--- title: "Surge of Over 15%! NXP Semiconductors Q1 Revenue Beats Expectations with 12% Growth, Q2 Guidance Raised | Earnings Insight" type: "News" locale: "en" url: "https://longbridge.com/en/news/284456607.md" description: "The company's first-quarter revenue reached $3.181 billion, a 12% year-over-year increase, surpassing analyst expectations of $3.15 billion. All end markets saw comprehensive growth, with the Industrial and IoT segment leading at 24%. NXP expects Q2 revenue to range between $3.35 billion and $3.55 billion, with a median year-over-year growth rate of approximately 18%, also exceeding analyst expectations of $3.27 billion. Following the announcement, NXP shares surged 15% in after-hours trading" datetime: "2026-04-28T22:12:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284456607.md) - [en](https://longbridge.com/en/news/284456607.md) - [zh-HK](https://longbridge.com/zh-HK/news/284456607.md) --- # Surge of Over 15%! NXP Semiconductors Q1 Revenue Beats Expectations with 12% Growth, Q2 Guidance Raised | Earnings Insight NXP Semiconductors (NPX) announced better-than-expected results for the first quarter of 2026, with revenue growing 12% year-over-year. All end markets showed a comprehensive recovery, and the company provided second-quarter guidance that exceeded year-ago levels, indicating that the momentum of demand recovery is accelerating. **The company's first-quarter revenue was $3.181 billion, a 12% year-over-year increase, beating analyst expectations of $3.15 billion.** Non-GAAP diluted earnings per share (EPS) were $3.05, up 16% year-over-year. Driven by a one-time gain of $627 million from the sale of its MEMS sensor business, GAAP diluted EPS reached $4.43, a significant jump from $1.92 in the same period last year. Rafael Sotomayor, President and CEO of the company, stated that the growth reflects continued investment in a differentiated product portfolio and increased customer adoption, adding that "this momentum is expected to accelerate further throughout the remainder of 2026." **Looking ahead to the second quarter, NXP expects revenue to range between $3.35 billion and $3.55 billion, with a midpoint of $3.45 billion, representing a median year-over-year growth rate of approximately 18% and a median quarter-over-quarter growth rate of about 8%. Analysts had expected $3.27 billion.** The non-GAAP diluted EPS guidance ranges from $3.29 to $3.72, with a midpoint of $3.50, significantly higher than the $3.05 recorded in the first quarter. Following the announcement, NXP shares surged 15% in after-hours trading. ## Comprehensive Growth Across All End Markets, Led by Industrial and IoT All business segments achieved year-over-year growth in the first quarter. The Automotive segment remained the largest source of revenue, recording $1.782 billion, a 6% year-over-year increase; **the Industrial and IoT segment showed the most prominent growth, reaching $628 million, a substantial 24% year-over-year increase;** the Mobile segment recorded $391 million, up 16% year-over-year; and Communication Infrastructure & Other recorded $380 million, up 21% year-over-year. On a quarter-over-quarter basis, various segments experienced declines of varying degrees due to seasonal factors. The Mobile segment decreased by 19%, and the Automotive segment saw a slight decline of 5%, while the Communication Infrastructure & Other segment bucked the trend with a 14% quarter-over-quarter increase. Regarding channel inventory, the weeks of supply at the end of the first quarter rose to 11 weeks from 10 weeks at the end of the previous quarter, and also increased from 9 weeks year-over-year, an indicator that requires continued monitoring. ## MEMS Sale Boosts Book Value, Focus on Automotive Digitalization and Edge AI On February 2, NXP completed the previously disclosed sale of its MEMS sensor business, receiving cash proceeds of $878 million and recording a one-time gain of $627 million, which was included in other income (expenses). This directly boosted the GAAP operating margin for the quarter to 47.3%, far higher than the 25.5% in the same period last year. **After divesting this non-core business, NXP will further focus its resources on strategic directions such as automotive digitalization and edge AI.** In the first quarter, the company launched the S32N7 super-integrated processor series, aimed at driving core functions of automotive digitalization; released the eIQ Agentic AI framework to enhance secure real-time edge AI capabilities; and collaborated with NVIDIA to release robotics solutions, as well as partnering with GE HealthCare in the field of edge AI. ## Strong Free Cash Flow, Optimistic Q2 Guidance Operating cash flow in the first quarter was $793 million, with net capital expenditures of $79 million, resulting in non-GAAP free cash flow of $714 million. This accounted for 22.4% of revenue, a significant improvement from $427 million in the same period last year. Total capital returns for the quarter amounted to $358 million, representing 50.1% of non-GAAP free cash flow, in line with the company's established targets. This included $102 million in stock repurchases and $256 million in cash dividends. The company also disclosed that between the end of the first quarter and April 24, it executed an additional $32 million in stock repurchases through its 10b5-1 plan. On January 5, NXP repaid $500 million in principal of its 5.35% senior unsecured notes in cash. The net financial leverage ratio at the end of the quarter was 1.7x, lower than the 1.9x at the end of the previous quarter. **NXP's non-GAAP gross margin guidance for the second quarter ranges from 57.5% to 58.5%, and the non-GAAP operating margin guidance ranges from 33.8% to 35.6%, both higher than the first-quarter levels,** indicating management's confidence in continued margin expansion. ### Related Stocks - [NXPI.US](https://longbridge.com/en/quote/NXPI.US.md) - [SNSR.US](https://longbridge.com/en/quote/SNSR.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [NXTG.US](https://longbridge.com/en/quote/NXTG.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GEHC.US](https://longbridge.com/en/quote/GEHC.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [NXP Semiconductors (NXPI) Q1 Earnings: What To Expect](https://longbridge.com/en/news/284146356.md) - [NXP’s Growth Story Reignited: Buchalter Reiterates Buy, Lifts Price Target from $250 to $310 on Strengthening Demand and Structural Growth Drivers](https://longbridge.com/en/news/284481942.md) - [BUZZ-Street View: AI demand boosts Intel, but capacity limits loom](https://longbridge.com/en/news/283982891.md) - [NXP Semiconductors Redeems $750 Million of 2026 Senior Notes](https://longbridge.com/en/news/283401779.md) - [Trustpoint Xposure Launches Industry's First AEO-Certified PR Program Guaranteeing Brand Placement Inside AI-Generated Answers](https://longbridge.com/en/news/284461177.md)