NXP Semiconductors authorizes $5B share buyback
Industrial & IoT revenue was $802 million, up 39% year over year; Communications Infrastructure & Other was $503 million, up 54%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
NXP Semiconductors N.V. (NXPI) reported third-quarter 2026 revenue of $3.786 billion, up 19% year over year. GAAP net income attributable to stockholders was $884 million, up 40%, and diluted GAAP earnings per share were $3.48, up 40%. Non-GAAP net income attributable to stockholders was $1.065 billion, up 35%, with diluted non-GAAP earnings per share of $4.20, up 35%.
Cash from operating activities was $1.256 billion and non-GAAP free cash flow was $1.206 billion. NXP returned $359 million through dividends and share repurchases during the quarter. In October, after quarter-end, the board authorized a $5 billion share repurchase program, in addition to $1.3 billion remaining under the prior authorization.
For fourth-quarter 2026, NXP guided to revenue of $3.75 billion to $3.95 billion and diluted EPS of $3.36 to $3.79 on a GAAP basis and $4.14 to $4.58 on a non-GAAP basis. NXP said this guidance consists of predictions and is subject to a wide range of known and unknown risks and uncertainties.
3 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.The board authorized an additional $5 billion share repurchase program. 8.1% of market cap
- Moderate pointThird-quarter revenue reached $3.786 billion, up 19% year over year.
- Moderate pointGAAP stockholder net income rose 40% to $884 million.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $3.786 billion
GAAP net income attributable to stockholders: $884 million
GAAP diluted earnings per share: $3.48 per share
+4 more
7 metrics
Revenue
$3.786 billion
Q3 2026; up 19% year over year
GAAP net income attributable to stockholders
$884 million
Q3 2026; up 40% year over year
GAAP diluted earnings per share
$3.48 per share
Q3 2026; up 40% year over year
Non-GAAP free cash flow
$1.206 billion
Q3 2026
Share repurchase authorization
$5 billion
Authorized by the board in October after quarter-end; $1.3 billion remained under the prior authorization
Fourth-quarter revenue guidance
$3.75 billion to $3.95 billion
Q4 2026
Fourth-quarter diluted EPS guidance
GAAP: $3.36 to $3.79 per share; non-GAAP: $4.14 to $4.58 per share
Q4 2026
Key Terms
Adjusted EBITDA, equity-accounted investees, Cash Conversion Cycle, Gross financial leverage
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA (Non-GAAP)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
equity-accounted investees financial
"Results relating to equity-accounted investees"
Equity-accounted investees are companies in which an investor holds a significant minority stake and can influence—but does not control—management decisions, so the investor records its share of the investee’s profits or losses on its own financial statements and adjusts the investment’s carrying value accordingly. Like being a meaningful partner in a neighborhood business where you help shape decisions but don’t run day-to-day operations, this accounting treatment affects reported earnings, balance-sheet totals and how investors assess value and risk.
Cash Conversion Cycle financial
"Cash Conversion Cycle"
A cash conversion cycle measures how many days it takes a company to turn money spent on goods into money received from customers — essentially the time between paying suppliers and collecting cash. Think of it as the gap between buying inventory and getting paid at the register; a shorter cycle means the business frees up cash faster, reducing borrowing needs and indicating more efficient operations, which matters to investors evaluating liquidity and financial health.
Gross financial leverage financial
"Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA"
Gross financial leverage is a measure of how much of a company’s capital comes from borrowed money compared with its own funds, usually expressed as a simple ratio of total debt (or total liabilities) to shareholders’ equity. For investors it signals how much risk the business carries from debt: like a person using a large loan to amplify returns, higher leverage can boost profits in good times but makes the company more vulnerable to rising interest costs, weaker sales, or sudden shocks.
