NXP Semiconductors N.V. Q3 2026 Earnings Recap

NXP shares fell 0.7% after earnings, a broadly flat reaction to results that exceeded the company’s outlook but included a sharp expected slowdown in mobile. Q4 revenue is guided up 2% sequentially, with automotive and industrial growth offsetting a mid-teens year-over-year decline in mobile.

Key Takeaways

• Q3 revenue was $3.79 billion, up 19% year over year (22% excluding the MEMS sensor business); non-GAAP EPS was $4.20, up 35%.
• Non-GAAP gross margin reached 58.6%, up 160 basis points year over year, while operating margin was 37.1%, up 33 basis points.
• Automotive revenue exceeded $2 billion for the first time and grew 17% excluding sensors; management cited content gains in a flattish vehicle-production environment.
• Industrial and IoT revenue rose 39% to $820 million, with industrial up nearly 50%. Data center revenue is now expected to exceed the earlier $500 million outlook, with the business projected to surpass $1 billion in a couple of years.
• Q4 revenue guidance is $3.85 billion, up 15% year over year. Automotive is expected to grow at a low-double-digit rate and industrial and IoT at a high-20% rate, while mobile is expected to decline in the mid-teens.