NXP Semiconductors N.V. (NXPI) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 1, 2027 — estimated from last year’s reporting date.

Consensus is $4.03 EPS for Dec 2026 across 8 estimates, ranging $3.93 to $4.25.

NXPI Sep 2026

Reported Oct 27, 2026 · after the close

: 0.79%
: -0.71%

: $3.78
: $3.75
: —
: $3.79B

Reported results

: $3.79B; from $3.17B
: 57.82%; from 56.32%
: $1.23B; from $893.00M
: 32.44%; from 28.14%
: $884.00M; from $631.00M
: $3.48; from $2.48

Highlights

Revenue and earnings: Q3 revenue was $3.786 billion, up 19.3% year over year and 8.3% sequentially; GAAP diluted EPS was $3.48 and non-GAAP EPS was $4.20.
EPS comparison: The supplied consensus comparison lists EPS of $3.78 against a reported $3.75, a 0.8% miss. NXP’s release separately reports GAAP diluted EPS of $3.48 and non-GAAP EPS of $4.20.
Profitability: Non-GAAP gross margin reached 58.6%, up 160 basis points year over year, while non-GAAP operating margin was 37.1%, up 330 basis points; both were quarterly records, as was non-GAAP EPS.
Automotive: Revenue crossed $2 billion for the first time, reaching $2.070 billion, up 12.7% year over year; management said growth was 17% excluding sensors and highlighted software-defined vehicle (SDV) content gains.
Industrial and communications: Industrial & IoT revenue rose 38.5% to $802 million, and Communication Infrastructure & Other grew 53.8% to $503 million; Mobile declined 4.4% to $411 million.
Data center: NXP expects 2026 data-center revenue to exceed its earlier $500 million outlook and now sees the business surpassing $1 billion in a couple of years.
Cash and capital return: Operating cash flow was $1.256 billion and free cash flow $1.206 billion. Q3 dividends and repurchases totaled $359 million; the board added a $5 billion buyback authorization to $1.3 billion remaining.
Outlook: Q4 revenue guidance is $3.75 billion–$3.95 billion, with non-GAAP EPS of $4.14–$4.58. For 2027, management expects double-digit revenue growth and gross margin of 60%.

Analysis

NXP’s Q3 was a broad-based growth and margin-expansion quarter. Revenue of $3.786 billion increased 19.3% year over year and 8.3% sequentially, slightly ahead of management’s outlook; the company said every end market and region grew year over year. Against the supplied consensus comparison, EPS of $3.75 was 0.8% below the $3.78 estimate. The release reports GAAP diluted EPS of $3.48, versus $2.48 a year earlier and $3.02 in Q2, and non-GAAP EPS of $4.20, up 35% year over year from $3.11. Non-GAAP operating margin rose to 37.1% from 33.8% a year ago and 35.1% last quarter.

The defining drivers were automotive content gains, rapid Industrial & IoT growth, and emerging data-center demand. Automotive revenue exceeded $2 billion for the first time, while Industrial & IoT grew 38.5% and communications infrastructure grew 53.8%; management attributed growth to company-specific product drivers rather than broad automotive restocking. Cash generation strengthened alongside results: free cash flow was $1.206 billion, up from $509 million a year ago. Q4 guidance calls for revenue of $3.75 billion–$3.95 billion and non-GAAP EPS of $4.14–$4.58. Management also outlined double-digit growth and 60% gross margin for 2027, alongside increased investment in capacity and a larger buyback authorization.

Growth and margins

Revenue growth translated into stronger profitability as higher volumes and improved factory utilization lifted margins. Operating leverage also helped: non-GAAP operating expenses were $810 million, or 21.4% of revenue, according to management. GAAP operating income increased 38% year over year to $1.228 billion and 15% sequentially.

Gross margin: GAAP gross margin was 57.8%, up from 56.3% in Q3 2025 and 57.3% in Q2 2026; non-GAAP gross margin was 58.6%, up from 57.0% and 58.0%, respectively.
Operating margin: GAAP operating margin reached 32.4%, versus 28.1% a year earlier and 30.6% last quarter. Non-GAAP operating margin was 37.1%, versus 33.8% and 35.1%.
Net income: GAAP net income attributable to stockholders rose 40% year over year to $884 million and 15% sequentially from $767 million.

