NXP Semiconductors vs Texas Instruments: Revenue, Profit and Business Model
NXP Semiconductors had $13.4B of annual revenue in FY2025. Texas Instruments had $17.7B of annual revenue in FY2025 and $5B of net income.
Latest financial snapshot
NXP Semiconductors
- Latest annual revenue
- $13.4B (FY2025)
- Net income
- Unavailable here
- Net margin
- —
- Revenue growth
- +0.5% a year, FY2022–FY2025
Texas Instruments
- Latest annual revenue
- $17.7B (FY2025)
- Net income
- $5B
- Net margin
- 28.3%
- Revenue growth
- +3.2% a year, FY2016–FY2025
Financial summary
NXP Semiconductors
NXP delivers robust operating cash flow and resilient gross profit margins. Consolidated annual revenue stood at $13.21 billion in 2022, $13.28 billion in 2023, $12.61 billion in 2024 during broad industrial inventory corrections, and reached $13.40 billion in 2025. Gross margins consistently exceed 56% to 58%, while operating margins remain resilient at 33% to 35%, reflecting disciplined pricing and cost controls. Annual net income consistently exceeds $2.6 billion to $3.0 billion, enabling sustained capital returns through share buybacks and dividends.
Texas Instruments
TI's revenue fell from a $20.03 billion peak in 2022 to $15.64 billion in 2024 during an industry inventory correction, then recovered to $17.68 billion in 2025 with net income of $5.00 billion. The upturn accelerated in 2026: Q2 revenue reached $5.46 billion, operating profit rose 48% to $2.31 billion and net income rose 53% to $1.98 billion. With heavy fab spending past its peak, trailing 12-month free cash flow climbed to $6.5 billion from $1.8 billion a year earlier. TI guided Q3 2026 revenue to $5.65-$6.15 billion.
Revenue and profit by year
NXP Semiconductors
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $13.4B | — | — | +6.3% | |
| FY2024 | $12.6B | — | — | -5.0% | |
| FY2023 | $13.3B | — | — | +0.5% | |
| FY2022 | $13.2B | — | — | — |
Texas Instruments
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $17.7B | $5B | 28.3% | +13.0% | Source |
| FY2024 | $15.6B | $4.8B | 30.7% | -10.7% | Source |
| FY2023 | $17.5B | $6.5B | 37.2% | -12.5% | Source |
| FY2022 | $20B | $8.7B | 43.7% | +9.2% | Source |
| FY2021 | $18.3B | $7.8B | 42.4% | +26.9% | Source |
| FY2020 | $14.5B | $5.6B | 38.7% | +0.5% | Source |
| FY2019 | $14.4B | $5B | 34.9% | -8.9% | Source |
| FY2018 | $15.8B | $5.6B | 35.4% | +5.5% | Source |
| FY2017 | $15B | $3.7B | 24.6% | +11.9% | Source |
| FY2016 | $13.4B | $3.6B | 26.9% | — | Source |
Where the revenue comes from
NXP Semiconductors
- Core Semiconductors, Automotive Microcontrollers, Secure Identification & Edge Processing Platform Operations
~48% of Total Net Revenue
Direct software licensing, enterprise subscription access, platform usage fees, or primary transaction commissions derived from NXP Semiconductors N.V.'s flagship commercial solutions.
- Enterprise Solutions & Value-Added Services
~28% of Total Net Revenue
Custom enterprise deployments, premium capability tiers, specialized API integrations, and dedicated technical client support contracts.
- Ancillary Services & Strategic Ecosystem Billing
~14% of Total Net Revenue
Complementary service fees, partner ecosystem revenue sharing, financing fees, and transactional processing services.
- Professional Services, Maintenance & Support
~10% of Total Net Revenue
Onboarding implementation, specialized compliance consulting, customer training programs, and annual service-level agreement retainers.
Texas Instruments
- Analog
~78% (2024)
Power management and signal chain chips such as amplifiers, data converters, interface and isolation products. Analog revenue was about $12.16 billion of TI's $15.64 billion in 2024, and it led 2026 growth, rising 22% year over year in Q1 2026.
