NXP Semiconductors (NASDAQ:NXPI – Get Free Report) issued its earnings results on Tuesday. The semiconductor provider reported $3.61 EPS for the quarter, topping the consensus estimate of $3.52 by $0.09, FiscalAI reports. The business had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.47 billion. NXP Semiconductors had a return on equity of 28.54% and a net margin of 22.56%.The firm’s revenue was up 19.5% compared to the same quarter last year. During the same quarter last year, the company earned $2.72 EPS. NXP Semiconductors updated its Q3 2026 guidance to 3.890-4.320 EPS.
Here are the key takeaways from NXP Semiconductors’ conference call:
- Strong Q2 performance: Revenue reached a record $3.5 billion, up 19% year over year, while non-GAAP operating margin expanded to 35.1% and EPS was $3.61, all above guidance.
- Broad-based growth is continuing: Automotive revenue rose 12% year over year, or 17% excluding the divested MEMS business, while Industrial and IoT increased 38% and Communications Infrastructure grew 41%. Management said company-specific growth drivers grew in the mid-20% range and represented roughly one-third of Q2 revenue.
- Third-quarter outlook improved: NXP guided to $3.75 billion in Q3 revenue, up 7% sequentially, with non-GAAP operating margin expected to reach 36.9% and EPS of $4.11 at the midpoint. Management also reported improving visibility, book-to-bill above one, and growing backlogs.
- AI and data-center opportunities are expanding: Data-center revenue is expected to exceed $500 million in 2026, driven by control-plane processors and switching products. The physical-AI design-win funnel grew to more than $1.5 billion across over 200 customers, while AI-enabled processors are expected to represent about 15% of Industrial and IoT processor revenue in 2026.
- Cost and supply-chain risks remain: NXP has begun selective pricing actions to offset inflation in inputs such as back-end materials, with additional foundry access-fee pressure potentially emerging in late 2026 or 2027. Management also said it has not yet seen broad automotive restocking, and mobile revenue is expected to decline year over year in Q3 amid component constraints.
NXP Semiconductors Trading Up 4.0%
Shares of NASDAQ:NXPI traded up $9.56 on Thursday, hitting $250.54. 2,053,295 shares of the company’s stock were exchanged, compared to its average volume of 3,529,464. The stock has a market capitalization of $63.25 billion, a price-to-earnings ratio of 21.38, a price-to-earnings-growth ratio of 1.08 and a beta of 1.79. NXP Semiconductors has a 12 month low of $183.00 and a 12 month high of $339.95. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.24 and a quick ratio of 1.55. The business’s 50 day simple moving average is $293.31 and its two-hundred day simple moving average is $252.87.
NXP Semiconductors Dividend Announcement
Analyst Ratings Changes
A number of research analysts have commented on the stock. Raymond James Financial increased their price target on shares of NXP Semiconductors from $250.00 to $300.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price target on shares of NXP Semiconductors in a research note on Wednesday. TD Cowen decreased their price objective on NXP Semiconductors from $340.00 to $290.00 and set a “buy” rating on the stock in a report on Wednesday. Weiss Ratings upgraded NXP Semiconductors from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 4th. Finally, Truist Financial increased their price target on shares of NXP Semiconductors from $255.00 to $310.00 and gave the company a “buy” rating in a research report on Wednesday, April 29th. Sixteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, NXP Semiconductors presently has a consensus rating of “Moderate Buy” and a consensus target price of $307.05.
Get Our Latest Analysis on NXP Semiconductors
Insider Activity
In other news, EVP Andrew Micallef sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $315.57, for a total value of $315,570.00. Following the completion of the sale, the executive vice president owned 8,942 shares of the company’s stock, valued at approximately $2,821,826.94. This represents a 10.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher L. Jensen sold 1,746 shares of NXP Semiconductors stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $316.53, for a total value of $552,661.38. Following the completion of the transaction, the executive vice president owned 3,643 shares in the company, valued at $1,153,118.79. This trade represents a 32.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.05% of the company’s stock.
