NXP Profit Rises as Third Quarter Revenue Climbs 19 Percent and Board Approves $5 Billion Buyback

NXP Semiconductors reported third quarter revenue of $3.79 billion on Tuesday, up 19 percent from a year earlier, as automotive and industrial sales rose and profit beat expectations. The results cover the quarter ended September 27, 2026.

Net income was $899 million, up from $646 million a year earlier. GAAP diluted earnings were $3.48 per share, up from $2.48, and adjusted earnings were $4.20 per share, above the FactSet consensus of $4.12, the Wall Street Journal reported from the company release.

Growth by segment

Automotive remained the largest business. Automotive revenue was $2.07 billion, up 13 percent. Industrial and IoT revenue was $802 million, up 39 percent. Communication infrastructure and other revenue was $503 million, up 54 percent. Mobile revenue was $411 million, down 4 percent.

President and chief executive Rafael Sotomayor pointed to automotive and industrial work and to data center demand. "NXP delivered third-quarter revenue of $3.8 billion, up 19 percent year-on-year and 8 percent sequentially. Our performance was driven by accelerating contributions from our company-specific growth drivers in automotive and industrial as well as continued momentum in data center infrastructure," Sotomayor said in the release.

Margins and cash flow

Non-GAAP gross margin was 58.6 percent and non-GAAP operating margin was 37.1 percent. Cash flow from operations was $1.26 billion. Non-GAAP free cash flow was $1.21 billion after $50 million in net capital expenditures.

NXP returned $359 million to shareholders in the quarter, made up of $256 million in dividends and $103 million in share repurchases.

New buyback and fourth quarter guidance

In October, after the quarter ended, the board authorised a new $5 billion share repurchase program. The new program sits in addition to $1.3 billion remaining under the prior authorisation.

For the fourth quarter, NXP guided revenue of $3.75 billion to $3.95 billion and GAAP earnings of $3.36 to $3.79 per share. StockStory put the revenue guidance midpoint at $3.85 billion and the adjusted earnings guidance midpoint at $4.36 per share.

The report shows a chip company growing again in its core markets after a weaker period for automotive suppliers. The strongest gains came outside automotive, in industrial and IoT and in communication infrastructure, while mobile was the only segment to fall.

For investors, the combination in the release was higher revenue, higher profit, a larger return to shareholders in the quarter, and a new buyback that adds to the amount already authorised.