Earnings Snapshot
Revenue: $3.786 billion · Guidance included
Q3 2026
Revenue
$3.786 billion
19% year over year
GAAP net income attributable to stockholders
$884 million
40% year over year
GAAP diluted earnings per share
$3.48 per share
40% year over year
Non-GAAP net income attributable to stockholders
$1.065 billion
35% year over year
Non-GAAP diluted earnings per share
$4.20 per share
35% year over year
Guidance
Q4 2026 revenue: $3.75 billion to $3.95 billion; GAAP diluted EPS: $3.36 to $3.79 per share; non-GAAP diluted EPS: $4.14 to $4.58 per share.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did NXPI report in Q3 2026?
NXPI reported Q3 2026 revenue of $3.786 billion, up 19% year over year. Automotive revenue was $2.070 billion, Industrial & IoT was $802 million, Mobile was $411 million, and Communications Infrastructure & Other was $503 million.
What is NXPI's Q4 2026 earnings guidance?
NXP guided to fourth-quarter 2026 revenue of $3.75 billion to $3.95 billion. Diluted EPS guidance is $3.36 to $3.79 on a GAAP basis and $4.14 to $4.58 on a non-GAAP basis.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 27, 2026
(Exact name of Registrant as specified in charter)
(State or other jurisdiction of incorporation) | ||||||||||||||
(Address of principal executive offices) (Zip code) | |||||||||||
| (I.R.S. employer identification number) | (Commission file number) | ||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||||||||
| NA | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol(s) | Number of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2026, NXP Semiconductors N.V. ("NXP") issued a press release regarding NXP’s financial results for its third
quarter 2026. A copy of the press release is attached as Exhibit 99.1.
The information contained in this Item 2.02, including the attached exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press release dated October 27, 2026 entitled: "NXP Semiconductors Reports Third Quarter 2026 Results". | ||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: October 27, 2026
| NXP Semiconductors N.V. | ||
| /s/ William J. Betz | ||
| Name: William J. Betz, CFO | ||
NXP Semiconductors Reports Third Quarter 2026 Results
Announces $5 Billion Increase in Share Repurchase Authorization
EINDHOVEN, The Netherlands, October 27, 2026 – NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the third quarter, which ended September 27, 2026. “NXP delivered third-quarter revenue of $3.8 billion, up 19 percent year-on-year and 8 percent sequentially. Our performance was driven by accelerating contributions from our company-specific growth drivers in automotive and industrial as well as continued momentum in data center infrastructure. Strong profitability leading to free cash flow generation enables NXP to invest in innovative solutions and expand manufacturing capabilities that support our long-term growth objectives, while continuing to return capital to shareholders through our newly announced $5 billion share repurchase authorization. Looking ahead, we see significant opportunities as software-defined vehicles drive increasing demand for our next-generation solutions, while data center infrastructure and Trusted Physical AI applications create new vectors for long-term growth,” said Rafael Sotomayor, NXP President and Chief Executive Officer.
Key Highlights for the Third Quarter 2026:
•Revenue was $3.79 billion, up 19 percent year-on-year;
•GAAP gross margin was 57.8 percent, GAAP operating margin was 32.4 percent and GAAP diluted Net Income per Share was $3.48;
•Non-GAAP gross margin was 58.6 percent, non-GAAP operating margin was 37.1 percent, and non-GAAP diluted Net Income per Share was $4.20;
•Cash flow from operations was $1.26 billion, with net capex investments of $50 million, resulting in non-GAAP free cash flow of $1.21 billion or 31.9 percent of revenue;
•Capital return during the quarter was $359 million, representing 29.8 percent of third quarter non-GAAP free cash flow. Dividends paid during the quarter were $256 million, and share buybacks were $103 million;
•On August 4, 2026, NXP announced that its Trimension™ Ultra-Wideband (UWB) ranging and radar solutions will be deployed by the BMW Group across its fleet, starting with selected 2026 vehicle programs;
•On August 12, 2026, NXP broke ground on its assembly and test site expansion in Malaysia;
•On September 28, 2026, VSMC, the joint venture between Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors N.V., marked the grand opening of its first 300mm fab in Singapore; and
•The NXP Board of Directors, in October after quarter end, authorized a $5 billion share repurchase program in addition to the $1.3 billion remaining under the prior authorization.
