EarningsQ2 2026 Earnings Report

NXP Semiconductors (1NXPI) Q2 2026 Earnings Report

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Previous Report: Q1 2026

IT:1NXPI Q2 2026 EPS Results

Actual EPS€3.12

Consensus EPS€3.04

Beat/MissBeat by +€0.08

One Year Ago EPS€2.35

IT:1NXPI Q2 2026 Revenue Results

Actual Revenue€3.03B

Expected Revenue€3.00B

Beat/MissBeat by +€26.66M

YoY Revenue Growth+19.48%

Earnings Announcement Details

QuarterQ2 2026

Date07/28/2026

TimeAfter Close

Conference CallTuesday, July 28, 2026

IT:1NXPI Upcoming Earnings

NXP Semiconductors's next earnings date is estimated for October 27, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

IT:1NXPI Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 28, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed strong, broad-based revenue and margin outperformance with structural margin expansion, healthy free cash flow and an accelerating data center and physical AI opportunity. Management acknowledged selective pricing, input-cost inflation and lengthening lead times as near-term headwinds but provided confident Q3 guidance ($3.75B midpoint) and multi-quarter visibility, a growing design funnel (~$1.5B) and improved operational metrics. On balance, positive operational and financial momentum outweigh the manageable lowlights and risks.

Company Guidance

NXP guided third‑quarter revenue of $3.75 billion ± $100 million (Bill: ~18% year‑over‑year and +7% sequentially; Rafael: +21% year‑over‑year when adjusted for the MEMS sensor sale), with all regions and end markets expected to be up sequentially; by segment they expect automotive to rise low‑double‑digits YoY and mid‑single‑digits sequentially (high‑teens YoY ex‑MEMS), industrial & IoT to grow in the high‑30% range YoY and mid‑single‑digits sequentially, mobile to be down mid‑single‑digits YoY but up mid‑teens sequentially, and communications infrastructure to be about +50% YoY and up high‑single‑digits vs Q2. Financial guidance includes non‑GAAP gross margin of 58.5% ±50 bps (up ~150 bps YoY, +50 bps sequentially), non‑GAAP operating expenses of $810 million ± $10 million (implying ~36.9% non‑GAAP operating margin at the midpoint), non‑GAAP financial expenses of ~$85 million, an 18% tax rate, $15 million of noncontrolling interest, and non‑GAAP EPS of $4.11 at the midpoint. Cash uses for Q3 are expected to include ~3% of revenue in capital expenditures, a VSMC capacity access fee of $70 million plus $80 million equity into VSMC and $30 million equity into ESMC (bringing cumulative JV investments to about $2.4 billion, ~70% of the planned commitment).

Record Revenue and Strong YoY Growth

Q2 revenue of $3.5 billion, up 19% year-over-year and 10% sequentially; company delivered results above the midpoint of guidance.

Robust Profitability and Margin Expansion

Non-GAAP operating margin ~35.1% (35% cited), non-GAAP gross margin 58% (expanded ~150 bps YoY) and non-GAAP EPS of $3.61 (+$0.11 above guidance); non-GAAP operating profit $1.23 billion, up 31% YoY.

Strong Free Cash Flow and Capital Returns

Q2 non-GAAP free cash flow of $791 million (~23% of revenue); trailing 12-month FCF ~$2.8 billion (21% of revenue); returned $360 million to shareholders in Q2 ($256M dividends, $104M buybacks).

Broad-Based End-Market Strength

All end markets and regions grew YoY. Automotive revenue $1.94B up 12% YoY (adjusted +17% ex-MEMS sale), Industrial & IoT $755M up 38% YoY, Communications Infrastructure $452M up 41% YoY, Mobile $351M up 6% YoY.

Company-Specific Growth Drivers and AI Momentum

Company-specific growth drivers grew in the mid-20% range and represented ~1/3 of Q2 revenue; automotive accelerated drivers (SDV, electrification, connectivity) strong (auto drivers grew ~22% YoY in Q2 and represented ~47% of auto revenue). AI-enabled processors estimated to be ~15% of industrial & IoT processor revenue in 2026 (more than double from prior year).

Data Center Franchise Acceleration

Data center exposure quantified: ~ $200M revenue in 2025 and expected to exceed $500M in 2026; focus on control-plane AI (Layerscape/SmartNIC and rack-level monitoring/control) with customer ramps and multi-year platform commitments.

Expanding Design Funnel and Backlog Signals

Kinara/physical-AI funnel grew to over $1.5 billion and covers 200+ unique customers; book-to-bill >1, backlog increasing with signals extending ~18 months, and distribution backlogs following similar patterns.

Improving Working Capital and Operational Metrics

Cash conversion cycle improved to 129 days (from 140), inventory days improved to 156 (from 165), receivables 33 days, payables 60 days; generated $860M operating cash flow in Q2.

IT:1NXPI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 27, 2026	2026 (Q3)	3.55 / -	2.692	―
Jul 28, 2026	2026 (Q2)	3.04 / 3.12	2.354	32.72% (+0.77)
Apr 28, 2026	2026 (Q1)	2.58 / 2.64	2.285	15.53% (+0.35)
Feb 02, 2026	2025 (Q4)	2.87 / 2.90	2.752	5.35% (+0.15)
Oct 27, 2025	2025 (Q3)	2.70 / 2.69	2.986	-9.86% (-0.29)
Jul 21, 2025	2025 (Q2)	2.32 / 2.35	2.769	-15.00% (-0.42)
Apr 28, 2025	2025 (Q1)	2.25 / 2.28	2.804	-18.52% (-0.52)
Feb 03, 2025	2024 (Q4)	2.72 / 2.75	3.211	-14.29% (-0.46)
Nov 04, 2024	2024 (Q3)	2.97 / 2.99	3.202	-6.76% (-0.22)
Jul 22, 2024	2024 (Q2)	2.77 / 2.77	2.969	-6.71% (-0.20)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed