NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote <\/p>\n
Industrial & IoT revenues rose 38% year over year to $755 million, benefiting from strong adoption of i.MX, RT and MCX processing platforms across factory automation and industrial applications. <\/p>\n
Communication Infrastructure & Other revenues climbed 41% year over year to $452 million, supported by increasing data center networking demand and continued ramp-ups of UCODE RFID products. <\/p>\n
Mobile revenues totaled $351 million, up 6% year over year, reflecting stable demand for secure mobile transaction solutions despite normal seasonal trends. <\/p>\n
NXPI’s AI, Data Center Businesses Gain Momentum <\/p>\n
Management highlighted AI as an increasingly important long-term growth driver, noting that AI workloads are moving beyond cloud infrastructure into vehicles, factories and robotics markets where NXP already maintains leadership positions. <\/p>\n
The company reiterated that its 2026 data center revenues are expected to exceed $500 million compared with roughly $200 million in 2025. Growth is being driven by demand for control-plane processors, networking, rack management, cooling, power management and security applications used in hyperscale AI infrastructure. <\/p>\n
NXPI’s Profitability Improves <\/p>\n
Non-GAAP gross profit increased to $2.03 billion, while non-GAAP gross margin expanded 150 basis points year over year to 58.0%. Non-GAAP operating income rose 31% year over year to $1.23 billion, with operating margin improving 310 basis points to 35.1%, reflecting favorable product mix and higher operating leverage. <\/p>\n
NXPI’s Strong Cash Generation Supports Shareholder Returns <\/p>\n
NXP generated $860 million in operating cash flow during the quarter. Net capital expenditures totaled $69 million, resulting in non-GAAP free cash flow of $791 million, representing 22.6% of revenues. <\/p>\n
The company returned $360 million to shareholders during the quarter through $256 million in dividends and $104 million in share repurchases. Following quarter-end, NXP repurchased an additional $32 million of shares under its 10b5-1 program. The company also repaid $750 million of senior unsecured notes using available cash. <\/p>\n
NXPI Guides Strong Third Quarter <\/p>\n
For the third quarter of 2026, NXP expects revenues between $3.65 billion and $3.85 billion. At the midpoint, revenues of $3.75 billion imply 7% sequential growth and 18% year-over-year growth. <\/p>\n
The company projects non-GAAP gross margin of 58.5% at the midpoint, and non-GAAP earnings per share of $4.11, indicating continued operating leverage as demand strengthens across its key markets. <\/p>\n
Zacks Rank & Other Stocks to Consider <\/p>\n
NXPI currently carries a Zacks Rank #2 (Buy). <\/p>\n
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. <\/p>\n
Shares of Analog Devices have rallied 37.1% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 59.4% year over year. <\/p>\n
Shares of Applied Materials have skyrocketed 101.1% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 4 cents over the past 30 days, indicating a rise of 28.9% year over year. <\/p>\n
Cisco Systems shares have surged 48.7% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report<\/a> <\/p>\n Analog Devices, Inc. (ADI) : Free Stock Analysis Report<\/a> <\/p>\n Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report<\/a> <\/p>\n Applied Materials, Inc. (AMAT) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n