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Summary of Reported Third Quarter 2026 ($ millions, unaudited) (1)
| Q3 2026 | Q2 2026 | Q3 2025 | Q - Q | Y - Y | |||||||||||||
| Total Revenue | $ | 3,786 | $ | 3,496 | $ | 3,173 | 8% | 19% | |||||||||
| GAAP Gross Profit | $ | 2,189 | $ | 2,002 | $ | 1,787 | 9% | 22% | |||||||||
Gross Profit Adjustments (i) | $ | (28) | $ | (26) | $ | (23) | |||||||||||
| Non-GAAP Gross Profit | $ | 2,217 | $ | 2,028 | $ | 1,810 | 9% | 22% | |||||||||
| GAAP Gross Margin | 57.8 | % | 57.3 | % | 56.3 | % | |||||||||||
| Non-GAAP Gross Margin | 58.6 | % | 58.0 | % | 57.0 | % | |||||||||||
| GAAP Operating Income (Loss) | $ | 1,228 | $ | 1,071 | $ | 893 | 15% | 38% | |||||||||
Operating Income Adjustments (i) | $ | (178) | $ | (157) | $ | (178) | |||||||||||
| Non-GAAP Operating Income | $ | 1,406 | $ | 1,228 | $ | 1,071 | 14% | 31% | |||||||||
| GAAP Operating Margin | 32.4 | % | 30.6 | % | 28.1 | % | |||||||||||
| Non-GAAP Operating Margin | 37.1 | % | 35.1 | % | 33.8 | % | |||||||||||
| GAAP Net Income (Loss) attributable to Stockholders | $ | 884 | $ | 767 | $ | 631 | 15% | 40% | |||||||||
Net Income Adjustments (i) | $ | (181) | $ | (151) | $ | (159) | |||||||||||
| Non-GAAP Net Income (Loss) Attributable to Stockholders | $ | 1,065 | $ | 918 | $ | 790 | 16% | 35% | |||||||||
GAAP diluted Net Income (Loss) per Share (ii) | $ | 3.48 | $ | 3.02 | $ | 2.48 | 15% | 40% | |||||||||
Non-GAAP diluted Net Income (Loss) per Share (ii) | $ | 4.20 | $ | 3.61 | $ | 3.11 | 16% | 35% | |||||||||
| Additional information | |||||||||||||||||
| Q3 2026 | Q2 2026 | Q3 2025 | Q - Q | Y - Y | |||||||||||||
| Automotive | $ | 2,070 | $ | 1,938 | $ | 1,837 | 7% | 13% | |||||||||
| Industrial & IoT | $ | 802 | $ | 755 | $ | 579 | 6% | 39% | |||||||||
| Mobile | $ | 411 | $ | 351 | $ | 430 | 17% | -4% | |||||||||
| Comm. Infra. & Other | $ | 503 | $ | 452 | $ | 327 | 11% | 54% | |||||||||
| DIO | 148 | 156 | 161 | ||||||||||||||
| DPO | 62 | 60 | 58 | ||||||||||||||
| DSO | 30 | 33 | 31 | ||||||||||||||
| Cash Conversion Cycle | 116 | 129 | 134 | ||||||||||||||
| Channel Inventory (weeks) | 11 | 11 | 9 | ||||||||||||||
Gross Financial Leverage (iii) | 2.0x | 2.1x | 2.6x | ||||||||||||||
Net Financial Leverage (iv) | 1.3x | 1.5x | 1.8x | ||||||||||||||
1.Additional Information for the Third Quarter 2026:
i.For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
ii.Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
iii.Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
iv.Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.
