NXP Semiconductors (NXPI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $3.786B, up 19.3% YoY and 8% sequentially; non-GAAP operating margin was 37.1% and non-GAAP EPS was $4.20.

• Growth spanned regions and most end markets, led by automotive, Industrial & IoT, and communications infrastructure; Mobile declined YoY.

• Software-defined vehicles, industrial physical AI and data-center infrastructure are structural growth drivers; management expects double-digit revenue growth in 2027.

Financial highlights

• GAAP gross profit was $2.189B and operating income was $1.228B; GAAP gross and operating margins were 57.8% and 32.4%, respectively.

• Non-GAAP gross profit was $2.217B at 58.6% margin; non-GAAP operating income was $1.406B at 37.1% margin.

• GAAP net income attributable to stockholders was $884M and diluted EPS was $3.48; non-GAAP net income was $1.065B and diluted EPS was $4.20.

• Operating cash flow was $1.256B; net capital expenditures were $50M and non-GAAP free cash flow was $1.206B, or 31.9% of revenue.

Outlook and guidance

• Q4 revenue guidance is $3.75B-$3.95B, with midpoint of $3.85B, up 15% YoY and 2% sequentially; non-GAAP EPS guidance is $4.14-$4.58.

• Q4 non-GAAP gross margin guidance is 58.5%-59.5% and operating margin 36.6%-38.3%; non-GAAP operating expenses are expected at $830M ±$10M.

• 2027 revenue is expected to grow at a double-digit rate, with gross margin reaching 60%; operating expenses are expected near 23% of revenue in H1 and below 23% in H2.

• Long-term targets include high-single-digit organic revenue growth, gross margin above 60%, and doubling 2024 non-GAAP EPS by 2030+; 2024-2027 revenue CAGR outlook is 6%-10%.