NXP's third-quarter revenue reaches $3.8 billion, up 19 percent

What happened

NXP Semiconductors reported on Tuesday 27 October that its third-quarter revenue was $3.79 billion, up 19 percent from a year earlier and 8 percent from the second quarter. ^{[1, 3]}

Chief executive Rafael Sotomayor said the quarter was 'driven by accelerating contributions from our company-specific growth drivers in automotive and industrial as well as continued momentum in data center infrastructure.' The board also authorized $5 billion of share repurchases on top of $1.3 billion left under the earlier authorization, the company said. ^{[1, 4]}

Why it matters

All four of NXP's end markets brought in more than in the second quarter, and three of the four were higher than a year earlier. The company guided fourth-quarter revenue to $3.75 billion to $3.95 billion, which it said would be 12 to 18 percent above a year earlier. ^{[1, 4]}

Sotomayor said 'software-defined vehicles,' cars run largely by central computers and software, 'drive increasing demand for our next-generation solutions.' ^[1]

Where the revenue came from

Automotive, the largest market, brought in $2.07 billion, 13 percent more than a year earlier, mainly from processors and mixed-signal chips, the quarterly report said. NXP said BMW Group will use its ultra-wideband ranging and radar chips across its fleet, starting with selected 2026 vehicle programs. ^{[1, 2, 3]}

Industrial and IoT, the internet of things, was $802 million, up 39 percent. Communication infrastructure and other was $503 million, up 54 percent, the fastest of the four, as ANP reported. Mobile was the one market below a year earlier, at $411 million, down 4 percent. ^{[1, 2, 3, 4]}

Margins and cash

The gross margin, the share of revenue left after the cost of making the chips, was 57.8 percent as filed, against 56.3 percent a year earlier. The operating margin was 32.4 percent, against 28.1 percent, according to the release. ^{[1, 4]}

Net income attributable to shareholders was $884 million as filed, against $631 million a year earlier. ANP reported net profit of almost $1.1 billion, which matches the company's adjusted figure of $1.065 billion rather than the one under standard accounting rules. ^{[1, 3]}

Cash from operations was $1.26 billion; after $50 million of net capital spending, the company counted $1.21 billion of free cash flow. It paid $256 million in dividends and $103 million in share buybacks during the quarter. ^{[1, 4]}

What settles it next

The guidance covers the quarter that closes NXP's fiscal year on 31 December, with a gross margin as filed of 57.6 to 58.7 percent. NXP said the guidance 'consists of predictions only' and depends on risks many of which are beyond its control. Its next quarterly results will show the outcome. ^{[1, 2]}

Who it reaches

NXP Semiconductors (NXPI) is direct: the results and the guidance are its own. STMicroelectronics (STM) is adjacent: it bought NXP's MEMS sensors business, a sale that closed on Monday 2 February 2026 with $878 million paid in cash, NXP's quarterly report says. ^{[1, 2]}