NXP Semiconductors (NXPI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $3.5 billion, up 19–19.5% year-over-year, with growth across all end markets and regions.

• Non-GAAP operating margin was 35.1%, and non-GAAP EPS was $3.61, both exceeding guidance midpoints.

• Growth was driven by software-defined vehicles, electrification, industrial edge processing, connectivity, and expanding data center and AI-enabled platforms.

• Company-specific growth drivers grew in the mid-20% range year-over-year, representing about one-third of Q2 revenue.

• AI adoption at the edge is accelerating, supporting leadership in automotive, industrial, and robotics markets.

Financial highlights

• Q2 2026 revenue: $3.5 billion, up 19–19.5% year-over-year and 10% sequentially.

• Non-GAAP gross margin: 58.0%; GAAP gross margin: 57.3%.

• Non-GAAP operating profit: $1.23 billion, up 31% year-over-year; operating margin: 35.1%.

• Non-GAAP EPS: $3.61; GAAP EPS: $3.02.

• Free cash flow: $791 million in Q2 (22–23% of revenue); trailing 12-month free cash flow: $2.8 billion (21% of revenue).

Outlook and guidance

• Q3 2026 revenue guidance: $3.65–$3.85 billion, up 15–21% year-over-year and 7–10% sequentially.

• Non-GAAP gross margin expected at 58.0–59.0%; operating margin at 36.0–37.6%.

• Q3 non-GAAP EPS expected at $3.89–$4.32.

• All regions and end markets expected to grow sequentially in Q3.

• Year-to-date revenue at Q3 midpoint: $10.4 billion, up 17% versus 2025.