NXP Semiconductors reported first‑quarter 2026 revenue of $3.18 billion, a 12% year‑over‑year increase, and adjusted earnings per share of $3.05, beating the consensus estimate of $2.98 by $0.07. The company’s revenue growth was driven by a 6% rise in automotive revenue to $1.78 billion, a 24% jump in industrial‑IoT revenue to $628 million, and a 16% increase in mobile revenue to $391 million. Communications‑infrastructure sales also grew 21% to $380 million, while data‑center exposure is projected to exceed $500 million in 2026.
Gross margin on a non‑GAAP basis was 57.1% and operating margin was 33.1%, both higher than the 31.9% operating margin reported in Q1 2025 and only slightly below the 34.6% margin of Q4 2025. The company’s guidance for Q2 2026 calls for revenue of $3.35 billion to $3.55 billion—well above the consensus estimate of $3.27 billion—and adjusted EPS of $3.29 to $3.72. Management also projected an operating‑margin range of 33.8% to 35.6% for the quarter, indicating confidence in continued margin expansion.
The one‑time gain from the sale of NXP’s MEMS Sensors business—$627 million on $878 million of cash proceeds—boosted GAAP earnings but was excluded from the non‑GAAP EPS figure. The divestiture freed capital for investment in high‑growth areas such as automotive software‑defined vehicles, physical AI, and data‑center solutions, and it aligns with the company’s strategy to focus on core semiconductor markets.
Management emphasized that the momentum built in Q1 2026 is expected to accelerate through the remainder of 2026, with progress increasingly extending across the core of the business. “NXP delivered quarterly revenue of $3.18 billion, up 12% year over year, with broad‑based improvement across all of our focus end markets, led by our company‑specific growth drivers. Our growth reflects sustained investment, disciplined execution, and growing customer adoption of our differentiated portfolio, particularly in industrial and automotive processing that supports software‑defined vehicles and physical AI,” said President and CEO Rafael Sotomayor. “The momentum we have built is expected to accelerate through the remainder of 2026, with progress increasingly extending across the core of our business.” Sotomayor added, “We remain committed to disciplined investment, margin expansion, and portfolio optimization to drive sustainable, long‑term value for our shareholders.”
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