Broad-Based Growth Lifts NXP Q2 Revenue 19.5%; MEMS Sale Closes
NXPI sits 32% above its 52-week low of $183.
Summary
NXP Semiconductors posted Q2 2026 revenue of $3.5 billion, a 19.5% year-over-year increase, alongside notable margin expansion and cash generation. The quarter included a $627 million gain from the completed sale of its MEMS Sensors business.
Key Events · Earnings and Guidance · NXPI
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Revenue Surges 19.5%
Q2 revenue reached $3,496 million, up from $2,926 million a year ago, with growth in all end markets: Automotive +12.1%, Industrial & IoT +38.3%, Mobile +6.0%, and Comm Infra & Other +41.3%.
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Margins Expand Significantly
GAAP gross margin improved to 57.3% from 53.4%, and non-GAAP operating margin rose to 35.1% from 32.0%, driven by higher volumes and manufacturing efficiencies.
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MEMS Sensors Sale Completed
The divestiture of the MEMS Sensors business closed on February 2, 2026, generating $878 million in cash and a $627 million gain recorded in other income. An additional $50 million earn-out is possible.
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Strong Cash Generation and Capital Returns
Operating cash flow was $860 million, with free cash flow of $791 million. NXP returned $360 million to shareholders in Q2 via $256 million in dividends and $104 million in share repurchases.
Analysis · NXPI · Manufacturing
A strong quarter saw revenue climb 19.5% year-over-year to $3.5 billion, fueled by double-digit gains across every end market. Gross margins expanded to 57.3% on a GAAP basis, while operating cash flow reached $860 million. The period also marked the completion of the MEMS Sensors business sale, which added a $627 million gain, and the company continued returning capital through buybacks and dividends. These results underscore NXP's recovery momentum, though the MEMS gain flatters reported earnings. A new PSU plan sets ambitious 2027 targets, signaling management's confidence in sustained growth.
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In the 30 days to Oct 5, 2026, 29.2% of the 1496 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NXPI was trading at $241.04 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $65.4B. The 52-week trading range was $183.00 to $339.95. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.