Strong figures from NXP mask weakness in telecom division and stock market turmoil
Briefly

Strong figures from NXP mask weakness in telecom division and stock market turmoil
"According to CEO Rafael Sotomayor, NXP managed to hold its own in a difficult first half of the year through tight operational management, while continuing to invest in strategic priorities such as software-defined vehicles and physical AI. Targeted acquisitions have strengthened the portfolio and kept it a leader in intelligent edge systems for automotive, industrial, and IoT. With rising demand, the company sees room for profitable growth, supported by continued focus on cost control, margin improvement, and product portfolio optimization."
"GAAP gross margin in the fourth quarter was 54.2 percent, with an operating margin of 22.3 percent and earnings per share of $1.79. On a non-GAAP basis, these figures were significantly higher, with a gross margin of 57.4 percent, an operating margin of 34.6 percent, and earnings per share of $3.35. Cash flow from operating activities was $891 million, resulting in free cash flow of $793 million after investments."
NXP closed Q4 2025 with $3.34 billion revenue, exceeding the guidance midpoint and showing sequential improvement across end markets. Full-year 2025 revenue was $12.27 billion, down 3 percent year-over-year. The company maintained tight operational management while investing in software-defined vehicles and physical AI, and completed targeted acquisitions that strengthened its intelligent edge systems portfolio for automotive, industrial, and IoT. Q4 GAAP gross margin was 54.2% with operating margin 22.3% (EPS $1.79); non-GAAP gross margin was 57.4% with operating margin 34.6% (EPS $3.35). Operating cash flow was $891 million and free cash flow $793 million. Automotive remained the largest market at $1.876 billion; Industrial & IoT rose 24% to $640 million while Communications Infrastructure declined 18%.
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