NXP Semiconductors (NXPI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $2.84 billion, down 9% year-over-year, aligning with guidance midpoint.

• Non-GAAP gross margin was 56.1%, operating margin 31.9%, and diluted EPS $2.64; GAAP gross margin was 55.0%, operating margin 25.5%, and diluted EPS $1.92.

• CEO transition announced: Kurt Sievers to retire at end of 2025, Rafael Sotomayor named successor.

• Announced acquisitions of Kinara ($307M), TTTech Auto ($625M), and Aviva Links ($242.5M), expected to close in 2025.

• Operating in a challenging macro environment with tariff-related volatility and market softness.

Financial highlights

• Q1 non-GAAP EPS was $2.64, $0.05 above guidance midpoint; GAAP EPS was $1.92.

• Non-GAAP gross profit was $1.59 billion; gross margin at 56.1%, down 210 basis points year-on-year.

• Non-GAAP operating expenses were $686 million, or 24.2% of revenue, down $50 million year-on-year.

• Free cash flow (non-GAAP) was $427 million, or 15% of revenue.

• Cash and cash equivalents at quarter-end were $3.99 billion; net debt was $7.74 billion.

Outlook and guidance

• Q2 2025 revenue guidance: $2.8–$3.0 billion, down 10% to 4% year-over-year, up to 6% sequentially.

• Non-GAAP gross margin expected at 55.8%–56.8%; operating margin at 30.8%–32.8%.

• Non-GAAP diluted EPS guidance: $2.16–$2.86.

• Guidance reflects improving cycle trends and immaterial direct tariff impact; indirect effects not incorporated.

• Capital expenditures expected at 4% of revenue in Q2.