NXP Semiconductors N.V. stock research
FY2024 Q4
NXP Semiconductors N.V. (NXPI) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was lower year over year but stable sequentially. Gross margin weakened from both the preceding quarter and the year-ago period, reflecting a larger proportional decline in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue was lower year over year but stable sequentially. Gross margin weakened from both the preceding quarter and the year-ago period, reflecting a larger proportional decline in gross profit relative to revenue.
- The decline in gross margin was driven by gross profit falling faster than revenue, as cost of revenue did not decrease proportionally. The strongest observable driver is the relative movement of cost of revenue, which remained unchanged sequentially despite lower revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.9%
Gross profit
$1.7B
Revenue
$3.1B
Cost of revenue
$1.4B
Quarter-over-quarter change
-3.5 pts
Year-over-year change
-2.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $3.1B | $1.8B | $1.3B | 57.0% |
| Jun 30, 2024 | $3.1B | $1.8B | $1.3B | 57.3% |
| Sep 29, 2024 | $3.3B | $1.9B | $1.4B | 57.4% |
| Dec 31, 2024 | $3.1B | $1.7B | $1.4B | 53.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-3.5 pts
Year-over-year change
Dec 31, 2023
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by gross profit falling faster than revenue, as cost of revenue did not decrease proportionally. The strongest observable driver is the relative movement of cost of revenue, which remained unchanged sequentially despite lower revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross margin also weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its stability despite declining revenue was the primary factor in margin compression.