and physical AI. Through strategic acquisitions we strengthened our portfolio to drive leadership in intelligent systems at the edge for automotive, industrial and IoT. These actions, combined with an improving demand environment, position NXP for profitable revenue growth. We remain committed to disciplined investment, margin expansion, and portfolio optimization to drive sustainable, long‑term value for our shareholders,” said Rafael Sotomayor, NXP President and Chief Executive Officer.
Company Overview
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, NXP Semiconductors grew its sales at a decent 7.3% compounded annual growth rate. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. NXP Semiconductors’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 3.9% over the last two years. 
This quarter, NXP Semiconductors reported year-on-year revenue growth of 7.2%, and its $3.34 billion of revenue exceeded Wall Street’s estimates by 0.7%. Adding to the positive news, NXP Semiconductors’s growth inflected positively this quarter, news that will likely give some shareholders hope. Company management is currently guiding for a 11.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 9.2% over the next 12 months. While this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, NXP Semiconductors’s DIO came in at 153, which is 29 days above its five-year average. These numbers suggest that despite the recent decrease, the company’s inventory levels are higher than what we’ve seen in the past.
Key Takeaways from NXP Semiconductors’s Q4 Results
A highlight during the quarter was NXP Semiconductors’s improvement in inventory levels. We were also glad its revenue guidance for next quarter slightly exceeded Wall Street’s estimates. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 4.9% to $219.73 immediately following the results.
So should you invest in NXP Semiconductors right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
