NXP Semiconductors N.V. (NXPI) Earnings

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Sep 2026upcoming

Next quarter

Reports Oct 27, 2026, after the close.

Consensus is $3.77 EPS for Sep 2026 across 7 estimates, ranging $3.69 to $3.92.

NXPI Jun 2026

Reported Jul 28, 2026

: 1.25%
: -7.00%

: $3.20
: $3.24
: —
: —

Highlights

Revenue: Q2 revenue was $3.50 billion, up 19.5% year over year and 9.9% sequentially, with growth across all four end markets and all regions.
EPS: Reported EPS was $3.24 versus consensus of $3.20, a 1.25% beat; the release reported GAAP diluted EPS of $3.02 and non-GAAP diluted EPS of $3.61.
End markets: Industrial & IoT revenue rose 38.3% year over year to $755 million, Communications Infrastructure & Other increased 41.3% to $452 million, and Automotive grew 12.1% to $1.94 billion.
Margin expansion: GAAP gross margin increased to 57.3% from 53.4% a year ago, while non-GAAP operating margin rose to 35.1% from 32.0%, helped by volume, mix, factory utilization and manufacturing efficiencies.
Cash generation: Operating cash flow was $860 million and non-GAAP free cash flow was $791 million, or 22.6% of revenue, versus $696 million of free cash flow in Q2 2025.
Third-quarter outlook: NXP guided to revenue of $3.65 billion-$3.85 billion, with a $3.75 billion midpoint implying 7% sequential and 18% year-over-year growth; non-GAAP EPS is expected at $3.89-$4.32, or $4.11 at the midpoint.
Capital structure: NXP repaid $750 million of notes during the quarter, reducing net debt to $7.75 billion from $8.02 billion at the prior quarter-end and net financial leverage to 1.5x from 1.7x.
Capital returns: The company returned $360 million in Q2, comprising $256 million of dividends and $104 million of buybacks; it repurchased an additional $32 million of shares after quarter-end through July 24.

Analysis

NXP’s second quarter was a broad-based recovery and acceleration print, with revenue of $3.50 billion up 19.5% from Q2 2025’s $2.93 billion and 9.9% from Q1 2026’s $3.18 billion. Reported EPS of $3.24 modestly exceeded the $3.20 consensus, a 1.25% beat. The release shows GAAP diluted EPS of $3.02, up from $1.75 a year ago but below Q1’s $4.43, which included a $627 million gain on the MEMS Sensors divestiture. Non-GAAP EPS was $3.61, up 33% year over year and 18% sequentially.

The defining feature was improving operating leverage alongside demand growth. All end markets expanded year over year, led by Industrial & IoT and Communications Infrastructure & Other, while Automotive remained the largest business at $1.94 billion. GAAP gross margin rose 390 basis points year over year to 57.3%, and non-GAAP operating margin increased to 35.1% from 32.0%. Cash generation also strengthened, with $791 million of free cash flow and lower leverage after $1.25 billion of year-to-date debt repayment. Management extended the momentum into Q3, guiding to $3.75 billion of revenue and $4.11 of non-GAAP EPS at the midpoint.

Broad-based revenue growth

Revenue growth was unusually wide for NXP: every end market and region increased year over year, and sequential growth was recorded in three of four end markets. The company attributed the gains primarily to processors and mixed-signal products, with distributor demand particularly strong.

Automotive: Revenue was $1.94 billion, up 12.1% year over year and 8.8% sequentially, predominantly driven by processor growth.
Industrial & IoT: Revenue reached $755 million, up 38.3% year over year and 20.2% sequentially, with strong processor and mixed-signal demand.
Communications Infrastructure & Other: Revenue rose 41.3% year over year and 18.9% sequentially to $452 million, predominantly on processor growth.
Mobile: Revenue increased 6.0% year over year to $351 million, but declined 10.2% sequentially as processor revenue weakened.
Channels and regions: Distributor revenue increased 26.7% year over year to $2.07 billion, versus 9.4% growth in direct revenue to $1.38 billion. China revenue rose 25.5%, the Americas 34.0%, APAC excluding China 13.6%, and EMEA 8.9%.