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Guidance for the Fourth Quarter 2026: ($ millions, except Per Share data) (1)
| GAAP | Reconciliation | non-GAAP | |||||||||||||||||||||||||||||||||||||||
| Low | Mid | High | Low | Mid | High | ||||||||||||||||||||||||||||||||||||
| Total Revenue | $3,750 | $3,850 | $3,950 | $3,750 | $3,850 | $3,950 | |||||||||||||||||||||||||||||||||||
| Q-Q | -1% | 2% | 4% | -1% | 2% | 4% | |||||||||||||||||||||||||||||||||||
| Y-Y | 12% | 15% | 18% | 12% | 15% | 18% | |||||||||||||||||||||||||||||||||||
| Gross Profit | $2,160 | $2,238 | $2,317 | $(35) | $2,195 | $2,273 | $2,352 | ||||||||||||||||||||||||||||||||||
| Gross Margin | 57.6% | 58.1% | 58.7% | 58.5% | 59.0% | 59.5% | |||||||||||||||||||||||||||||||||||
| Operating Income (loss) | $1,167 | $1,235 | $1,304 | $(207) | $1,374 | $1,442 | $1,511 | ||||||||||||||||||||||||||||||||||
| Operating Margin | 31.1% | 32.1% | 33.0% | 36.6% | 37.5% | 38.3% | |||||||||||||||||||||||||||||||||||
| Financial Income (expense) | $(89) | $(89) | $(89) | $(10) | $(79) | $(79) | $(79) | ||||||||||||||||||||||||||||||||||
| Tax rate | 18.6%-19.6% | 17.0%-18.0% | |||||||||||||||||||||||||||||||||||||||
| Equity-accounted investees | $(6) | $(6) | $(6) | $(1) | $(5) | $(5) | $(5) | ||||||||||||||||||||||||||||||||||
| Non-controlling interests | $(14) | $(14) | $(14) | $(14) | $(14) | $(14) | |||||||||||||||||||||||||||||||||||
| Shares - diluted | 253.8 | 253.8 | 253.8 | 253.8 | 253.8 | 253.8 | |||||||||||||||||||||||||||||||||||
| Earnings Per Share - diluted | $3.36 | $3.57 | $3.79 | $4.14 | $4.36 | $4.58 | |||||||||||||||||||||||||||||||||||
Note (1) Additional Information:
1.GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(4) million; Share-based Compensation, $(15) million; Other Incidentals, $(16) million;
2.GAAP Operating Income (loss) is expected to include PPA effects, $(35) million; Share-based Compensation, $(132) million; Restructuring and Other Incidentals, $(40) million;
3.GAAP Financial Income (expense) is expected to include Other financial expense $(10) million;
4.GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(1) million;
5.GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.
NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.
Non-GAAP Financial Measures
In managing NXP's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP's underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP's operations.
In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Other income, (vi) Operating income (loss), (vii) Operating margin, (viii) Financial Income (expense), (ix) Income tax benefit (provision), (x) Results relating to foundry equity-accounted investees, (xi) Net income (loss) attributable to stockholders, (xii) Earnings per Share - Diluted, (xiii) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xiv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration
3
costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.
The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).
Conference Call and Webcast Information
The company will host a conference call with the financial community on Tuesday, October 27, 2026 at 4:30 p.m. U.S. Eastern Daylight Time (EDT) to review the third quarter 2026 results in detail.
Interested parties may preregister to obtain a user-specific access code for the call here.
The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which our products are incorporated; recent changes in global trade policy including tariffs and related trade actions announced by the U.S., China and other countries, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in our customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, and the continued hostilities and armed conflict in the Middle East including the ongoing military conflict involving Iran and the resulting disruption to energy markets, industrial gas supplies and global logistical routes, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance our debt at or before maturity to meet our debt service, research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.
