NXP Semiconductors Reports Third Quarter 2026 Results
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.
• 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 $1.3 billion remaining under the prior authorization. 1 Summary of Reported Third Quarter 2026 ($ millions, unaudited
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. 2 Guidance for the Fourth Quarter 2026: ($ millions, except Per Share data) (1)
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 .
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.).
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.
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 .
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.
($ in millions except Three share months September June 28, September data) ended 27, 2026 2026 28, 2025 ────────────────────────────────────────────────────────────────────────────── Revenue $ 3,786 $ 3,496 $ 3,173 Cost of -1,597 -1,494 -1,386 revenue Gross 2,189 2,002 1,787 profit Research and -615 -604 -575 developme… Selling, general -313 -291 -286 and administr… Amortizat… of acquisiti… -30 -31 -31 intangible assets Total operating -958 -926 -892 expenses Other income -3 -5 -2 (expense) Operating income 1,228 1,071 893 (loss) Financial income (expense): Other financial -97 -97 -98 income (expense) Income (loss) before 1,131 974 795 income taxes Benefit (provisio… -228 -189 -148 for income taxes Results relating to -4 -3 -1 equity-ac… investees Net income 899 782 646 (loss) Less: Net income (loss) attributa… 15 15 15 to non-contr… interests Net income (loss) attributa… 884 767 631 to stockhold… Earnings per share data: Net income (loss) per common share attributa… to stockhold… in $ Basic $ 3.51 $ 3.04 $ 2.50 Diluted $ 3.48 $ 3.02 $ 2.48 Weighted average number of shares of common stock outstandi… during the period (in thousands… Basic 252,123 252,415 252,170 Diluted 253,831 254,021 254,310
Three ($ in months September June 28, September millions) ended 27, 2026 2026 28, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activitie… Net income $ 899 $ 782 $ 646 (loss) Cash flows provided by (used for) operating activitie… Depreciat… and 192 184 201 amortizat… Share-bas… 114 105 118 compensat… Amortizat… of discount 1 — 1 (premium) on debt, net Amortizat… of debt 1 2 2 issuance costs Net (gain) loss on — — -1 sale of assets Results relating to 4 3 1 equity-ac… investees (Gain) loss on equity 2 1 -1 securitie… net Deferred tax -43 -13 -8 expense (benefit) Changes in operating assets and liabiliti… (Increase) decrease in receivabl… 11 14 54 and other current assets (Increase) decrease -39 -34 -96 in inventori… Increase (decrease) in accounts 196 -136 -219 payable and other liabiliti… (Increase) decrease in other -97 -48 -123 non-curre… assets Exchange 11 3 8 differenc… Other 4 -3 2 items Net cash provided by (used 1,256 860 585 for) operating activities Cash flows from investing activitie… Purchase of identified -36 -37 -23 intangible assets Capital expenditu… on property, -51 -69 -77 plant and equipment Proceeds from the disposals of 1 — 1 property, plant and equipment Purchase of interests in — — -11 businesse… net of cash acquired Advance proceeds related to 34 — — business dispositi… Investment in 0 — -500 short-term deposits Purchase of -124 -132 -173 investmen… Proceeds from the -1 1 — sale of investmen… Net cash provided by (used -177 -237 -783 for) investing activities Cash flows from financing activitie… Repurchase of — -750 — long-term debt Proceeds from the issuance — — 1,498 of long-term debt Cash paid for debt — — -8 issuance costs Proceeds from the issuance of — — 215 commercial paper notes Repayment of commercial — — -950 paper notes Dividends paid to -30 — — non-contr… interests Dividends paid to -256 -256 -256 common stockhold… Proceeds from issuance of common 34 1 38 stock through stock plans Purchase of treasury shares and -103 -104 -54 restricted stock unit withholdi… Other, net — — -1 Net cash provided by (used -355 -1,109 482 for) financing activities Effect of changes in exchange -3 — — rates on cash positions Increase (decrease) in cash 721 -486 284 and cash equivalen… Cash and cash equivalen… 3,222 3,708 3,170 at beginning of period Cash and cash equivalen… 3,943 3,222 3,454 at end of period
