NXP Semiconductors (NXPI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $3.18 billion, up 12.2% year-over-year, with broad-based growth led by automotive and industrial IoT.

• Non-GAAP EPS was $3.05, $0.08 above guidance midpoint; GAAP EPS was $4.43, boosted by a $627 million gain from the MEMS Sensors business sale.

• Net income attributable to stockholders was $1,122 million, up 129% year-over-year.

• Strategic growth drivers in auto and industrial IoT grew 18% year-over-year, representing one-third of Q1 revenue.

• Significant product launches and collaborations in automotive processors and edge AI supported growth.

Financial highlights

• Non-GAAP gross margin was 57.1%; GAAP gross margin was 56.2%.

• Non-GAAP operating margin was 33.1%; GAAP operating margin was 47.3% due to the MEMS Sensors gain.

• Cash flow from operations was $793 million; non-GAAP free cash flow was $714 million (22% of revenue).

• Net debt at quarter-end was $8.02 billion, with $3.71 billion in cash and equivalents.

• Returned $358 million to shareholders via $256 million dividends and $102 million share repurchases.

Outlook and guidance

• Q2 2026 revenue guidance: $3.35–$3.55 billion, up 14–21% year-over-year and 5–12% sequentially.

• Non-GAAP gross margin expected at 57.5–58.5%; operating margin at 33.8–35.6%; EPS at $3.29–$3.72.

• Double-digit revenue growth targeted for both 2026 and 2027, with gross margin expanding toward 60%+.

• Management expects momentum to accelerate through 2026, with continued focus on disciplined investment and portfolio optimization.

• Liquidity remains strong, with $6.71 billion available including the revolving credit facility.