For further information, please contact:
Investors: Media:
Jeff Palmer Paige Iven
jeff.palmer@nxp.com paige.iven@nxp.com
+1 408 205 0687 +1 817 975 0602
Mike Lucarelli
mike.lucarelli@nxp.com
+1 617 943 6892
NXP-CORP
4
NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)
| ($ in millions except share data) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| Revenue | $ | 3,786 | $ | 3,496 | $ | 3,173 | |||||||||||
| Cost of revenue | (1,597) | (1,494) | (1,386) | ||||||||||||||
| Gross profit | 2,189 | 2,002 | 1,787 | ||||||||||||||
| Research and development | (615) | (604) | (575) | ||||||||||||||
| Selling, general and administrative | (313) | (291) | (286) | ||||||||||||||
| Amortization of acquisition-related intangible assets | (30) | (31) | (31) | ||||||||||||||
| Total operating expenses | (958) | (926) | (892) | ||||||||||||||
| Other income (expense) | (3) | (5) | (2) | ||||||||||||||
| Operating income (loss) | 1,228 | 1,071 | 893 | ||||||||||||||
| Financial income (expense): | |||||||||||||||||
| Other financial income (expense) | (97) | (97) | (98) | ||||||||||||||
| Income (loss) before income taxes | 1,131 | 974 | 795 | ||||||||||||||
| Benefit (provision) for income taxes | (228) | (189) | (148) | ||||||||||||||
| Results relating to equity-accounted investees | (4) | (3) | (1) | ||||||||||||||
| Net income (loss) | 899 | 782 | 646 | ||||||||||||||
| Less: Net income (loss) attributable to non-controlling interests | 15 | 15 | 15 | ||||||||||||||
| Net income (loss) attributable to stockholders | 884 | 767 | 631 | ||||||||||||||
| Earnings per share data: | |||||||||||||||||
| Net income (loss) per common share attributable to stockholders in $ | |||||||||||||||||
| Basic | $ | 3.51 | $ | 3.04 | $ | 2.50 | |||||||||||
| Diluted | $ | 3.48 | $ | 3.02 | $ | 2.48 | |||||||||||
| Weighted average number of shares of common stock outstanding during the period (in thousands): | |||||||||||||||||
| Basic | 252,123 | 252,415 | 252,170 | ||||||||||||||
| Diluted | 253,831 | 254,021 | 254,310 | ||||||||||||||
5
NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)
| ($ in millions) | As of | |||||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 3,943 | $ | 3,222 | $ | 3,454 | ||||||||||||||
| Short-term deposits | — | — | 500 | |||||||||||||||||
| Accounts receivable, net | 1,260 | 1,274 | 1,095 | |||||||||||||||||
| Assets held for sale | 92 | 92 | 292 | |||||||||||||||||
| Inventories, net | 2,596 | 2,557 | 2,452 | |||||||||||||||||
| Other current assets | 544 | 539 | 716 | |||||||||||||||||
| Total current assets | 8,435 | 7,684 | 8,509 | |||||||||||||||||
| Non-current assets: | ||||||||||||||||||||
| Deferred tax assets | 1,297 | 1,242 | 1,313 | |||||||||||||||||
| Other non-current assets | 3,432 | 3,195 | 2,186 | |||||||||||||||||
| Property, plant and equipment, net | 2,803 | 2,835 | 3,086 | |||||||||||||||||
| Identified intangible assets, net | 1,381 | 1,441 | 1,139 | |||||||||||||||||
| Goodwill | 10,259 | 10,268 | 10,121 | |||||||||||||||||
| Total non-current assets | 19,172 | 18,981 | 17,845 | |||||||||||||||||
| Total assets | 27,607 | 26,665 | 26,354 | |||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Accounts payable | 1,089 | 984 | 886 | |||||||||||||||||
| Restructuring liabilities-current | 83 | 111 | 49 | |||||||||||||||||
| Other current liabilities | 1,799 | 1,672 | 1,384 | |||||||||||||||||
| Short-term debt | 999 | 999 | 1,264 | |||||||||||||||||
| Total current liabilities | 3,970 | 3,766 | 3,583 | |||||||||||||||||