($ in millions except Three share months September June 28, September data) ended 27, 2026 2026 28, 2025 ────────────────────────────────────────────────────────────────────────────── GAAP Results relating $ -4 $ -3 $ -1 to equity-ac… investees Results relating to equity-ac… — — 1 investees, excluding Foundry investees1 Non-GAAP Results relating $ -4 $ -3 $ -2 to equity-ac… investees GAAP Net income $ 899 $ 782 $ 646 (loss) Less: Net income (loss) attributa… 15 15 15 to non-contr… interest GAAP Net income (loss) $ 884 $ 767 $ 631 attributa… to stockhold… GAAP Net income (loss) $ 884 $ 767 $ 631 attributa… to stockhold… PPA -36 -36 -38 Effects Restructu… 5 8 -3 Share-bas… -114 -105 -118 compensat… Other -33 -24 -19 incidenta… Other adjustmen… Adjustmen… to financial -12 -10 -7 income (expense) Income tax 9 16 25 effect Results relating to equity-ac… — — 1 investees, excluding Foundry investees1 Non-GAAP Net income (loss) $ 1,065 $ 918 $ 790 attributa… to stockhold… GAAP net income (loss) per common share $ 3.48 $ 3.02 $ 2.48 attributa… to stockhold… - diluted PPA -0.14 -0.14 -0.15 Effects Restructu… 0.02 0.03 -0.01 Share-bas… -0.45 -0.41 -0.47 compensat… Other -0.14 -0.09 -0.08 incidenta… Other adjustmen… Adjustmen… to financial -0.05 -0.04 -0.02 income (expense) Income tax 0.04 0.06 0.10 effect Results relating to equity-ac… — — — investees, excluding Foundry investees1 Non-GAAP net income (loss) per common share $ 4.20 $ 3.61 $ 3.11 attributa… to stockhold… - diluted Additional Informati… 1.We adjust our results relating to equity-ac… investees for those results from investmen… over which NXP has significa… influence, but not control, and whose business activities are not related to the core operating performan… of NXP. Our equity-in… in foundry partners are part of our long-term core operating performan… and according… those results comprise the Non-GAAP Results relating to equity-ac… investees.
Full text with the tables
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 $1.3 billion remaining under
the prior authorization.
1
Summary of Reported Third Quarter 2026 ($ millions, unaudited
)
(1)
Q3 2026 Q2 2026 Q3 2025 Q - Q
──────────────────────────────────────────────────────────────────────────────
Total $ 3,786 $ 3,496 $ 3,173 8% 19%
Revenue
GAAP Gross $ 2,189 $ 2,002 $ 1,787 9% 22%
Profit
Gross Profit $ -28 $ -26 $ -23
Adjustments…
Non-GAAP $ 2,217 $ 2,028 $ 1,810 9% 22%
Gross Profit
GAAP Gross 57.8 % 57.3 % 56.3 %
Margin
Non-GAAP 58.6 % 58.0 % 57.0 %
Gross Margin
GAAP
Operating $ 1,228 $ 1,071 $ 893 15% 38%
Income
(Loss)
Operating
Income $ -178 $ -157 $ -178
Adjustments…
Non-GAAP
Operating $ 1,406 $ 1,228 $ 1,071 14% 31%
Income
GAAP
Operating 32.4 % 30.6 % 28.1 %
Margin
Non-GAAP
Operating 37.1 % 35.1 % 33.8 %
Margin
GAAP Net
Income
(Loss) $ 884 $ 767 $ 631 15% 40%
attributable
to
Stockholders
Net Income $ -181 $ -151 $ -159
Adjustments…
Non-GAAP Net
Income
(Loss) $ 1,065 $ 918 $ 790 16% 35%
Attributable
to
Stockholders
GAAP diluted
Net Income $ 3.48 $ 3.02 $ 2.48 15% 40%
(Loss) per
Share(ii)
Non-GAAP
diluted Net
Income $ 4.20 $ 3.61 $ 3.11 16% 35%
(Loss) per
Share(ii)
Addi… Q3 Q3
info… 2026 Q2 2026 2025 Q - Q
──────────────────────────────────────────────────────────────────────────────
Auto… $ 2,070 $ 1,938 $ 1,837 7% 13%
Indu… $ 802 $ 755 $ 579 6% 39%
& IoT
Mobi… $ 411 $ 351 $ 430 17% -4%
Comm.
Infr… $ 503 $ 452 $ 327 11% 54%
&
Other
DIO 148 156 161
DPO 62 60 58
DSO 30 33 31
Cash
Conv… 116 129 134
Cycle
Chan…
Inve… 11 11 9
(wee…
Gross
Fina… 2.0x 2.1x 2.6x
Leve…
Net
Fina… 1.3x 1.5x 1.8x
Leve…
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.
