10-Q · April 28, 2026
NXP reported Q1 2026 revenue of $3,181 million, up 12.2% year‑over‑year, with GAAP diluted EPS of $4.43. Gross margin improved to 56.2% and operating margin expanded to 47.3%, driven largely by a $627 million gain on…
Earnings analysis · 10-Q
NXPI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
NXP delivered a strong Q2 recovery, with revenue of $3.496 billion up 19.5% year over year and 9.9% sequentially, while GAAP gross margin expanded to 57.3% and operating margin improved to 30.6% from 23.5% a year…
Read full summary
NXP delivered a strong Q2 recovery, with revenue of $3.496 billion up 19.5% year over year and 9.9% sequentially, while GAAP gross margin expanded to 57.3% and operating margin improved to 30.6% from 23.5% a year earlier. Growth was broad based across all four end markets, led by Communication Infrastructure & Other and Industrial & IoT, and Q2 free cash flow was $791 million. Sequential GAAP earnings comparisons are less favorable because Q1 included a $627 million MEMS divestiture gain, but underlying non-GAAP operating margin increased to 35.1% from 33.1% in Q1, alongside meaningful net-debt reduction.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.02
What stood out
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Revenue accelerated sequentially and year over year
Q2 revenue rose $570 million, or 19.5% year over year, to $3.496 billion and increased $315 million, or 9.9%, from $3.181 billion in Q1 2026.
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Gross margin expanded 3.9 points year over year
GAAP gross margin expanded to 57.3% from 53.4% a year ago and 56.2% sequentially, driven by higher volume, improved factory utilization and manufacturing-cost efficiency initiatives.
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Year-over-year profitability improved sharply
GAAP operating margin reached 30.6%, up from 23.5% in Q2 2025. GAAP diluted EPS was $3.02, up from $1.75 a year ago.
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Broad-based end-market growth
All end markets grew year over year: Communication Infrastructure & Other rose 41.3% to $452 million, Industrial & IoT rose 38.3% to $755 million, Automotive rose 12.1% to $1.938 billion, and Mobile rose 6.0% to $351 million.
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Strong cash conversion with low capex intensity
Q2 operating cash flow was $860 million and net capex was $69 million, producing $791 million of free cash flow; capex represented 2.0% of quarterly revenue.
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Balance sheet deleveraging continued
Total debt declined $1.246 billion from December 31, 2025 to $10.976 billion, while net debt decreased $1.201 billion to $7.754 billion after repayment of $750 million of senior notes.
What to watch
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Sequential GAAP earnings fell after divestiture gain
GAAP operating income fell $434 million, or 28.8% sequentially, to $1.071 billion and GAAP diluted EPS declined from $4.43 in Q1 2026 to $3.02, principally because Q1 included a $627 million gain on the MEMS Sensors divestiture.
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Cash declined while near-term maturities remain
Cash and equivalents declined $486 million sequentially to $3.222 billion at June 28, 2026, while total debt remained substantial at $10.976 billion; $999 million of notes principal is payable within 12 months.
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Receivables and capacity commitments used cash
Working-capital and supply-support uses pressured operating cash flow in the first half: receivables and other current assets increased $101 million and payments securing production supply increased other non-current assets by $230 million, including $243 million for VSMC capacity infrastructure.
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Mobile demand declined sequentially
Mobile revenue was the only end market to decline sequentially, falling $40 million, or 10.2%, to $351 million in Q2 2026.
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No risk-factor updates; interest burden persists
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K; nevertheless, the company has $2.655 billion of future interest payments associated with its fixed-rate notes, including $381 million within 12 months.
Management's outlook
The 10-Q MD&A does not provide quantitative forward revenue or EPS guidance; outlook is deferred to the earnings release/call.
Earlier filings 4
10-K · February 19, 2026
NXP reported full-year 2025 revenue of $12,269 million, down from $12,614 million in 2024, while continuing to execute M&A to bolster automotive, AI-edge and in-vehicle networking capabilities. The company presents a…
10-Q · April 29, 2025
NXP Semiconductors reported revenue of $2.84 billion for Q1 2025, a decrease from $3.13 billion in Q1 2024. Although there was an EPS beat at $1.92 against estimates of $2.58, the overall financial performance showed…
10-Q · November 5, 2024
NXP reported Q3 revenue of $3,250,000,000 (down $184,000,000 YoY) with gross profit of $1,866,000,000 and operating income of $990,000,000. Gross margin was steady at ~57.4% while operating margin expanded to ~30.5%;…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.