Hedge Funds Weigh In On NXP Semiconductors
A number of institutional investors have recently modified their holdings of NXPI. Aptus Capital Advisors LLC grew its position in NXP Semiconductors by 1.3% during the fourth quarter. Aptus Capital Advisors LLC now owns 3,464 shares of the semiconductor provider’s stock valued at $752,000 after buying an additional 43 shares during the period. IHT Wealth Management LLC grew its stake in NXP Semiconductors by 4.6% during the 2nd quarter. IHT Wealth Management LLC now owns 1,193 shares of the semiconductor provider’s stock valued at $261,000 after acquiring an additional 52 shares in the last quarter. Equitable Holdings Inc. increased its holdings in shares of NXP Semiconductors by 1.4% in the fourth quarter. Equitable Holdings Inc. now owns 3,813 shares of the semiconductor provider’s stock valued at $828,000 after purchasing an additional 54 shares during the last quarter. Larson Financial Group LLC boosted its position in shares of NXP Semiconductors by 1.7% during the 3rd quarter. Larson Financial Group LLC now owns 4,112 shares of the semiconductor provider’s stock valued at $936,000 after acquiring an additional 67 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in shares of NXP Semiconductors by 2.7% in the 2nd quarter. Geneos Wealth Management Inc. now owns 2,757 shares of the semiconductor provider’s stock valued at $602,000 after buying an additional 73 shares during the period. Hedge funds and other institutional investors own 90.54% of the company’s stock.
NXP Semiconductors News Summary
Here are the key news stories impacting NXP Semiconductors this week:
- Positive Sentiment: Q2 results exceeded expectations: NXP reported adjusted earnings of $3.61 per share versus the $3.52 consensus, while revenue rose 19.5% year over year to $3.50 billion, ahead of the $3.47 billion estimate. Growth was broad-based across end markets and regions. NXP Semiconductors Reports Second Quarter 2026 Results
- Positive Sentiment: Forecast points to continued momentum: Third-quarter revenue guidance of $3.7 billion to $3.9 billion implies a midpoint above Wall Street expectations, while adjusted EPS guidance of $3.89 to $4.32 also brackets a midpoint above consensus. Management cited software-defined vehicles, physical AI and emerging data-center demand as key growth drivers. A Solid Q2 and Improved Q3 Guidance
- Positive Sentiment: Several analysts remain constructive: Morgan Stanley raised its price target to $338 and maintained an overweight rating, while Needham reiterated its buy rating with a $300 target. Analysts also highlighted NXP’s expanding physical-AI design-win pipeline and potential growth in vehicles, factories and robotics. Morgan Stanley Price Target Increase
- Neutral Sentiment: Analyst views are mixed: TD Cowen lowered its target to $290 but retained a buy rating, while Wells Fargo cut its target to $280 and kept an equal-weight rating. This suggests analysts see upside but are taking a more cautious stance on near-term execution and valuation.
- Negative Sentiment: Expectations remain high: NXPI initially declined after the earnings release despite the beat and raised outlook. Investors appear to be awaiting clearer evidence of an automotive-sector recovery, while some valuation analyses suggest the stock is near fair value based on cash flow. NXP Declines Despite Results and Outlook
About NXP Semiconductors
NXP Semiconductors N.V. is a global semiconductor company headquartered in Eindhoven, the Netherlands, that designs and supplies mixed-signal and standard product solutions for a broad range of end markets. The company focuses on enabling secure connections and infrastructure for embedded applications, developing technologies used across automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure segments. NXP’s offerings target customers that require reliable, secure, and high-performance semiconductor components for connected devices and systems.
Product lines include microcontrollers and application processors, secure elements and authentication technologies, RF and high-power analog components, connectivity solutions, and vehicle networking and infotainment systems.
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