Management commentary
EINDHOVEN, The Netherlands, July 28, 2026 – NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, which ended June 28, 2026.
1“NXP delivered second-quarter revenue of $3.5 billion, up 19 percent year-on-year and 10 percent sequentially, with growth across all end markets and all regions.
This performance reflects the strength of our company-specific growth drivers, particularly in Software-Defined Vehicles and Physical AI, with Data Center emerging as an additional growth engine.
Our strong first-half results and third-quarter guidance reinforce our confidence in achieving our financial commitments to drive long-term shareholder value.
Underlying these results, AI is moving from the cloud into the physical world— into vehicles, factories, and robots — and it lands directly in the markets where NXP has leadership positions.
NXP's portfolio of processing, connectivity, and security solutions, positions us to enable next-generation edge intelligence for our customers,” said Rafael Sotomayor, NXP President and Chief Executive Officer.
Results
2Revenue was $3.50 billion, up 19 percent year-on-year;
GAAP gross margin was 57.3 percent, GAAP operating margin was 30.6 percent and GAAP diluted Net Income per Share was $3.02;
8Non-GAAP gross margin was 58.0 percent, non-GAAP operating margin was 35.1 percent, and non-GAAP diluted Net Income per Share was $3.61;
Cash flow from operations was $860 million, with net capex investments of $69 million, resulting in non-GAAP free cash flow of $791 million or 22.6 percent of revenue;
Capital return
3Capital return during the quarter was $360 million, representing 45.5 percent of second quarter non-GAAP free cash flow.
5Dividends paid during the quarter were $256 million, and share buybacks were $104 million.
6After the end of the second quarter, between June 29, 2026, and July 24, 2026, NXP executed via a 10b5-1 program additional share repurchases totaling $32 million; and
Corporate events
4On April 20, 2026, NXP repaid the $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due Jun e 18, 2026, at par using available cash.
Results
Summary of Reported Second Quarter 2026 ($ millions, unaudited ) (1)
Outlook
Guidance for the Third Quarter 2026: ($ millions, except Per Share data) (1)
GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(5) million; Share-based Compensation, $(14) million; Other Incidentals, $(5) million;
7GAAP Operating Income (loss) is expected to include PPA effects, $(36) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(26) million;
GAAP Financial Income (expense) is expected to include Other financial expense $(10) million;
GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(1) million;
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.
Results
Table 5: Adjusted EBITDA and Free Cash Flow (unaudited)
67 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.