| Non-current liabilities: | ||||||||||||||||||||
| Long-term debt | 9,979 | 9,977 | 10,971 | |||||||||||||||||
| Restructuring liabilities | 65 | 65 | 60 | |||||||||||||||||
| Other non-current liabilities | 1,128 | 1,096 | 1,313 | |||||||||||||||||
| Total non-current liabilities | 11,172 | 11,138 | 12,344 | |||||||||||||||||
| Non-controlling interests | 377 | 362 | 382 | |||||||||||||||||
| Stockholders’ equity | 12,088 | 11,399 | 10,045 | |||||||||||||||||
| Total equity | 12,465 | 11,761 | 10,427 | |||||||||||||||||
| Total liabilities and equity | 27,607 | 26,665 | 26,354 | |||||||||||||||||
6
NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)
| ($ in millions) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income (loss) | $ | 899 | $ | 782 | $ | 646 | |||||||||||
| Cash flows provided by (used for) operating activities: | |||||||||||||||||
| Depreciation and amortization | 192 | 184 | 201 | ||||||||||||||
| Share-based compensation | 114 | 105 | 118 | ||||||||||||||
| Amortization of discount (premium) on debt, net | 1 | — | 1 | ||||||||||||||
| Amortization of debt issuance costs | 1 | 2 | 2 | ||||||||||||||
| Net (gain) loss on sale of assets | — | — | (1) | ||||||||||||||
| Results relating to equity-accounted investees | 4 | 3 | 1 | ||||||||||||||
| (Gain) loss on equity securities, net | 2 | 1 | (1) | ||||||||||||||
| Deferred tax expense (benefit) | (43) | (13) | (8) | ||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| (Increase) decrease in receivables and other current assets | 11 | 14 | 54 | ||||||||||||||
| (Increase) decrease in inventories | (39) | (34) | (96) | ||||||||||||||
| Increase (decrease) in accounts payable and other liabilities | 196 | (136) | (219) | ||||||||||||||
| (Increase) decrease in other non-current assets | (97) | (48) | (123) | ||||||||||||||
| Exchange differences | 11 | 3 | 8 | ||||||||||||||
| Other items | 4 | (3) | 2 | ||||||||||||||
| Net cash provided by (used for) operating activities | 1,256 | 860 | 585 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchase of identified intangible assets | (36) | (37) | (23) | ||||||||||||||
| Capital expenditures on property, plant and equipment | (51) | (69) | (77) | ||||||||||||||
| Proceeds from the disposals of property, plant and equipment | 1 | — | 1 | ||||||||||||||
| Purchase of interests in businesses, net of cash acquired | — | — | (11) | ||||||||||||||
| Advance proceeds related to business disposition | 34 | — | — | ||||||||||||||
| Investment in short-term deposits | 0 | — | (500) | ||||||||||||||
| Purchase of investments | (124) | (132) | (173) | ||||||||||||||
| Proceeds from the sale of investments | (1) | 1 | — | ||||||||||||||
| Net cash provided by (used for) investing activities | (177) | (237) | (783) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Repurchase of long-term debt | — | (750) | — | ||||||||||||||
| Proceeds from the issuance of long-term debt | — | — | 1,498 | ||||||||||||||
| Cash paid for debt issuance costs | — | — | (8) | ||||||||||||||
| Proceeds from the issuance of commercial paper notes | — | — | 215 | ||||||||||||||
| Repayment of commercial paper notes | — | — | (950) | ||||||||||||||
| Dividends paid to non-controlling interests | (30) | — | — | ||||||||||||||
| Dividends paid to common stockholders | (256) | (256) | (256) | ||||||||||||||
| Proceeds from issuance of common stock through stock plans | 34 | 1 | 38 | ||||||||||||||
| Purchase of treasury shares and restricted stock unit withholdings | (103) | (104) | (54) | ||||||||||||||
