NXP revenue rises 19% and company adds $5 billion to buyback

NXP Semiconductors reported third-quarter revenue of $3.79 billion, up 19% from a year earlier and 8% from the second quarter, and guided to further growth in the fourth quarter, according to its earnings release filed with an 8-K.

The chipmaker posted GAAP earnings of $3.48 per diluted share and non-GAAP earnings of $4.20 per share.

Margins and cash

GAAP gross margin was 57.8%, and non-GAAP gross margin was 58.6%, the release said. The non-GAAP operating margin was 37.1%. NXP generated $1.21 billion of free cash flow in the quarter.

The company added $5 billion to its share buyback authorization.

Fourth-quarter guidance

NXP guided fourth-quarter revenue to $3.75 billion to $3.95 billion, with a midpoint of $3.85 billion, which would be up 15% from a year earlier and 2% from the third quarter. It expects a non-GAAP gross margin of 58.5% to 59.5% and a non-GAAP operating margin of 36.6% to 38.3%.

Rafael Sotomayor is president and chief executive.

Why it matters

NXP sells much of its output to automakers and industrial customers, two markets that went through a long inventory correction. Revenue growing 19% from a year earlier, with guidance pointing to another year-over-year gain of about 15% at the midpoint, indicates that recovery has taken hold.

The extra $5 billion in buyback capacity also signals management confidence in the company's cash generation. Investors will listen for commentary on auto demand and pricing on the earnings call.

Sources

1. NXP Semiconductors N.V. Form 8-K with third-quarter 2026 results, filed Oct. 27, 2026 (accession 0001413447-26-000057)

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