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A Dutch semiconductor company, NXP makes the microcontrollers, processors, and connectivity chips that power cars, factories, and everyday gadgets — its Arm-based processors and S32 automotive platform sit inside vehicles worldwide. Born in 2006 when the Dutch electronics giant Philips spun off its chip division, it grew into one of the world's largest chipmakers through its 2015 merger with Freescale, whose roots trace back to Motorola. Its name is short for "Next eXPerience," a nod to the consumer experiences its silicon enables.
Q2 2026 revenue rose 19.5% to $3.5B with gross margin up to 57.3% as all end markets grew
growth returned across every end market this quarter. Revenue rose 19.5% to $3,496M and expanded to 57.3% from 53.4% on higher volumes and lower manufacturing costs, while of $1,071M fell sequentially from $1,505M as that prior quarter included a one-off $627M . The underlying business is growing again, but total debt of $10,976M remains after a $750M repayment.
Key takeaways
grew 19.5% to $3,496M, driven by double-digit gains in Automotive (+12.1%), Industrial & IoT (+38.3%), and Communication Infrastructure & Other (+41.3%) after those markets declined or were flat through 2025.
expanded to 57.3% from 53.4% a year ago, primarily due to higher sales volumes and lower manufacturing costs from improved factory utilization.
rose to $1,071M from $687M a year ago but fell from $1,505M in Q1 2026, as the prior quarter included a $627M one-off non-cash gain on the business sale.
Section summaries
Management's Discussion and Analysis
NXP Q2 2026 revenue rose 19.5% YoY to $3.5B with broad end-market growth and gross margin expansion to 57.3%.
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grew 19.5% to $3,496M, driven by double-digit gains in Automotive (+12.1%), Industrial & IoT (+38.3%), and Communication Infrastructure & Other (+41.3%).
Total debt decreased to $10,976M after repaying $750M of 3.875% senior notes, and improved to $7,754M from $8,955M at year-end 2025.
was $791M in Q2 and the company returned $360M to shareholders via dividends and buybacks; was $1,653M for the first half.
Operating expenses increased to $926M with R&D up 5.4% on higher variable compensation and acquisition-related costs, partially offset by cost-cutting initiatives.
What changed
Communication Infrastructure & Other reversed from a 26.9% Q2 2025 decline to a 41.3% Q2 2026 increase, settling the flagged watch on whether that drop would widen or stabilize.
Q2 2026 of 57.3% reversed the Q2 2025 drop to 53.4%, answering the flagged watch on whether price and mix headwinds would persist.
excluding the Q1 2026 was $1,071M in Q2, down sequentially from the $627M-lifted $1,505M but up from $687M a year ago, as flagged to watch.
Total debt fell to $10,976M from $11,724M in Q1 2026 after the $750M note repayment, continuing the flagged watch on debt trajectory after the $1.5B Q3 2025 notes issuance.
Risk factors showed no material change from the FY 2025 10-K, so no new company-specific risk was added this quarter.
What to watch
Q3 2026 by end market to see if the Communication Infrastructure & Other +41.3% and Industrial & IoT +38.3% gains hold or fade.
Q3 2026 excluding any one-off items after the sequential drop to $1,071M from the divestiture-lifted $1,505M.
Total debt trajectory after the $750M repayment to $10,976M and any further 2026 maturity redemptions.
Integration costs from 2025 acquisitions (, , ) on R&D and SG&A in coming quarters.
expanded to 57.3% from 53.4% a year ago, primarily due to higher sales volumes and lower manufacturing costs from improved factory utilization.
rose to $1,071M from $687M , but fell sequentially from $1,505M due to the prior quarter's $627M gain on the MEMS Sensors business sale.
Operating expenses increased to $926M, with R&D up 5.4% on higher variable compensation and acquisition-related costs, partially offset by cost-cutting initiatives.
was $1,653M for the first half; was $791M in Q2, and the company returned $360M to shareholders via dividends and buybacks.
Total debt decreased to $10,976M after repaying $750M of 3.875% senior notes, and improved to $7,754M from $8,955M at year-end 2025.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the Company’s market risk during the first six months of 2026. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosure…
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There have been no material changes to the Company’s market risk during the first six months of 2026. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2025.