Key Highlights

  • Third-quarter revenue was $3,786 million, up 19% year over year and 8% sequentially, above the $3.65 billion to $3.85 billion guide.
  • Non-GAAP diluted EPS was $4.20 against $3.11 a year earlier; GAAP diluted EPS was $3.48.
  • Non-GAAP operating margin widened to 37.1% from 33.8%.
  • Industrial and IoT revenue rose 39% and communication infrastructure 54%, while mobile fell 4%.
  • The board authorized a new $5 billion buyback, on top of $1.3 billion remaining.

NXP Earnings: What Is Behind the Beat and the New $5 Billion Buyback?

NXP Semiconductors (NASDAQ:NXPI) reported third-quarter results on Tuesday, October 27, 2026. Revenue was $3,786 million, up 19% from a year earlier and 8% from the second quarter, and above the guidance range of $3.65 billion to $3.85 billion. Non-GAAP diluted EPS was $4.20 against $3.11, and GAAP diluted EPS was $3.48 against $2.48. As screened, the estimate was $4.12 and the surprise was 2.01%.

After the quarter, the board authorized a $5 billion share repurchase program, in addition to $1.3 billion remaining under the prior authorization. The company guided fourth-quarter revenue of $3.75 billion to $3.95 billion.

NXP Segments: Which Businesses Drove 19% Revenue Growth?

Automotive revenue was $2,070 million, up 13% year over year and 7% sequentially, and remains the largest business at about 55% of revenue as calculated. Industrial and IoT rose 39% to $802 million, and communication infrastructure and other rose 54% to $503 million.

Mobile was the exception at $411 million, down 4% year over year but up 17% from the second quarter, when revenue was $3.50 billion and non-GAAP EPS $3.61.

The company frames its growth drivers as software-defined vehicles, data center infrastructure and trusted physical AI.

NXP Margins and Cash: How Profitable Was the Quarter?

Non-GAAP gross margin was 58.6% and GAAP gross margin 57.8%. Non-GAAP operating margin was 37.1% against 33.8% a year earlier and within the 36.0% to 37.6% guide, while GAAP operating margin was 32.4% against 28.1%.

Non-GAAP net income attributable to stockholders was $1,065 million and GAAP net income $884 million. Operating cash flow was $1,256 million and net capital expenditure about $50 million, leaving non-GAAP free cash flow of $1,206 million, or 31.9% of revenue.

The company returned $359 million, or 29.8% of free cash flow: $256 million of dividends and $103 million of buybacks.

NXP Guidance: What Does the Fourth-Quarter Range Imply?

The fourth-quarter revenue guide of $3.75 billion to $3.95 billion implies a change of minus 1% to plus 4% sequentially and growth of 12% to 18% year over year, with a midpoint of $3.85 billion. Non-GAAP gross margin is guided to 58.5% to 59.5% and non-GAAP operating margin to 36.6% to 38.3%.

Non-GAAP diluted EPS is guided to $4.14 to $4.58, with a midpoint of $4.36, and GAAP diluted EPS to $3.36 to $3.79. The non-GAAP tax rate is assumed at 17.0% to 18.0% on 253.8 million diluted shares.

The release did not include a full-year outlook.

NXP Next Steps: What Should Be Watched After the Quarter?

Key checkpoints are whether fourth-quarter revenue lands near the $3.85 billion midpoint, how quickly mobile recovers from its year-over-year decline, and how fast the new $5 billion authorization is used relative to the $103 million repurchased in the third quarter. Automotive momentum tied to software-defined vehicles and industrial strength remain the central swing factors for the next report.