NXP Semiconductors NV (NASDAQ:NXPI) stock fell2.45% (As on October 28, 11:20:55 AM UTC-4, Source: Google Finance) after the company forecast fourth-quarter revenue above Wall Street estimates, as it recovers from sluggish demand and sees a rebound in the automotive segment. The chipmaker is benefiting from momentum across automotive end markets due to demand for its scalable processing solutions. Analysts say that the auto end market is improving following tariff-related pull-ins, benefiting companies like NXP. The company has made a string of acquisitions recently, having closed a $243 million cash deal for Aviva Links, an automotive networking company, last week. It completed its TTTech Auto purchase in June, looking to strengthen the automotive business. NXP has also received regulatory approvals for its acquisition of Kinara, which makes high performance, energy-efficient and programmable discrete neural processing units, and is working to close the transaction.
Moreover, the company announced its new 18-channel Li-ion battery cell controller BMx7318/7518 IC family, designed for electric vehicle high-voltage battery management systems (HVBMS), industrial energy storage systems (ESS) and 48 V battery management systems.
NXPI in the third quarter of FY25 has reported the adjusted earnings per share of $3.11, which is inline with the analysts’ estimates for the adjusted earnings per share of $3.11, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 2 percent to $3.17 billion in the third quarter of FY25, beating the analysts’ estimates for revenue by 0.60%. Revenue from the automotive segment – NXP’s biggest – grew 6% sequentially in the quarter. Mobile revenue was up 30%. The company delivered Non-GAAP gross margin of 57.0 percent with non-GAAP operating margin of 33.8 percent.
Additionally, Cash flow from operations was $585 million, with net capex investments of $76 million, resulting in non-GAAP free cash flow of $509 million. Capital return during the quarter was $310 million, representing 60.9 percent of third quarter non-GAAP free cash flow. Share buybacks were $54 million and dividends paid during the quarter were $256 million. After the end of the third quarter, between September 29, 2025, and October 24, 2025, NXP executed via a 10b5-1 program additional share repurchases totaling $100 million. NXP board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the third quarter of 2025.
The Dutch firm expects fourth-quarter revenue in the range of $3.20 billion to 3.40 billion, with the midpoint coming in above analysts’ average estimate of $3.24 billion, according to data compiled by LSEG.