NXP Semiconductors (NXPI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $3.18 billion, up 12–12.2% year-over-year, with broad-based growth across all end markets, especially automotive and industrial IoT.

• Net income attributable to stockholders was $1,122 million (GAAP), up from $490 million in Q1 2025; non-GAAP net income was $774 million.

• Non-GAAP EPS was $3.05, $0.08 above guidance midpoint; GAAP EPS was $4.43.

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

• Completed sale of MEMS Sensors business for $878 million, resulting in a one-time gain of $627 million and boosting operating income.

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%.

• Cash flow from operations was $793 million; non-GAAP free cash flow was $714 million (22–22.4% of revenue).

• Cash and cash equivalents at quarter-end were $3.7 billion; net debt was $8.02 billion.

• Returned $358 million to shareholders in Q1 via $256 million in dividends and $102 million in 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%; non-GAAP operating margin at 33.8–35.6%.

• Non-GAAP diluted EPS guidance: $3.29–$3.72.

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

• Guidance subject to risks and uncertainties, including market demand, supply chain, and geopolitical factors.