| Other, net | — | — | (1) | ||||||||||||||
| Net cash provided by (used for) financing activities | (355) | (1,109) | 482 | ||||||||||||||
| Effect of changes in exchange rates on cash positions | (3) | — | — | ||||||||||||||
| Increase (decrease) in cash and cash equivalents | 721 | (486) | 284 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 3,222 | 3,708 | 3,170 | ||||||||||||||
| Cash and cash equivalents at end of period | 3,943 | 3,222 | 3,454 | ||||||||||||||
7
NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions except share data) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| GAAP Gross Profit | $ | 2,189 | $ | 2,002 | $ | 1,787 | |||||||||||
| PPA Effects | (6) | (5) | (6) | ||||||||||||||
| Restructuring | 9 | — | — | ||||||||||||||
| Share-based compensation | (14) | (12) | (15) | ||||||||||||||
| Other incidentals | (17) | (9) | (2) | ||||||||||||||
| Non-GAAP Gross Profit | $ | 2,217 | $ | 2,028 | $ | 1,810 | |||||||||||
| GAAP Research and development | $ | (615) | $ | (604) | $ | (575) | |||||||||||
| Restructuring | (3) | 4 | (1) | ||||||||||||||
| Share-based compensation | (53) | (54) | (57) | ||||||||||||||
| Other incidentals | (2) | (4) | (2) | ||||||||||||||
| Non-GAAP Research and development | $ | (557) | $ | (550) | $ | (515) | |||||||||||
| GAAP Selling, general and administrative | $ | (313) | $ | (291) | $ | (286) | |||||||||||
| PPA effects | — | — | (1) | ||||||||||||||
| Restructuring | (1) | 4 | (2) | ||||||||||||||
| Share-based compensation | (47) | (39) | (46) | ||||||||||||||
| Other incidentals | (12) | (12) | (14) | ||||||||||||||
| Non-GAAP Selling, general and administrative | $ | (253) | $ | (244) | $ | (223) | |||||||||||
| GAAP Other income (expense) | $ | (3) | $ | (5) | $ | (2) | |||||||||||
| Other incidentals | (2) | 1 | (1) | ||||||||||||||
| Non-GAAP Other income (expense) | $ | (1) | $ | (6) | $ | (1) | |||||||||||
| GAAP Operating income (loss) | $ | 1,228 | $ | 1,071 | $ | 893 | |||||||||||
| PPA effects | (36) | (36) | (38) | ||||||||||||||
| Restructuring | 5 | 8 | (3) | ||||||||||||||
| Share-based compensation | (114) | (105) | (118) | ||||||||||||||
| Other incidentals | (33) | (24) | (19) | ||||||||||||||
| Non-GAAP Operating income (loss) | $ | 1,406 | $ | 1,228 | $ | 1,071 | |||||||||||
| GAAP Financial income (expense) | $ | (97) | $ | (97) | $ | (98) | |||||||||||
| Foreign exchange gain (loss) | (9) | (5) | (6) | ||||||||||||||
| Other financial income (expense) | (3) | (5) | (1) | ||||||||||||||
| Non-GAAP Financial income (expense) | $ | (85) | $ | (87) | $ | (91) | |||||||||||
| GAAP Income tax benefit (provision) | $ | (228) | $ | (189) | $ | (148) | |||||||||||
| Income tax effect | 9 | 16 | 25 | ||||||||||||||
| Non-GAAP Income tax benefit (provision) | $ | (237) | $ | (205) | $ | (173) | |||||||||||
8
| ($ in millions except share data) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| GAAP Results relating to equity-accounted investees | $ | (4) | $ | (3) | $ | (1) | |||||||||||
Results relating to equity-accounted investees, excluding Foundry investees1 | — | — | 1 | ||||||||||||||
| Non-GAAP Results relating to equity-accounted investees | $ | (4) | $ | (3) | $ | (2) | |||||||||||
| GAAP Net income (loss) | $ | 899 | $ | 782 | $ | 646 | |||||||||||
| Less: Net income (loss) attributable to non-controlling interest | 15 | 15 | 15 | ||||||||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 884 | $ | 767 | $ | 631 | |||||||||||
| GAAP Net income (loss) attributable to stockholders | $ | 884 | $ | 767 | $ | 631 | |||||||||||