2
Guidance for the Fourth Quarter 2026: ($ millions, except Per Share data) (1)
GAAP Reconc… non-G…
Low Mid High Low Mid High
Total $3,750 $3,850 $3,950 $3,750 $3,850 $3,950
Reve…
Q-Q -1% 2% 4% -1% 2% 4%
Y-Y 12% 15% 18% 12% 15% 18%
Gross $2,160 $2,238 $2,317 $(35) $2,195 $2,273 $2,352
Prof…
Gross 57.6% 58.1% 58.7% 58.5% 59.0% 59.5%
Marg…
Oper…
Inco… $1,167 $1,235 $1,304 $(207) $1,374 $1,442 $1,511
(los…
Oper… 31.1% 32.1% 33.0% 36.6% 37.5% 38.3%
Marg…
Fina…
Inco… $(89) $(89) $(89) $(10) $(79) $(79) $(79)
(exp…
Tax 18.6%… 17.0%…
rate
Equi… $(6) $(6) $(6) $(1) $(5) $(5) $(5)
inve…
Non-… $(14) $(14) $(14) $(14) $(14) $(14)
inte…
Shar…
- 253.8 253.8 253.8 253.8 253.8 253.8
dilu…
Earn…
Per
Share $3.36 $3.57 $3.79 $4.14 $4.36 $4.58
-
dilu…
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 Three
share months September June 28, September
data) ended 27, 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 3,786 $ 3,496 $ 3,173
Cost of -1,597 -1,494 -1,386
revenue
Gross 2,189 2,002 1,787
profit
Research
and -615 -604 -575
developme…
Selling,
general -313 -291 -286
and
administr…
Amortizat…
of
acquisiti… -30 -31 -31
intangible
assets
Total
operating -958 -926 -892
expenses
Other
income -3 -5 -2
(expense)
Operating
income 1,228 1,071 893
(loss)
Financial
income
(expense):
Other
financial -97 -97 -98
income
(expense)
Income
(loss)
before 1,131 974 795
income
taxes
Benefit
(provisio… -228 -189 -148
for income
taxes
Results
relating
to -4 -3 -1
equity-ac…
investees
Net income 899 782 646
(loss)
Less: Net
income
(loss)
attributa… 15 15 15
to
non-contr…
interests
Net income
(loss)
attributa… 884 767 631
to
stockhold…
Earnings
per share
data:
Net income
(loss) per
common
share
attributa…
to
stockhold…
in $
Basic $ 3.51 $ 3.04 $ 2.50
Diluted $ 3.48 $ 3.02 $ 2.48
Weighted
average
number of
shares of
common
stock
outstandi…
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 September June 28, September
millions) As of 27, 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current
assets:
Cash and
cash $ 3,943 $ 3,222 $ 3,454
equivale…
Short-te… — — 500
deposits
Accounts
receivab… 1,260 1,274 1,095
net
Assets
held for 92 92 292
sale
Inventor… 2,596 2,557 2,452
net
Other
current 544 539 716
assets
Total
current 8,435 7,684 8,509
assets
Non-curr…
assets:
Deferred
tax 1,297 1,242 1,313
assets
Other
non-curr… 3,432 3,195 2,186
assets
Property,
plant and 2,803 2,835 3,086
equipmen…
net
Identifi…
intangib… 1,381 1,441 1,139
assets,
net
Goodwill 10,259 10,268 10,121
Total
non-curr… 19,172 18,981 17,845
assets
Total 27,607 26,665 26,354
assets
LIABILIT…
AND
EQUITY
Current
liabilit…
Accounts 1,089 984 886
payable
Restruct… 83 111 49
liabilit…
Other
current 1,799 1,672 1,384
liabilit…
Short-te… 999 999 1,264
debt
Total
current 3,970 3,766 3,583
liabilit…
Non-curr…
liabilit…
Long-term 9,979 9,977 10,971
debt
Restruct… 65 65 60
liabilit…
Other
non-curr… 1,128 1,096 1,313
liabilit…
Total
non-curr… 11,172 11,138 12,344
liabilit…
Non-cont… 377 362 382
interests
Stockhol… 12,088 11,399 10,045
equity
Total 12,465 11,761 10,427
equity
Total
liabilit… 27,607 26,665 26,354
and
equity
6
NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)
Three
($ in months September June 28, September
millions) ended 27, 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows
from
operating
activitie…
Net income $ 899 $ 782 $ 646
(loss)
Cash flows
provided
