Summary
NXP Semiconductors N.V. (NXPI) reported a strong first quarter of 2026, with revenue reaching $3,181 million, a significant 12.2% increase year-over-year. This growth was broad-based across its key end markets, including Automotive, Industrial & IoT, Mobile, and Communication Infrastructure & Other, demonstrating the company's robust market position. The company demonstrated improved profitability with a GAAP gross margin of 56.2% and a GAAP operating margin of 47.3%. Notably, the net income attributable to stockholders surged to $1,122 million, resulting in diluted EPS of $4.43, a substantial increase from $1.92 in the prior year's quarter. This performance was bolstered by a significant gain of $627 million from the divestiture of its MEMS Sensors business. NXP also maintained a healthy liquidity position with cash and cash equivalents totaling $3,708 million and strong operating cash flow of $793 million, enabling the company to return capital to shareholders through dividends and share repurchases, totaling $358 million in the quarter. The company continues to focus on strategic investments, such as its equity contributions to the VSMC foundry joint venture.
Financial Highlights
54 data points| Revenue | $3.18B |
| Cost of Revenue | $1.39B |
| Gross Profit | $1.79B |
| R&D Expenses | $588.00M |
| SG&A Expenses | $284.00M |
| Operating Expenses | $904.00M |
| Operating Income | $1.50B |
| Interest Expense | $114.00M |
| Net Income | $1.13B |
| EPS (Basic) | $4.44 |
| EPS (Diluted) | $4.43 |
| Shares Outstanding (Basic) | 252.72M |
| Shares Outstanding (Diluted) | 253.53M |
Key Highlights
- 1Revenue increased 12.2% year-over-year to $3,181 million, driven by broad-based growth across all end markets.
- 2Net income attributable to stockholders more than doubled to $1,122 million from $490 million in the prior year, leading to diluted EPS of $4.43, up from $1.92.
- 3The company recorded a significant $627 million gain on the sale of its MEMS Sensors business in the current quarter.
- 4GAAP gross margin improved to 56.2% from 55.0% in the prior year, attributed to lower manufacturing costs and cost efficiencies.
- 5Operating cash flow was strong at $793 million, and the company ended the quarter with $3,708 million in cash and cash equivalents.
- 6Capital returns to shareholders amounted to $358 million, including $256 million in dividends and $102 million in share repurchases.
- 7Significant equity investments were made in the VSMC foundry joint venture, with $189 million contributed in the quarter.