01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
NXP Semiconductors N.V.
(NXPI) reported a strong first quarter of 2026, with revenue reaching $3,181 milliona, 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 millionb, 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 millionc 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.
02—Key points
Key Highlights
- Revenue increased 12.2% year-over-year to $3,181 million, driven by broad-based growth across all end markets.
- Net 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.
- The company recorded a significant $627 million gain on the sale of its MEMS Sensors business in the current quarter.
- GAAP gross margin improved to 56.2% from 55.0% in the prior year, attributed to lower manufacturing costs and cost efficiencies.
- Operating cash flow was strong at $793 million, and the company ended the quarter with $3,708 million in cash and cash equivalents.
- Capital returns to shareholders amounted to $358 million, including $256 million in dividends and $102 million in share repurchases.
- Significant equity investments were made in the VSMC foundry joint venture, with $189 million contributed in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, NXP Semiconductors N.V. kept $0.36.
- Revenue$3.18B100.0%
- Cost of revenue−$1.39B43.8%
- Gross profit$1.79B56.2%
- Operating costs−$283.0M8.9%
- Operating income$1.50B47.3%
- Interest, other & tax−$372.0M11.7%
- Net income$1.13B35.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.18B$2.83B | +12.2% |
| Cost of Revenue | $1.39B$1.27B | +9.3% |
| Gross Profit | $1.79B$1.56B | +14.6% |
| R&D Expenses | $588.00M$547.00M | +7.5% |
| SG&A Expenses | $284.00M$281.00M | +1.1% |
| Operating Expenses | $904.00M$855.00M | +5.7% |
| Operating Income | $1.50B$723.00M | +108.2% |
| Interest Expense | $114.00M$106.00M | +7.5% |
| Net Income | $1.13B$497.00M | +128.0% |
| EPS (Basic) | $4.44$1.93 | +130.1% |
| EPS (Diluted) | $4.43$1.92 | +130.7% |
| Shares Outstanding (Basic) | 252.72M253.71M | −0.4% |
| Shares Outstanding (Diluted) | 253.53M255.02M | −0.6% |
05—Questions
Frequently Asked Questions
What were the main drivers of NXP's revenue growth in Q1 2026?
NXP's revenue grew by 12.2% year-over-year to $3,181 million, primarily driven by strong performance across all its end markets. The Automotive sector saw a 6.5% increase, Industrial & IoT grew by 23.6%, Mobile increased by 15.7%, and Communication Infrastructure & Other expanded by 20.6%.
How did the divestiture of the MEMS Sensors business impact the financial results?
The divestiture of the MEMS Sensors business, completed on February 2, 2026, resulted in a significant gain on sale of $627 million, which was recognized in 'Other income (expense)' in the Consolidated Statements of Operations. This gain substantially contributed to the increase in net income and operating income for the quarter.
What is NXP's current liquidity position and how is it managing capital?
NXP maintains a strong liquidity position, with $3,708 million in cash and cash equivalents as of March 29, 2026. Additionally, the company has access to a $3,000 million revolving credit facility, providing total liquidity of $6,708 million. In Q1 2026, NXP returned $358 million to shareholders through dividends ($256 million) and share repurchases ($102 million).
What is the outlook for NXP's strategic investments, particularly in joint ventures?
NXP continues to make significant strategic investments, notably in the VSMC foundry joint venture. In the first quarter of 2026, NXP contributed $189 million to support VSMC's long-term capacity infrastructure. The company has committed to invest an additional $773 million in equity through 2027 and has a substantial purchase commitment with VSMC over the lifetime of the factory.
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