| PPA Effects | (36) | (36) | (38) | ||||||||||||||
| Restructuring | 5 | 8 | (3) | ||||||||||||||
| Share-based compensation | (114) | (105) | (118) | ||||||||||||||
| Other incidentals | (33) | (24) | (19) | ||||||||||||||
| Other adjustments: | |||||||||||||||||
| Adjustments to financial income (expense) | (12) | (10) | (7) | ||||||||||||||
| Income tax effect | 9 | 16 | 25 | ||||||||||||||
Results relating to equity-accounted investees, excluding Foundry investees1 | — | — | 1 | ||||||||||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 1,065 | $ | 918 | $ | 790 | |||||||||||
| GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 3.48 | $ | 3.02 | $ | 2.48 | |||||||||||
| PPA Effects | (0.14) | (0.14) | (0.15) | ||||||||||||||
| Restructuring | 0.02 | 0.03 | (0.01) | ||||||||||||||
| Share-based compensation | (0.45) | (0.41) | (0.47) | ||||||||||||||
| Other incidentals | (0.14) | (0.09) | (0.08) | ||||||||||||||
| Other adjustments: | |||||||||||||||||
| Adjustments to financial income (expense) | (0.05) | (0.04) | (0.02) | ||||||||||||||
| Income tax effect | 0.04 | 0.06 | 0.10 | ||||||||||||||
Results relating to equity-accounted investees, excluding Foundry investees1 | — | — | — | ||||||||||||||
| Non-GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 4.20 | $ | 3.61 | $ | 3.11 | |||||||||||
| Additional Information: | |||||||||||||||||
1.We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees. | |||||||||||||||||
9
NXP Semiconductors
Table 5: Adjusted EBITDA and Free Cash Flow (unaudited)
| ($ in millions) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| GAAP Net income (loss) | $ | 899 | $ | 782 | $ | 646 | |||||||||||
| Reconciling items to EBITDA (Non-GAAP) | |||||||||||||||||
| Financial (income) expense | 97 | 97 | 98 | ||||||||||||||
| (Benefit) provision for income taxes | 228 | 189 | 148 | ||||||||||||||
| Depreciation and impairment | 123 | 114 | 132 | ||||||||||||||
| Amortization | 69 | 70 | 69 | ||||||||||||||
| EBITDA (Non-GAAP) | $ | 1,416 | $ | 1,252 | $ | 1,093 | |||||||||||
| Reconciling items to adjusted EBITDA (Non-GAAP) | |||||||||||||||||
Results of equity-accounted investees, excluding Foundry investees1 | — | — | (1) | ||||||||||||||
| Restructuring | (5) | (8) | 3 | ||||||||||||||
| Share-based compensation | 114 | 105 | 118 | ||||||||||||||
Other incidental items2 | 22 | 20 | 19 | ||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 1,547 | $ | 1,369 | $ | 1,232 | |||||||||||
| Trailing twelve month adjusted EBITDA (Non-GAAP) | $ | 5,421 | $ | 5,106 | $ | 4,648 | |||||||||||
| Additional Information: | |||||||||||||||||
1.Refer to Table 4 above for further information regarding the results relating to equity-accounted investees. | |||||||||||||||||
| 2. Excluding depreciation and impairment or amortization relating to: | |||||||||||||||||
–other incidental items | 11 | 4 | — | ||||||||||||||
| ($ in millions) | Three months ended | ||||||||||||||||
| September 27, 2026 | June 28, 2026 | September 28, 2025 | |||||||||||||||
| Net cash provided by (used for) operating activities | $ | 1,256 | $ | 860 | $ | 585 | |||||||||||
| Net capital expenditures on property, plant and equipment | (50) | (69) | (76) | ||||||||||||||
| Non-GAAP free cash flow | $ | 1,206 | $ | 791 | $ | 509 | |||||||||||
| Trailing twelve month non-GAAP free cash flow | $ | 3,504 | $ | 2,807 | $ | 1,924 | |||||||||||
| Trailing twelve month non-GAAP free cash flow as percent of Revenue | 25 | % | 21 | % | 16 | % | |||||||||||
10