NXP opens the
books on Monday evening.

Q3 Guidance Revenue Op Margin

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NXP provided strong guidance for the third quarter, expecting 18% year-over-year revenue growth and a 36.9% operating margin.

"We expect revenue of $3.75 billion plus or minus $100 million, which is up 18% year-on-year and 7% sequentially. We expect non-GAAP gross margin of 58.5%, plus or minus 50 basis points which is up 150 basis points year-on-year and up 50 basis points sequentially, driven by the higher revenue and our manufacturing utilization. We expect operating expenses of $810 million, plus or minus $10 million. At the midpoint, this results in a non-GAAP operating margin of 36.9%."

- Bill Betz, CFO - Q2 FY26 Earnings Call - July 28, 2026

Automotive Segment Sdv Growth

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The Automotive segment grew 17% year-over-year, adjusted for the MEMS sensor business sale, with a strong focus on software-defined vehicle (SDV) platforms.

"Adjusted for the sale of the MEMS sensor business earlier this year, automotive growth was up 17% year-over-year. The company-specific growth drivers grew in the low 20% range year-on-year and represented 47% of the auto business. Growth was driven primarily by software-defined vehicle, electrification and connectivity."

- Rafael Sotomayor, President and CEO - Q2 FY26 Earnings Call - July 28, 2026

Revenue Growth Margin Expansion

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The company demonstrated strong revenue growth of 19% year-over-year and an operating margin of 35%.

"Second quarter revenue was $3.5 billion, up 19% year-over-year, non-GAAP operating margin of 35% and non-GAAP EPS of $3.61, all exceeding the midpoint of our guidance."

- Rafael Sotomayor, President and CEO - Q2 FY26 Earnings Call - July 28, 2026

Data Center Ai Control Plane

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NXP's data center revenue is expected to exceed $500 million in 2026, up from approximately $200 million in 2025, positioning itself in the control plane of AI infrastructure.

"To recap, 2025, revenue was approximately $200 million, and we expect to exceed $500 million in 2026. Our position is squarely in the control plane of AI infrastructure, the same domain where NXP has built deep expertise across vehicles and factories for decades, now operating at hyperscale infrastructure specifically in 2 franchises."

- Rafael Sotomayor, President and CEO - Q2 FY26 Earnings Call - July 28, 2026

Physical Ai Edge Differentiation

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The company emphasizes AI moving from the cloud to the physical world in vehicles, factories, and robots, offering a broad and differentiated processor platform for edge AI.

"AI is moving from the cloud to the physical world into vehicles, factories and robots. It is moving directly into the markets where NXP already has leadership positions. Intelligence deployed at the edge demands real-time performance, ultra-low power and design in safety and security. True physical intelligence also requires distributing AI workloads across multiple layers of the system, an architecture we call the Neural Axis, which is the foundation for deterministic and safe operation of physical AI. These are capabilities, again, NXP has spent decades building. Our differentiated position rests in 3 areas: First, NXP offers the industry's broadest and most differentiated edge AI compute platform."

- Rafael Sotomayor, President and CEO - Q2 FY26 Earnings Call - July 28, 2026