NXP Earnings: Strong Q1 Results and Guidance
NXP earnings showed a strong Q1 on April 28, 2026 and raised Q2 guidance on industrial and automotive demand, sending shares up about 15% after-hours.
KEY TAKEAWAYS
- Reported Q1 revenue of $3.18 billion with broad Automotive and Industrial strength.
- Guided Q2 revenue to $3.35-$3.55 billion and non-GAAP EPS to $3.29-$3.72, above estimates.
- Recorded a $627 million gain from the MEMS Sensors sale and non-GAAP free cash flow of $714 million.
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NXP Semiconductors (NXPI) reported first-quarter results on April 28, 2026, and forecast stronger second-quarter growth as industrial and automotive chip demand recovered. The company’s guidance and results pushed the stock sharply higher in after-hours trading.
Q1 Results and Profitability
For the quarter ended March 29, 2026, NXP reported revenue of $3.18 billion, up 12% year on year. Automotive revenue reached $1.782 billion, a 6% increase, while Industrial & IoT rose 24% to $628 million. Mobile revenue grew 16% to $391 million, and Communication Infrastructure & Other climbed 21% to $380 million.
The 8-K filing showed GAAP operating income of $1.505 billion, with a 47.3% operating margin. GAAP net income was $1.133 billion, and GAAP diluted earnings per share rose 130% to $4.43. Non-GAAP diluted EPS increased 16% to $3.05, with a non-GAAP operating margin of 33.1%. Operating cash flow was $793 million, and non-GAAP free cash flow totaled $714 million, equal to 22.4% of revenue.
Guidance and Capital Position
NXP’s Q2 guidance projects revenue between $3.35 billion and $3.55 billion and non-GAAP diluted EPS of $3.29 to $3.72, both above analyst estimates. The company attributed the outlook to broad-based growth led by industrial demand and automotive processing for software-defined vehicles and physical AI. Shares rose about 15% in extended trading after the announcement. Rafael Sotomayor, president and CEO, said the momentum is expected to accelerate through 2026.
The 10-Q disclosed the sale of the MEMS Sensors business for $878 million in cash, generating a $627 million gain recorded in the quarter. The filing showed cash of $3.708 billion and total debt of $11.724 billion, leaving net debt of $8.016 billion after repaying $500 million of notes. The company returned $358 million to shareholders through dividends and share repurchases.
