NXP Semiconductors N.V.

NXP is a semiconductor designer and manufacturer (operating a hybrid model of owned fabs and third-party foundries) primarily serving automotive and industrial & IOT (approx 75% of revenue with 58% being from automotive) but also serving mobile and communications infrastructure markets. Although a Netherlands-based company, it operates in more than 30 countries, trades on the NASDAQ and reports in $U.S., delivered more than $12 billion in revenue in FY25 and sports a market cap of more than $50 billion.

As a testament to their quality, their FY25 automotive revenue was only 5% below their 2023 high while many peers saw significant declines and their adjusted EPS declined by only 16% while many peers saw declines of 30% or much more.

Feb 2nd 2026 Divested Automotive MEMS business to ST Micro for up to $950m (Revs 300m in FY24)

 

Ests: 1Q26 2Q26    FY26 FY27

Revs  3.15b      3.3b   13.5b     14.9

EPS    2.98   3.21   13.91   16.70

P=229.65, Div=4.06, yield=1.8%, D/C=42%, TTM EPS=12.15, P/E=18.7X, FY26 P/E=16.5X

1Q26 3.05 vs 2.64 +15.5%, (est 2.98)

  • Apr 28, 2026, P=229.65, TTM EPS=12.15, P/E=18.7X, FY26 P/E=16.5X

  • Revs +12.2% to 3.18bn (est 3.15), GM 57.1% vs 56.1%, OM 33.1% vs 31.9%

  • Automotive +6.5% to 1.78bn (+10% divestiture of auto MEMS), Indu +23.6% to 828m, Mobil +15.7% to 391m, Comms +20.6% to 380m

  • 2Q Guide +14-21% to 3.35-3.55bn (est 3.3bn), EPS +21-36% to 3.29-3.72 (est 3.21)

  • “remainder of 2026 is set up to be stronger than we anticipated just 90 days ago”, puts 1H +15% y/y but +18% ex MEMS divestiture (FY26 est +10.3%)

  • Confident in hitting FY27 targets implies double digit rev growth in FY26 and FY27, GM toward 60% plus, continued OpEx discipline, design wins going into prodn driving confidence

  • FY25 Data center >200m in both Indu and Comms infra, they expect to be >500m this year, systems cooling, power supply, board management and control,..

4Q25 3.35 vs 3.18 +5.3%, FY25 EPS 11.81 vs 13.09

  1. Feb 2, 2026, P=229.89, TTM EPS=11.81, P/E=19X

  2. Revs +7.2% to 3.34bn, GM 57.4% vs 57.5%, OM 34.6% vs 34.2%

  3. Auto +4.8% to 1.88bn, Indu +24% to 640m, Mobil +22.5% to 485m, Comms & other -18% to 334m

  4. 1Q Guidance: Revs +8% to +15% to 3.05-3.25bn, EPS +2% to +17% to 2.77-3.17