AI Takeaway
NXP Semiconductors delivered a strong Q1 FY2026 with revenue of $3.18B (+12.2% YoY) and net income more than doubling to $1.12B (+129.0% YoY), driven by significant operating leverage and margin expansion.
Revenue
$3.18B
++12.20% YoY
EPS (Basic)
$4.44
++130.05% YoY
Gross Margin
56.2%
++1.18% YoY
Operating Income
$1.5B
++108.16% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 12.2% YoY to $3.18B in Q1 FY2026 from $2.84B in the prior-year period, reflecting broad-based demand recovery and improved product mix in NXP's semiconductor portfolio.
Source: Source: 10-Q Income Statement
Operating income surged 108.2% YoY to $1.51B, with operating margin expanding approximately 21.8 percentage points to 47.3%, indicating substantial operating leverage as revenue scaled faster than operating expenses.
Source: Source: 10-Q Income Statement
Gross margin improved to 56.2% from 55.0% in the prior-year quarter, reflecting favorable product mix and cost efficiencies, with cost of revenue growing at a slower pace (9.3%) than revenue (12.2%).
Source: Source: 10-Q Income Statement
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Upgrade to unlockNXP operates in the highly cyclical semiconductor industry where demand can shift rapidly. While Q1 FY2026 showed strong recovery, any renewed inventory buildup at customers—particularly in automotive and industrial end markets—could pressure revenue and margins in subsequent quarters.
Source: Source: 10-Q Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $3.05 versus the $3.01 analyst consensus — a +1.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.18B | $2.83B | +12.20% |
Cost of Revenue | $1.39B | $1.27B | +9.25% |
Gross Profit | $1.79B | $1.56B | +14.62% |
Operating Income | $1.5B | $723M | +108.16% |
Net Income | $1.12B | $490M | +128.98% |
EPS (Basic) | $4.44 | $1.93 | +130.05% |
EPS (Diluted) | $4.43 | $1.92 | +130.73% |
R&D Expense | $588M | $547M | +7.50% |
SG&A Expense | $284M | $281M | +1.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $27.11B | $25.18B | +7.68% |
Current Assets | $8.15B | $8.03B | +1.58% |
Total Liabilities | $15.84B | $15.5B | +2.17% |
Current Liabilities | $3.64B | $3.85B | -5.48% |
Stockholders' Equity | $10.93B | $9.32B | +17.22% |
Cash & Equivalents | $3.71B | $3.99B | -7.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $793M | $565M | +40.35% |
Investing Cash Flow | $508M | $-216M | +335.19% |
Financing Cash Flow | $-856M | $345M | -348.12% |
Share Buybacks | $102M | $303M | -66.34% |
D&A | $179M | $209M | -14.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 56.2% | 55.0% | +1.18% |
Operating Margin | 47.3% | 25.5% | +21.81% |
Net Margin | 35.3% | — | — |
ROE | 10.3% | — | — |
ROA | 4.1% | — | — |
Current Ratio | $2.241 | — | — |
Debt to Equity | $1.45 | — | — |
Other companies in Semiconductors
NXP Semiconductors reported Q1 FY2026 diluted EPS of $4.43, up 130.7% YoY from $1.92, and revenue of $3.18B, up 12.2% YoY. While specific analyst consensus estimates are not included in the filing, the dramatic YoY improvement across all key metrics signals a very strong quarter.
The standout takeaway from NXPI's Q1 FY2026 results is the massive operating leverage: operating income more than doubled (+108.2% YoY) to $1.51B while revenue grew 12.2%, pushing operating margin to 47.3% from 25.5%. Net income also surged 129% to $1.12B, reflecting broad-based profitability improvement.
NXP's revenue grew 12.2% YoY to $3.18B in Q1 FY2026, up from $2.84B in Q1 of the prior year. This growth was accompanied by gross margin expansion to 56.2%, suggesting the revenue increase was driven by higher-value products or improved pricing rather than volume alone.
Key risks for NXP include semiconductor cyclicality and potential inventory corrections at automotive and industrial customers, elevated financial leverage with a debt-to-equity ratio of 1.45x, and geopolitical/export control risks given its global operations. A decline in cash and equivalents of 7.0% YoY to $3.71B also warrants monitoring.
NXP's financial health appears solid: it holds $3.71B in cash, has a current ratio of 2.24x indicating strong short-term liquidity, and generated $793M in operating cash flow in the quarter. However, total liabilities of $15.84B and a debt-to-equity ratio of 1.45x represent meaningful leverage that investors should monitor.