NXP earnings rose in the third quarter of 2026 as revenue increased 19% from a year earlier to $3.79 billion. The semiconductor company also said its board authorized an additional $5 billion in share repurchases after the quarter ended.

Key Takeaways

  • GAAP diluted earnings per share rose to $3.48 from $2.48 a year earlier.
  • The new buyback authorization is in addition to $1.3 billion remaining under the prior authorization.
  • NXP forecast fourth-quarter revenue of $3.75 billion to $3.95 billion.

NXP earnings and revenue growth

For the quarter ended September 27, revenue rose from $3.17 billion a year earlier. GAAP net income attributable to stockholders increased to $884 million from $631 million, while non-GAAP diluted earnings per share rose to $4.20 from $3.11.

Chief Executive Officer Rafael Sotomayor attributed the performance to accelerating contributions from company-specific growth drivers in automotive and industrial markets, as well as continued momentum in data center infrastructure.

NXP generated $1.26 billion in operating cash flow and reported $50 million in net capital investments, resulting in non-GAAP free cash flow of $1.21 billion.

ItemDetails
AutomotiveThird-quarter revenue of $2.07 billion, up 13% year on year
Industrial and IoTRevenue of $802 million, up 39% year on year
MobileRevenue of $411 million, down 4% year on year
Communications infrastructure and otherRevenue of $503 million, up 54% year on year

Automotive leads sales as other segments grow

Automotive remained NXP’s largest revenue category, while industrial and IoT and communications infrastructure recorded faster year-on-year growth. Mobile revenue declined.

During the quarter, NXP broke ground on an assembly and test site expansion in Malaysia. It also announced that BMW Group would deploy its ultra-wideband ranging and radar solutions across its fleet, starting with selected 2026 vehicle programs.

Buyback authorization and fourth-quarter outlook

The $5 billion repurchase authorization was approved in October, after the third quarter closed. During the quarter itself, NXP returned $359 million to shareholders, comprising $256 million in dividends and $103 million in share buybacks.

For the fourth quarter of 2026, NXP projected revenue of $3.75 billion to $3.95 billion. It forecast GAAP diluted earnings per share of $3.36 to $3.79 and non-GAAP diluted earnings per share of $4.14 to $4.58. These figures are guidance, not reported results.

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