NXPI NXP Semiconductors N.V.

Overview and Growth

NXP Semiconductors N.V. generated $12.27B of revenue in fiscal 2025, with net income of $2.02B and an operating cash inflow of $2.82B. The $12.27B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $12.61B in fiscal 2024, revenue decreased 2.7%, a top-line contraction that reduced operating scale. The company reported diluted EPS of $7.95, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 18.3% decrease from fiscal 2024 diluted EPS of $9.73. Revenue equaled 0.46x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $6.72B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 54.7% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $3.05B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 24.8% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $2.02B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 16.5% margin after operating costs and the remaining recognized items. The company recognized $525.00M of income tax for the period, completing the transition from pretax income to net income. Return on period-end equity was 19.3%, relating annual net income to the equity capital on the balance sheet. Return on period-end assets was 7.6%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The company held $26.56B of assets against $16.11B of liabilities and $10.45B of equity, revealing how the asset base was financed. The near-term balance sheet paired $7.94B of current assets with $3.88B of current liabilities at the reporting date. The current ratio was 2.05x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $3.27B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 84.2% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $12.22B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 1.17x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 46.0% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 60.7% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 12.3%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 8.9% from $24.39B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $2.82B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.4x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $397.00M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 14.1%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $2.42B of positive free cash flow for the period. The free-cash-flow margin was 19.7%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 9.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.