NXPI
NXP Semiconductors N.V.
Technology · Semiconductors · Netherlands · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability metrics — 24.8% operating margin, 16.5% net margin, and 7.6% return on assets — and a well-covered dividend anchored the mid-range composite score.
- The near-floor growth score driven by declining revenue, net income, and EPS in FY2025 meaningfully constrained the overall rating.
- The zero theme score, despite dual macro theme assignments to EV & EV Infrastructure and Semiconductors, further limited the composite from reaching a higher tier.
Why Not Higher
- Broad-based annual contraction — revenue down 2.7%, net income down 19.5%, and diluted EPS down 18.3% — resulted in a near-floor growth score that weighed heavily on the composite.
- The theme factor scored zero despite active macro theme assignments, preventing NXPI from capturing additional composite score that a positive theme score would have provided.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from $12,614,000,000 in FY2024 to $12,269,000,000 in FY2025, a drop of 2.7%. Net income fell from $2,510,000,000 in FY2024 to $2,021,000,000 in FY2025, a decline of 19.5%, while diluted EPS contracted from $9.73 in FY2024 to $7.95 in FY2025, a decrease of 18.3%.
The model penalized NXPI heavily for broad-based contraction across revenue, earnings, and per-share metrics between FY2024 and FY2025, resulting in a near-floor score for this factor.
In FY2025, NXPI posted an operating margin of 24.8%, a net margin of 16.5%, and a return on assets of 7.6%, reflecting solid earnings generation relative to both revenue and the asset base.
The model rewarded these healthy margin and return figures, recognizing that despite top-line pressure, NXPI retained meaningful profitability at both the operating and net levels in FY2025.
In FY2025, NXPI carried a debt-to-equity ratio of 1.1 and an interest coverage ratio of 6.5, against a total asset base of $26,560,000,000.
The model recognized a moderate leverage position and adequate interest coverage, suggesting the company can service its debt obligations, while the meaningful asset base provides a degree of balance-sheet stability.
Quarterly revenue rose from $2,926,000,000 in 2025Q2 to $3,335,000,000 in 2025Q4 before easing to $3,181,000,000 in 2026Q1. Operating income followed a similar pattern, climbing from $687,000,000 in 2025Q2 to $744,000,000 in 2025Q4, then surging to $1,505,000,000 in 2026Q1. Net income also accelerated sharply to $1,122,000,000 in 2026Q1 after ranging between $445,000,000 and $631,000,000 in the prior three quarters.
The model rewarded the strong sequential build in both operating and net income through the most recent quarter, with the 2026Q1 spike in profitability metrics signaling meaningful near-term earnings acceleration.
Dividends per share rose from $3.38 in FY2022 to $4.056 in FY2023 and held at $4.056 through FY2024 and FY2025, while the dividend payout ratio stood at 50.7% of net income in FY2025.
The model rewarded the established and sustained dividend at an elevated per-share level alongside a payout ratio that reflects meaningful income return to shareholders without appearing unsustainably high relative to earnings.
NXPI is assigned to the macro themes of EV & EV Infrastructure and Semiconductors.
Although NXPI carries two actively tracked macro theme assignments, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
NXP Semiconductors earned a composite score of 58.8/100 with a Medium risk rating and a Research Further label, reflecting a company that maintains solid profitability and a well-established dividend even as annual revenue and earnings contracted in FY2025. Revenue fell 2.7% year-over-year to $12,269,000,000 and net income dropped 19.5% to $2,021,000,000, yet the company sustained a 24.8% operating margin and 16.5% net margin in the same period. Recent quarterly data shows a sharp acceleration in operating and net income through 2026Q1, suggesting near-term momentum may be improving despite the full-year headwinds. The zero score on the theme factor, despite assignments to EV & EV Infrastructure and Semiconductors, weighed on the composite alongside the weak annual growth metrics.
Plain English
NXP makes solid profits and pays a steady dividend, but its sales and earnings shrank last year — though the most recent quarter showed a big jump in profits, which is a reason to keep watching.
Bull Case vs. Bear Case
Bull Case
- Operating income surged to $1,505,000,000 and net income reached $1,122,000,000 in 2026Q1, a sharp acceleration from the prior three quarters, signaling meaningful near-term earnings momentum.
- NXPI maintained a 24.8% operating margin and 16.5% net margin in FY2025, demonstrating resilient profitability even under top-line pressure.
- Dividends per share have held at $4.056 since FY2023 with a payout ratio of 50.7%, reflecting a sustained and well-covered income return to shareholders.
Bear Case
- Revenue declined 2.7% to $12,269,000,000 and net income fell 19.5% to $2,021,000,000 in FY2025, representing broad-based annual contraction across top and bottom lines.
- Diluted EPS contracted 18.3% from $9.73 in FY2024 to $7.95 in FY2025, compressing per-share value for shareholders.
- Despite being assigned to the EV & EV Infrastructure and Semiconductors macro themes, the theme factor scored zero under the model's current methodology, limiting the composite score.
What Could Change the Picture
Bullish Triggers
- Sustained sequential improvement in quarterly revenue and a continuation of the 2026Q1 spike in operating and net income would suggest the annual contraction was a trough rather than a trend.
- A return to year-over-year revenue and EPS growth would directly address the near-floor growth score that most weighed on the composite.
Bearish Triggers
- If the 2026Q1 profitability surge proves one-time rather than structural, the underlying annual earnings decline trend could reassert itself.
- A deterioration in the debt-to-equity ratio above 1.1 or a weakening of the 6.5x interest coverage ratio would raise concerns about balance-sheet resilience.
Risk Profile
Medium RiskNXPI carries a moderate leverage position with a debt-to-equity ratio of 1.1 and an interest coverage ratio of 6.5 against a $26,560,000,000 asset base, suggesting manageable debt service capacity. However, the volatility in quarterly net income — ranging from $445,000,000 to $1,122,000,000 across the last four quarters — introduces uncertainty about the durability of the recent profitability acceleration.
Key Catalysts to Watch
The sharp rise in operating income to $1,505,000,000 and net income to $1,122,000,000 in 2026Q1 represents a potential inflection point worth monitoring for confirmation in subsequent quarters.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.