NXP (NXPI) Q3 2026 Earnings Call: Record Revenue, SDV Growth and $5 Billion Buyback
Source Tradingkey
Key Takeaways
- NXP reported record Q3 2026 revenue of $3.79 billion, up 19% year over year and 8% sequentially. Excluding the MEMS Sensor business, revenue increased 22% year over year.
- Non-GAAP operating margin reached 37.1%, up 330 basis points year over year, while non-GAAP EPS rose 35% to $4.20.
- Automotive revenue exceeded $2 billion for the first time and increased 17% year over year excluding sensors. Management said software-defined vehicle, or SDV, revenue was running above a $1.5 billion annualized rate.
- Industrial and IoT revenue increased 39% to $802 million, led by data centers, factory automation and healthcare. Communication Infrastructure and Other revenue rose 54% to $503 million.
- NXP guided Q4 revenue to $3.85 billion at the midpoint and non-GAAP EPS to $4.36. Management also expects double-digit revenue growth and gross margin expansion to 60% during 2027.
- The board authorized an additional $5 billion for share repurchases, lifting total authorization to approximately $6.3 billion. NXP plans to accelerate buybacks beginning in Q4 and through 2027.
Core Financial Data
| Metric | Q3 2026 | Change / Commentary |
|---|---|---|
| Revenue | $3.79 billion | Up 19% YoY and 8% QoQ; up 22% YoY excluding MEMS sensors |
| Non-GAAP gross margin | 58.6% | Up 160 basis points YoY |
| Non-GAAP operating expenses | $810 million | 21.4% of revenue |
| Non-GAAP operating margin | 37.1% | Up 330 basis points YoY |
| Non-GAAP EPS | $4.20 | Up 35% YoY |
| Operating cash flow | $1.26 billion | Stronger cash generation supported investment and capital returns |
| Free cash flow | $1.21 billion | Approximately 32% of revenue |
| Cash | $3.94 billion | Quarter-end balance |
| Debt | $10.98 billion | Net leverage ratio of 1.3x |
| Inventory days | 148 days | Down from 156 days in Q2; includes about 13 days of prebuilt inventory |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Big tech earnings arrive this week, with Microsoft, Alphabet, and Amazon all releasing quarterly reports.In their latest quarters, Google Cloud grew 82%, Azure 42%, and Amazon Web Services (AWS) 37%,
Fed decision, US inflation and Middle East tensions take centre stage. Explore the US dollar, gold and AUD/USD outlook for Australian traders.
Nasdaq rises 0.82% as Anthropic files for IPO, gold reclaims $4,000 and oil falls. Explore Australia's market outlook ahead of the Fed decision.
South Korea’s KOSPI rose 4.53% from Monday’s close to 5,717.30 on Tuesday morning. The jump made the Korea Exchange pause program buying for five minutes, its second brake in six days.The first brake,
Bitcoin is fighting to hold $80,000 after three consecutive weeks of losses. The broader crypto market remains under pressure as weak investor confidence and volatility in global stocks weigh on price
