NXP Beats Q3 Estimates, but a Soft Q4 Revenue Guide Sends Shares Lower

NXPI reported third-quarter 2026 revenue of $3.79 billion, up 19.3% year over year and 8% sequentially, with non-GAAP EPS of $4.20 against consensus of roughly $4.12 to $4.14. GAAP diluted EPS was $3.48, versus $2.48 a year earlier. Even so, shares tumbled about 9% to $232.08 in the immediate after-hours reaction.

The reason was the outlook. NXP guided fourth-quarter revenue to $3,750 million to $3,950 million, a $3.85 billion midpoint that sits below the $3.87 billion consensus cited by Yahoo Finance, while the $4.36 midpoint for non-GAAP EPS was roughly in line with expectations. The company's release also guided non-GAAP operating margin to 36.6% to 38.3%, so the market reaction appears to hinge on top-line momentum rather than profitability.

By end market, Automotive was the largest at $2,070 million, up 13% year over year. Industrial & IoT reached $802 million, up 38.5% year over year, and Communication Infrastructure & Other reached $503 million, up 53.8%, while Mobile revenue slipped 4.4%. Mobile still rose 17% from the prior quarter to $411 million. On a non-GAAP basis, gross margin was 58.6% and operating margin 37.1%. Non-GAAP free cash flow was $1,206 million, and the board added a $5 billion buyback authorization on top of $1.3 billion remaining.

Investors could watch whether Q4 revenue lands at or above the $3.85 billion midpoint, whether automotive and data center related demand keep accelerating, and whether Mobile's sequential rebound holds.