📊 NXPI Key Takeaways
Is NXP Semiconductors N.V. (NXPI) a Good Investment?
NXP exhibits exceptional profitability with 56.2% gross margins and strong free cash flow generation of $714M, demonstrating operational excellence and financial discipline. However, revenue decline of 2.7% YoY and a sharper 18.3% EPS contraction indicate cyclical semiconductor weakness that outweighs margin strength, particularly concerning given the company's 1.0x debt-to-equity ratio.
NXP delivers strong profitability and cash generation despite a modest top-line decline, with resilient margins (gross ~55%, operating ~25%) and a robust ~20% FCF margin. Liquidity is solid and leverage appears manageable given 6.5x interest coverage. Near-term cyclical softness and EPS pressure temper growth, but the core fundamentals remain attractive.
NXP Semiconductors N.V. Key Strengths (NXPI)
- Exceptional profit margins (Gross 56.2%, Operating 47.3%, Net 35.3%) demonstrating pricing power and operational efficiency
- Strong free cash flow generation of $714M with 22.4% FCF margin, providing substantial flexibility for debt servicing and capital allocation
- Healthy liquidity position with 2.24x current ratio and 13.2x interest coverage ratio, reducing financial distress risk
- Resilient margins indicating pricing power and favorable mix
- Robust free cash flow (19.7% FCF margin) with modest capex
- Healthy liquidity (2.05x current, 1.38x quick) and adequate interest coverage
NXPI Stock Risks: NXP Semiconductors N.V. Investment Risks
- Revenue declining 2.7% YoY with EPS contracting 18.3% YoY, suggesting accelerating weakness in demand or margin compression
- Significant leverage with $11.0B long-term debt against $10.9B equity, limiting financial flexibility during industry downturns
- Cyclical semiconductor industry exposure with current demand environment indicating trough conditions, creating near-term profitability pressure
- Revenue and EPS declines suggest demand softness or mix headwinds
- Meaningful leverage (1.10x D/E) increases sensitivity to cycle and rates
- Semiconductor cycle volatility could pressure margins and cash conversion
Key Metrics to Watch
- Revenue growth trajectory reversal from current -2.7% decline
- Operating and gross margin stability as demand normalizes
- Free cash flow sustainability and debt reduction trajectory
- Revenue growth YoY
- Free cash flow margin
NXP Semiconductors N.V. (NXPI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.24x current ratio provides a solid financial cushion.
NXPI Profit Margin, ROE & Profitability Analysis
NXPI vs Technology Sector: How NXP Semiconductors N.V. Compares
How NXP Semiconductors N.V. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NXP Semiconductors N.V. Stock Overvalued? NXPI Valuation Analysis 2026
Based on fundamental analysis, NXP Semiconductors N.V. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NXP Semiconductors N.V. Balance Sheet: NXPI Debt, Cash & Liquidity
NXPI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NXP Semiconductors N.V.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.70 reflects profitable operations.
NXPI Revenue Growth, EPS Growth & YoY Performance
NXPI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.8B | $490.0M | $1.92 |
| Q3 2025 | $3.2B | $631.0M | $2.48 |
| Q2 2025 | $2.9B | $445.0M | $1.75 |
| Q1 2025 | $2.8B | $490.0M | $1.92 |
| Q3 2024 | $3.3B | $718.0M | $2.79 |
| Q2 2024 | $3.1B | $658.0M | $2.54 |
| Q1 2024 | $3.1B | $615.0M | $2.35 |
| Q3 2023 | $3.4B | $738.0M | $2.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NXP Semiconductors N.V. Dividends, Buybacks & Capital Allocation
NXPI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NXP Semiconductors N.V. (CIK: 0001413447)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NXPI
What is the AI rating for NXPI?
NXP Semiconductors N.V. (NXPI) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NXPI's key strengths?
Claude: Exceptional profit margins (Gross 56.2%, Operating 47.3%, Net 35.3%) demonstrating pricing power and operational efficiency. Strong free cash flow generation of $714M with 22.4% FCF margin, providing substantial flexibility for debt servicing and capital allocation. ChatGPT: Resilient margins indicating pricing power and favorable mix. Robust free cash flow (19.7% FCF margin) with modest capex.
What are the risks of investing in NXPI?
Claude: Revenue declining 2.7% YoY with EPS contracting 18.3% YoY, suggesting accelerating weakness in demand or margin compression. Significant leverage with $11.0B long-term debt against $10.9B equity, limiting financial flexibility during industry downturns. ChatGPT: Revenue and EPS declines suggest demand softness or mix headwinds. Meaningful leverage (1.10x D/E) increases sensitivity to cycle and rates.
What is NXPI's revenue and growth?
NXP Semiconductors N.V. reported revenue of $3.2B.
Does NXPI pay dividends?
NXP Semiconductors N.V. pays dividends, with $256.0M distributed to shareholders in the trailing twelve months.
Where can I find NXPI SEC filings?
Official SEC filings for NXP Semiconductors N.V. (CIK: 0001413447) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NXPI's EPS?
NXP Semiconductors N.V. has a diluted EPS of $4.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NXPI's fundamental grade?
Based on our AI fundamental analysis in May 2026, NXP Semiconductors N.V. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NXPI stock overvalued or undervalued?
Valuation metrics for NXPI: ROE of 10.3% (sector avg: 22%), net margin of 35.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is NXPI's AI grade for 2026?
Our dual AI analysis gives NXP Semiconductors N.V. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NXPI's free cash flow?
NXP Semiconductors N.V.'s operating cash flow is $793.0M, with capital expenditures of $79.0M. FCF margin is 22.4%.
How does NXPI compare to other Technology stocks?
Vs Technology sector averages: Net margin 35.3% (avg: 18%), ROE 10.3% (avg: 22%), current ratio 2.24 (avg: 2.5).