NXP Semiconductors NV

nxp.com

What Do They Do?

Sells automotive chips and system software to companies in the vehicle industry, plus semiconductors for industrial and connected devices, mobile products, and communications infrastructure.

How Do They Make Money?

NXP earns money from sales of semiconductor products to distributors and direct customers; most product sales are completed when the products ship.

FY2025 revenue

Who Are Their Customers?

NXP sells directly through sales offices and through independent distributors, which resell products to end customers or their subcontract manufacturers. Its customers span automotive, industrial and connected-device, and mobile and communications markets.

Customers above 10% of revenue, FY2025

of revenue from one customer

FY2023: 21% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 16 cents of every revenue dollar as net income in FY2025 and turned 20 cents into free cash flow.

Operating income, FY2025

25% of revenue

▼ −11% vs FY2024 ($3.4B, 27%)

Net income, FY2025

16% of revenue

▼ −19% vs FY2024 ($2.5B, 20%)

Free cash flow, FY2025

20% of revenue

▲ +18% vs FY2024 ($2.1B, 16%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 28, 2026

Revenue: ▲ +19%; vs $2.9B in Q2 FY2025
Net income: ▲ +72%; vs $445M in Q2 FY2025

Growing. Revenue grew 11% in 4 years, from $11.1B in FY2021 to $12.3B in FY2025, about 3% a year.

More vehicle software The latest report adds system-solution platforms with safety-case support and software for software-defined vehicles to a product description that earlier focused on semiconductor devices.

Who Do They Compete With?

Competes with Analog Devices, Broadcom, Infineon Technologies, Microchip Technology, Qualcomm, Renesas Electronics, STMicroelectronics, and Texas Instruments

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