by (used
for)
operating
activitie…
Depreciat…
and 192 184 201
amortizat…
Share-bas… 114 105 118
compensat…
Amortizat…
of
discount 1 — 1
(premium)
on
debt, net
Amortizat…
of debt 1 2 2
issuance
costs
Net (gain)
loss on — — -1
sale of
assets
Results
relating
to 4 3 1
equity-ac…
investees
(Gain)
loss on
equity 2 1 -1
securitie…
net
Deferred
tax -43 -13 -8
expense
(benefit)
Changes in
operating
assets and
liabiliti…
(Increase)
decrease
in
receivabl… 11 14 54
and
other
current
assets
(Increase)
decrease -39 -34 -96
in
inventori…
Increase
(decrease)
in
accounts 196 -136 -219
payable
and other
liabiliti…
(Increase)
decrease
in other -97 -48 -123
non-curre…
assets
Exchange 11 3 8
differenc…
Other 4 -3 2
items
Net cash
provided
by (used 1,256 860 585
for)
operating
activities
Cash flows
from
investing
activitie…
Purchase
of
identified -36 -37 -23
intangible
assets
Capital
expenditu…
on
property, -51 -69 -77
plant
and
equipment
Proceeds
from the
disposals
of 1 — 1
property,
plant and
equipment
Purchase
of
interests
in — — -11
businesse…
net
of cash
acquired
Advance
proceeds
related to 34 — —
business
dispositi…
Investment
in 0 — -500
short-term
deposits
Purchase
of -124 -132 -173
investmen…
Proceeds
from the -1 1 —
sale of
investmen…
Net cash
provided
by (used -177 -237 -783
for)
investing
activities
Cash flows
from
financing
activitie…
Repurchase
of — -750 —
long-term
debt
Proceeds
from the
issuance — — 1,498
of
long-term
debt
Cash paid
for debt — — -8
issuance
costs
Proceeds
from the
issuance
of — — 215
commercial
paper
notes
Repayment
of
commercial — — -950
paper
notes
Dividends
paid to -30 — —
non-contr…
interests
Dividends
paid to -256 -256 -256
common
stockhold…
Proceeds
from
issuance
of common 34 1 38
stock
through
stock
plans
Purchase
of
treasury
shares and -103 -104 -54
restricted
stock unit
withholdi…
Other, net — — -1
Net cash
provided
by (used -355 -1,109 482
for)
financing
activities
Effect of
changes in
exchange -3 — —
rates on
cash
positions
Increase
(decrease)
in cash 721 -486 284
and cash
equivalen…
Cash and
cash
equivalen… 3,222 3,708 3,170
at
beginning
of period
Cash and
cash
equivalen… 3,943 3,222 3,454
at end of
period
7
NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
($ in
millions
except Three
share months September June 28, September
data) ended 27, 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP Gross $ 2,189 $ 2,002 $ 1,787
Profit
PPA -6 -5 -6
Effects
Restructu… 9 — —
Share-bas… -14 -12 -15
compensat…
Other -17 -9 -2
incidenta…
Non-GAAP
Gross $ 2,217 $ 2,028 $ 1,810
Profit
GAAP
Research $ -615 $ -604 $ -575
and
developme…
Restructu… -3 4 -1
Share-bas… -53 -54 -57
compensat…
Other -2 -4 -2
incidenta…
Non-GAAP
Research $ -557 $ -550 $ -515
and
developme…
GAAP
Selling,
general $ -313 $ -291 $ -286
and
administr…
PPA — — -1
effects
Restructu… -1 4 -2
Share-bas… -47 -39 -46
compensat…
Other -12 -12 -14
incidenta…
Non-GAAP
Selling,
general $ -253 $ -244 $ -223
and
administr…
GAAP Other
income $ -3 $ -5 $ -2
(expense)
Other -2 1 -1
incidenta…
Non-GAAP
Other $ -1 $ -6 $ -1
income
(expense)
GAAP
Operating $ 1,228 $ 1,071 $ 893
income
(loss)
PPA -36 -36 -38
effects
Restructu… 5 8 -3
Share-bas… -114 -105 -118
compensat…
Other -33 -24 -19
incidenta…
Non-GAAP
Operating $ 1,406 $ 1,228 $ 1,071
income
(loss)
GAAP
Financial $ -97 $ -97 $ -98
income
(expense)
Foreign
exchange -9 -5 -6
gain
(loss)
Other
