NXP Reports Third-Quarter Revenue of $3.79 Billion, Adds $5 Billion Buyback

The Tip Desk · October 30, 2026 · 2 min read

The semiconductor maker posted third-quarter 2026 revenue of $3.79 billion and non-GAAP diluted earnings of $4.20 a share and guided fourth-quarter revenue to $3.75 billion to $3.95 billion.

NXP Semiconductors (NXPI) reported third-quarter 2026 revenue of $3.79 billion, up 19 percent year-on-year.

The sequential increase was 8 percent, after a 10 percent sequential rise in the second quarter. Year-on-year growth held at 19 percent, matching the prior quarter’s rate.

GAAP gross margin was 57.8 percent and GAAP operating margin was 32.4 percent. Non-GAAP gross margin was 58.6 percent and non-GAAP operating margin was 37.1 percent. GAAP diluted earnings were $3.48 a share; non-GAAP diluted earnings were $4.20 a share.

President and Chief Executive Officer Rafael Sotomayor said performance was driven by accelerating contributions from company-specific growth drivers in automotive and industrial as well as continued momentum in data center infrastructure.

Automotive, the largest end market, generated $2.07 billion, up 13 percent from a year earlier. Industrial & IoT revenue was $802 million, up 39 percent year-on-year. Communications Infrastructure & Other revenue was $503 million, up 54 percent year-on-year. Mobile revenue was $411 million, down 4 percent from a year earlier.

Cash flow from operations was $1.26 billion. With net capital expenditures of $50 million, non-GAAP free cash flow was $1.21 billion, or 31.9 percent of revenue, compared with $791 million, or 22.6 percent of revenue, in the second quarter. Capital return was $359 million, or 29.8 percent of third-quarter non-GAAP free cash flow. Dividends paid were $256 million and share buybacks were $103 million.

Cash and cash equivalents were $3.94 billion at quarter-end. Gross financial leverage was 2.0 times trailing twelve-month adjusted EBITDA and net financial leverage was 1.3 times.

During the quarter NXP announced that BMW Group would deploy Trimension Ultra-Wideband ranging and radar solutions across its fleet, starting with selected 2026 vehicle programs. The company broke ground on an assembly and test site expansion in Malaysia, and VSMC, the joint venture with Vanguard International Semiconductor, opened its first 300mm fab in Singapore.

After quarter-end, the board authorized a $5 billion share repurchase program in addition to $1.3 billion remaining under the prior authorization.

For the fourth quarter of 2026, NXP guides revenue of $3.75 billion to $3.95 billion, implying a sequential range of minus 1 percent to 4 percent and year-on-year growth of 12 percent to 18 percent. Non-GAAP operating margin is guided at 36.6 percent to 38.3 percent and non-GAAP diluted earnings at $4.14 to $4.58 a share.

Sotomayor said the company sees opportunities as software-defined vehicles drive demand for next-generation solutions, while data center infrastructure and Trusted Physical AI applications create new vectors for long-term growth.