- Embedded Processing
~16% (2024)
Microcontrollers and processors, including C2000 real-time control MCUs, MSP430 low-power MCUs and automotive radar and processor chips. Revenue was about $2.56 billion in 2024 and grew 12% year over year in Q1 2026.
- Other (DLP, calculators, custom)
~6% (2024)
DLP display and light-steering products, education calculators such as the TI-84 Plus, and custom and legacy products.
Business model and strategy
NXP Semiconductors
How it makes money
NXP Semiconductors operates a hybrid manufacturing semiconductor business model (relying on both internal wafer fabrication plants and external foundries like TSMC).
Growth strategy
NXP grows by expanding semiconductor content per vehicle. As cars transition from internal combustion to electric and software-defined architectures, the dollar value of NXP silicon per car rises from approximately $400 in traditional combustion cars to over $1,200 in connected electric vehicles equipped with radar ADAS and intelligent battery management.
Competitive advantage
NXP Semiconductors commands an economic moat rooted in stringent automotive safety qualifications, multi-year product design-ins, and high switching costs. Automotive microcontrollers must comply with extreme temperature, vibration, and safety standards (AEC-Q100 and ISO 26262 ASIL-D), requiring three to five years of collaborative engineering before entering production.
Texas Instruments
How it makes money
Texas Instruments operates an integrated semiconductor design and manufacturing model, specializing in high-margin analog chips and embedded processing solutions. The company manufactures tens of thousands of differentiated products sold to over 100,000 global customers across the industrial, automotive, personal electronics, communications, and enterprise systems sectors.
Growth strategy
TI's strategy has four parts. First, manufacturing: it has spent heavily on 300mm analog fabs in Richardson (RFAB2), Lehi, Utah (LFAB, bought from Micron in 2021 for $900 million) and Sherman, Texas, where SM1 began production in December 2025, with support from the U.S. CHIPS Act.
Competitive advantage
TI's edge rests on owned, mostly 300mm analog manufacturing, a very broad catalog of long-lived parts, direct reach to customers through ti.com, and a cost structure that let it generate $6.5 billion of free cash flow in the 12 months to June 2026.
Questions about NXP Semiconductors vs Texas Instruments
Which company has higher revenue — NXP Semiconductors N.V. or Texas Instruments Inc.?
NXP Semiconductors N.V. had $13.4B (FY2025), while Texas Instruments Inc. had $17.7B (FY2025). By latest annual revenue, Texas Instruments Inc. is the larger business, with NXP Semiconductors N.V. showing a smaller revenue base.
What is the market cap of NXP Semiconductors N.V. vs Texas Instruments Inc.?
NXP Semiconductors N.V.'s market capitalisation stands at $60.0B, while Texas Instruments Inc.'s is $236.0B. Texas Instruments Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to NXP Semiconductors N.V..
How does revenue per employee compare for NXP Semiconductors N.V. and Texas Instruments Inc.?
NXP Semiconductors N.V. has $394k / employee in revenue per employee, while Texas Instruments Inc. has $536k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do NXP Semiconductors N.V. and Texas Instruments Inc. make money?
NXP Semiconductors N.V. and Texas Instruments Inc. generate revenue in fundamentally different ways. NXP Semiconductors N.V.: NXP Semiconductors operates a hybrid manufacturing semiconductor business model (relying on both internal wafer fabrication plants and external foundries like TSMC). Texas Instruments Inc.: Texas Instruments operates an integrated semiconductor design and manufacturing model, specializing in high-margin analog chips and embedded processing solutions.
Which company is valued higher relative to revenue — NXP Semiconductors N.V. or Texas Instruments Inc.?
On a price-to-sales (P/S) basis, NXP Semiconductors N.V. trades at 4.5x P/S and Texas Instruments Inc. at 13.3x P/S. Texas Instruments Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to NXP Semiconductors N.V.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is NXP Semiconductors N.V. bigger than Texas Instruments Inc.?
By last reported revenue, Texas Instruments Inc. ($17.7B (FY2025)) is the larger company compared to NXP Semiconductors N.V. ($13.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the NXP Semiconductors vs Texas Instruments overview