Revenue Growth Across the Business
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: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
$4.43
+130.73% YoY
Gross Margin
56.2%
+1.2 pts YoY
Operating Income
$1.5B
+108.16% YoY
Source: SEC XBRL
NXP Semiconductors N.V (NXPI) reported Q1 FY2026 revenue of $3.18B, up 12.2% year over year. Operating margin was 47.3%, up 21.8 points from 25.5% a year earlier. Operating cash flow was $793M, up 40.4% year over year. NXPI's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.61 | 3.55 | Beat +1.6% |
| Mar 2026This filing | 3.05 | 3.01 | Beat +1.4% |
| Dec 2025 | 3.35 | 3.34 | Beat +0.4% |
| Sep 2025 | 3.11 | 3.17 | Miss -2.0% |
Adjusted (non-GAAP) EPS of $3.05 versus the $3.01 analyst consensus — a +1.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $4.43.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement
R&D expense increased 7.5% YoY to $588M, representing approximately 18.5% of revenue, underscoring NXP's continued commitment to innovation in automotive, industrial, and IoT semiconductor solutions.
Source: 10-Q Income Statement
Operating cash flow rose 40.4% YoY to $793M, supported by higher net income, while investing cash flow turned positive at $508M compared to an outflow of $216M in the prior year, suggesting asset monetization or reduced capital expenditures.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
NXP 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: 10-Q Financial Data
NXP's debt-to-equity ratio stands at approximately 1.45x, indicating meaningful financial leverage. With total liabilities of $15.84B against stockholders' equity of $10.93B, rising interest rates or a revenue downturn could strain debt servicing capacity.
Source: 10-Q Balance Sheet
Cash and equivalents declined 7.0% YoY to $3.71B, while financing cash outflows were $856M versus an inflow of $345M in the prior year. Balancing shareholder returns (buybacks, dividends) with investment needs and debt obligations remains a key challenge.
Source: 10-Q Cash Flow Statement
As a global semiconductor company with significant exposure to China and other international markets, NXP faces risks from export restrictions, trade tensions, and geopolitical conflicts that could disrupt supply chains or limit market access.
Source: 10-Q Risk Context
NXP derives a significant portion of revenue from the automotive semiconductor market. Any slowdown in global vehicle production, EV adoption headwinds, or loss of key automotive customers could disproportionately impact revenue and profitability.
Source: 10-Q Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.18 $B | 2.84 $B | +12.20% |
Cost of Revenue $B | 1.39 $B | 1.28 $B | +9.25% |
Gross Profit $B | 1.79 $B | 1.56 $B | +14.62% |
Operating Income $B | 1.51 $B | 0.72 $B | +108.16% |
Net Income $B | 1.12 $B | 0.49 $B | +128.98% |
EPS (Basic) $ | 4.44 $ | 1.93 $ | +130.05% |
EPS (Diluted) $ | 4.43 $ | 1.92 $ | +130.73% |
R&D Expense $M | 588.00 $M | 547.00 $M | +7.50% |
SG&A Expense $M | 284.00 $M | 281.00 $M | +1.07% |
Answers draw on this SEC filing and the data on this page
NXPI delivered strong 2026-Q2 operating growth, with revenue up 19.5% year over year to $3.496B, GAAP net income up to $782M, and GAAP gross margin expanding to 57.3%, while maintaining substantial liquidity and reducing debt. Source: 10-Q Item 2 MD&A, pp.21-29
NXP Semiconductors reported a challenging FY2025 with revenue declining 2.7% to $12.27B and net income falling 19.5% to $2.02B, as cost pressures compressed margins despite resilient operating cash flow of $2.82B.
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