Margin and earnings leverage

The quarter showed stronger profitability as higher volumes improved factory utilization and manufacturing cost efficiency, while operating expenses grew more slowly than revenue. The year-over-year comparison was also helped by restructuring charges in Q2 2025, but the sequential non-GAAP improvement was primarily operational.

Gross margin: GAAP gross margin rose to 57.3% from 53.4% a year ago and 56.2% in Q1. Non-GAAP gross margin was 58.0%, up from 56.5% a year ago and 57.1% sequentially.
Operating profit: GAAP operating income was $1.07 billion, up 56% year over year but down 29% sequentially because Q1 included the MEMS Sensors divestiture gain. Non-GAAP operating income rose 31% year over year to $1.23 billion and 17% sequentially.
Operating expenses: GAAP operating expenses increased 5.7% year over year to $926 million, but declined to 26.5% of revenue from 29.9%. R&D rose 5.4% to $604 million, while SG&A increased 4.7% to $291 million.
Earnings: GAAP net income attributable to stockholders was $767 million versus $445 million a year ago and $1.12 billion in Q1. Non-GAAP net income was $918 million, up 33% year over year and 19% sequentially.

Third-quarter acceleration

Management’s Q3 outlook points to continued sequential acceleration rather than a pause after the strong first half. The midpoint also implies further margin expansion, with non-GAAP operating margin guided above the 35.1% achieved in Q2.

Revenue: Guidance is $3.65 billion-$3.85 billion, with a $3.75 billion midpoint representing 7% sequential growth and 18% year-over-year growth.
Profitability: Non-GAAP gross margin is guided to 58.5% at the midpoint, versus 58.0% in Q2. Non-GAAP operating margin is expected at 36.9%, compared with 35.1% in Q2.
EPS: Non-GAAP diluted EPS is expected at $3.89-$4.32, with a $4.11 midpoint; GAAP diluted EPS is guided to $3.21-$3.64, or $3.43 at the midpoint.
Growth drivers: Management highlighted Software-Defined Vehicles and Physical AI as company-specific drivers, with Data Center emerging as an additional growth engine.

Cash flow and deleveraging

NXP converted the stronger operating result into substantial cash while continuing to fund strategic capacity and return capital. Debt reduction was the main use of financing cash flow during the first half.

Free cash flow: Q2 operating cash flow was $860 million and net property, plant and equipment capex was $69 million, producing $791 million of non-GAAP free cash flow. Trailing-twelve-month free cash flow was $2.81 billion, or 21% of revenue.
Debt reduction: Total debt was $10.98 billion at quarter-end, down from $11.72 billion at Q1-end and $12.22 billion at December 2025. NXP used $750 million of cash to repay notes due June 2026.
Leverage: Gross financial leverage declined to 2.1x from 2.4x a year ago, while net leverage fell to 1.5x from 1.8x a year ago.
Liquidity: Cash was $3.22 billion, and together with the undrawn $3.0 billion revolving credit facility NXP had $6.22 billion of available liquidity.

Capital returns

Capital allocation remained meaningful despite debt repayment and investments in manufacturing capacity. The quarterly dividend was unchanged at $1.014 per share.

Shareholder distributions: NXP paid $256 million in dividends and repurchased $104 million of shares during Q2, returning $360 million or 45.5% of quarterly non-GAAP free cash flow.
Year-to-date returns: Through the first half, dividends totaled $512 million and share repurchases totaled $206 million.
Post-quarter buybacks: The company repurchased an additional $32 million of shares between June 29 and July 24 through a 10b5-1 program.
Capacity investment: NXP contributed $243 million during the first half to support VSMC capacity infrastructure and had contributed $1.10 billion cumulatively by June 28.

NXP Semiconductors N.V.

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