Automotive and SDVs

Automotive was NXP’s largest end market and a central part of management’s growth narrative. Revenue was $2.070 billion, 12.7% above the year-ago quarter and 6.8% above Q2. Management said growth was 17% excluding the divested MEMS sensor business, driven by content gains despite a flattish vehicle-production environment.

SDV opportunity: SDV revenue was running above a $1.5 billion annualized rate; NXP remains on track for its $2 billion target in 2027. Management estimates next-generation vehicle architectures can carry two to three times the semiconductor content of current architectures.
Design wins and timing: TTTech Auto announced its S32K5 zonal platform across Volkswagen and Rivian; NXP also cited its first S32K5 humanoid-robotics design win. First China shipments are expected as early as Q1 2027, with larger S32K5 and S32N central-compute ramps expected in 2028.
Demand signals: Management reported no noticeable broad-based automotive restocking, but said visibility had improved, backlog extended further into 2027, and lead times had lengthened.

Industrial and data center

Industrial & IoT and communications infrastructure grew faster than automotive, broadening the sources of expansion. Management linked industrial demand to data centers, factory automation, healthcare, and rising AI content at the edge. It described data-center products as control-plane processors, networking, security, and related components rather than discrete power products.

Industrial & IoT: Revenue was $802 million, up 38.5% year over year and 6.2% sequentially. The industrial portion grew nearly 50% and represented about 70% of the end market; management said AI-enabled processors would make up about 15% of Industrial & IoT processor revenue in 2026, more than doubling from the prior year.
Data center: NXP now expects 2026 revenue to exceed its earlier $500 million outlook and sees the business above $1 billion in a couple of years. Management tied the opportunity to new product development, customer engagement, and demand for reliable control-plane computing.
Other end markets: Communication Infrastructure & Other revenue increased 53.8% to $503 million, driven by data center and secure cards. Mobile declined 4.4% to $411 million.

Cash and capital allocation

Cash generation strengthened as earnings rose and net capital expenditures remained modest. Management said the cash supports investment in products and manufacturing capacity as well as shareholder returns, while also noting that prior capital returns had been below its long-term target as it prioritized deleveraging and joint-venture investment.

Free cash flow: Operating cash flow of $1.256 billion less $50 million of net capital expenditures produced $1.206 billion of free cash flow, or 31.9% of revenue, versus $791 million in Q2 and $509 million a year ago.
Returns and authorization: Q3 shareholder returns were $359 million: $256 million in dividends and $103 million in share repurchases. The October authorization added $5 billion to the $1.3 billion remaining under the prior program, bringing total authorization to about $6.3 billion.
Balance sheet and investment: NXP ended the quarter with $3.943 billion of cash and $10.978 billion of debt; net leverage was 1.3x. It invested $218 million in VSMC and ESMC during Q3 and expects 2027 capital expenditures of about 5% of revenue, versus roughly 3% in Q4.

Q4 and 2027 outlook

The Q4 midpoint implies continued sequential growth and double-digit year-over-year expansion, with margin gains expected to continue. Management’s 2027 framework points to sustained growth and higher investment in new products and manufacturing; these are forward-looking targets rather than a detailed quarterly forecast.

Q4 revenue and EPS: Revenue guidance is $3.75 billion–$3.95 billion, with a midpoint of $3.85 billion, up 2% sequentially and 15% year over year (18% excluding sensors). Non-GAAP diluted EPS is guided to $4.14–$4.58, with a $4.36 midpoint.
Q4 margin: At the midpoint, non-GAAP gross margin is expected to be 59.0% and non-GAAP operating margin 37.5%. Management cited utilization in the mid-80% range and higher revenue as drivers.
2027 framework: Management expects double-digit revenue growth and gross margin of 60% during 2027, with utilization in the high-80% range. Operating expenses are expected to be about 23% of revenue in the first half and below 23% in the second half.

NXP Semiconductors N.V.

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