NXP Semiconductors Revenue Rises 19% to $3.5B Driven by Automotive, Industrial IoT, and AI

NXP Semiconductors reported its Q2 2026 revenue rose 19% to $3.5 billion, driven by growth in its automotive, industrial IoT, and communications infrastructure businesses. Non-GAAP EPS of $3.61 beat the $3.50 consensus. Bernstein raised its price target on the stock to $290 from $270 following the results, while maintaining a market-perform rating.

NXPI reported second-quarter fiscal 2026 revenue of $3.5 billion, up 19% year over year and 10% sequentially, topping Wall Street's $3.45 billion estimate. Non-GAAP EPS of $3.61 beat the $3.50 consensus, up 33% year over year, while GAAP diluted EPS rose 72% to $3.02.

Growth was broad-based across every end market. Automotive revenue climbed 12% to $1.94 billion, industrial and IoT jumped 38% to $755 million, communications infrastructure and other rose 41% to $452 million, and mobile grew 6% to $351 million. Management cited software-defined vehicles, industrial edge processing, and expanding AI-enabled platforms as drivers.

Profitability improved alongside the top line: non-GAAP gross margin reached 58.0% and operating margin hit 35.1%, both ahead of guidance midpoints. For the third quarter, NXP guided to revenue of $3.65 billion to $3.85 billion, implying 15% to 21% year-over-year growth, with adjusted EPS of $3.89 to $4.32.

Bernstein raised its price target to $290 from $270 while keeping a market-perform rating, citing improving valuation after the recent semiconductor selloff, though it flagged uncertain Chinese automotive demand and NXP's limited AI data-center exposure as risks. Even with the beat and raised guidance, shares slipped about 2.4% premarket on broader worries about AI infrastructure spending returns.

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