10-QPeriod: Q2 FY2026

NXP Semiconductors N.V. Quarterly Report for Q2 Ended Jun 28, 2026

Filed July 28, 2026For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) reported a strong second quarter for fiscal year 2026, demonstrating robust revenue growth and improved profitability. Revenue for the quarter reached $3,496 million, a significant 19.5% increase year-over-year, driven by broad-based strength across its key end markets, particularly Automotive and Industrial & IoT. The company also saw a substantial improvement in its gross margin, reaching 57.3% (GAAP), up from 53.4% in the prior year's comparable quarter, attributable to higher sales volumes and cost efficiencies. The year-to-date performance also reflects this positive trend, with revenue up 15.9% and gross margin at 56.8%. The company successfully integrated several strategic acquisitions from 2025, which are beginning to contribute to growth. Notably, the divestiture of the MEMS Sensors business in early 2026 generated a significant one-time gain, boosting the company's overall profitability for the period. NXPI continues to focus on operational improvements and strategic investments, reflected in its ongoing R&D spending and disciplined capital allocation, including returning capital to shareholders through dividends and share repurchases.

Key Highlights

  • 1Revenue increased by 19.5% year-over-year to $3,496 million in Q2 2026, driven by strong performance in Automotive (+12.1%) and Industrial & IoT (+38.3%).
  • 2GAAP Gross Margin improved to 57.3% in Q2 2026 from 53.4% in Q2 2025, reflecting higher volumes and cost efficiencies.
  • 3Operating income grew significantly to $1,071 million in Q2 2026, up from $687 million in Q2 2025, bolstered by revenue growth and gross margin expansion.
  • 4Year-to-date (YTD) revenue increased by 15.9% to $6,677 million, with YTD gross profit also showing strong improvement.
  • 5The company recognized a substantial gain of $627 million from the divestiture of its MEMS Sensors business in Q1 2026, significantly impacting year-to-date 'Other income (expense)'.
  • 6Cash flow from operations remained strong, totaling $1,653 million for the first six months of 2026, with the company ending the quarter with $3,222 million in cash and cash equivalents.
  • 7NXPI returned $360 million to shareholders in Q2 2026 through $256 million in cash dividends and $104 million in share repurchases.

Frequently Asked Questions

NXP's revenue growth of 19.5% year-over-year in Q2 2026 was primarily driven by strong demand across its key end markets, particularly the Automotive sector which saw a 12.1% increase, and the Industrial & IoT sector which experienced a substantial 38.3% surge. Growth in the Communication Infrastructure & Other segment also contributed significantly.

The divestiture of the MEMS Sensors business, completed in the first quarter of 2026, resulted in a one-time gain of $627 million. This gain was recorded under 'Other income (expense)' and significantly boosted the company's overall net income and operating income for the first six months of the year.

NXP maintains a strong liquidity position, with $3,222 million in cash and cash equivalents as of June 28, 2026, complemented by an undrawn $3,000 million revolving credit facility. The company anticipates that its current funds, along with anticipated cash generated from operations, will be sufficient to meet its obligations for at least the next twelve months, covering operations, working capital, capital expenditures, and dividends.

NXP has actively managed its debt. In Q2 2026, the company repaid $750 million in senior unsecured notes. Total debt decreased by $1,246 million from December 31, 2025, to $10,976 million as of June 28, 2026. The company continues to utilize fixed-rate notes and has outstanding EIB loans, with a focus on managing its net debt position.