financial -3 -5 -1
income
(expense)
Non-GAAP
Financial $ -85 $ -87 $ -91
income
(expense)
GAAP
Income tax $ -228 $ -189 $ -148
benefit
(provisio…
Income tax 9 16 25
effect
Non-GAAP
Income tax $ -237 $ -205 $ -173
benefit
(provisio…
8
($ in
millions
except Three
share months September June 28, September
data) ended 27, 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
Results
relating $ -4 $ -3 $ -1
to
equity-ac…
investees
Results
relating
to
equity-ac… — — 1
investees,
excluding
Foundry
investees1
Non-GAAP
Results
relating $ -4 $ -3 $ -2
to
equity-ac…
investees
GAAP Net
income $ 899 $ 782 $ 646
(loss)
Less: Net
income
(loss)
attributa… 15 15 15
to
non-contr…
interest
GAAP Net
income
(loss) $ 884 $ 767 $ 631
attributa…
to
stockhold…
GAAP Net
income
(loss) $ 884 $ 767 $ 631
attributa…
to
stockhold…
PPA -36 -36 -38
Effects
Restructu… 5 8 -3
Share-bas… -114 -105 -118
compensat…
Other -33 -24 -19
incidenta…
Other
adjustmen…
Adjustmen…
to
financial -12 -10 -7
income
(expense)
Income tax 9 16 25
effect
Results
relating
to
equity-ac… — — 1
investees,
excluding
Foundry
investees1
Non-GAAP
Net income
(loss) $ 1,065 $ 918 $ 790
attributa…
to
stockhold…
GAAP net
income
(loss) per
common
share $ 3.48 $ 3.02 $ 2.48
attributa…
to
stockhold…
- diluted
PPA -0.14 -0.14 -0.15
Effects
Restructu… 0.02 0.03 -0.01
Share-bas… -0.45 -0.41 -0.47
compensat…
Other -0.14 -0.09 -0.08
incidenta…
Other
adjustmen…
Adjustmen…
to
financial -0.05 -0.04 -0.02
income
(expense)
Income tax 0.04 0.06 0.10
effect
Results
relating
to
equity-ac… — — —
investees,
excluding
Foundry
investees1
Non-GAAP
net income
(loss) per
common
share $ 4.20 $ 3.61 $ 3.11
attributa…
to
stockhold…
-
diluted
Additional
Informati…
1.We
adjust our
results
relating
to
equity-ac…
investees
for those
results
from
investmen…
over which
NXP
has
significa…
influence,
but not
control,
and whose
business
activities
are not
related to
the core
operating
performan…
of NXP.
Our
equity-in…
in foundry
partners
are part
of our
long-term
core
operating
performan…
and
according…
those
results
comprise
the
Non-GAAP
Results
relating
to
equity-ac…
investees.
9
NXP Semiconductors
Table 5: Adjusted EBITDA and Free Cash Flow (unaudited)
Three Septem… June
($ in months 27, 28, Septemb…
milli… ended 2026 2026 28, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
Net $ 899 $ 782 $ 646
income
(loss)
Recon…
items
to
EBITDA
(Non-…
Finan…
(inco… 97 97 98
expen…
(Bene…
provi…
for 228 189 148
income
taxes
Depre…
and 123 114 132
impai…
Amort… 69 70 69
EBITDA $ 1,416 $ 1,252 $ 1,093
(Non-…
Recon…
items
to
adjus…
EBITDA
(Non-…
Resul…
of
equit…
inves… — — -1
exclu…
Found…
inves…
Restr… -5 -8 3
Share… 114 105 118
compe…
Other
incid… 22 20 19
items2
Adjus…
EBITDA $ 1,547 $ 1,369 $ 1,232
(Non-…
Trail…
twelve
month $ 5,421 $ 5,106 $ 4,648
adjus…
EBITDA
(Non-…
Addit…
Infor…
1.Ref…
to
Table
4
above
for
furth…
infor…
regar…
the
resul…
relat…
to
equit…
inves…
2.
Exclu…
depre…
and
impai…
or
amort…
relat…
to:
–other
incid… 11 4 —
items
($ in Three
milli… months
ended
Septem… June Septem…
27, 28, 28,
2026 2026 2025
Net
cash
provi…
by $ 1,256 $ 860 $ 585
(used
for)
opera…
activ…
Net
capit…
expen…
on -50 -69 -76
prope…
plant
and
equip…
Non-G…
free $ 1,206 $ 791 $ 509
cash
flow
Trail…
twelve
month
non-G… $ 3,504 $ 2,807 $ 1,924
free
cash
flow
Trail…
twelve
month
non-G…
free
cash 25 % 21 % 16 %
flow
as
perce…
of
Reven…
10