NXP beats Q3 estimates and approves $5B buyback, but shares slide on weak forecast
NXP Semiconductors topped third-quarter financial estimates and announced a new $5 billion share repurchase authorization, but its stock dropped more than 7% after hours following a weaker-than-expected revenue outlook.
NXP Semiconductors reported third-quarter 2026 revenue of $3.79 billion, up 19% year over year, beating market expectations of $3.76 billion. Adjusted earnings per share reached $4.20, up 35% from the prior year and ahead of the $4.09 consensus. Automotive revenue rose 13% to $2.1 billion, Industrial and IoT jumped 39% to $802 million, and Communication Infrastructure climbed 54% to $503 million, offset slightly by a 4% decline in Mobile to $411 million. Non-GAAP gross margin stood at 58.6%, and free cash flow totaled $1.2 billion.[1][2]
The chipmaker authorized a new $5 billion share repurchase program after returning $359 million to investors in the third quarter through $256 million in dividends and $103 million in buybacks. NXP also highlighted several operational milestones, including BMW deploying its Trimension ultra-wideband ranging and radar solutions across its fleet, the groundbreaking of an assembly and test facility expansion in Malaysia, and the opening of VSMC's first 300mm wafer fabrication facility in Singapore.[2]
Despite the earnings beat, NXP shares dropped 7.46% in extended trading, falling from a session close of $253.50 to $234.59. Bloomberg reported that the late-session retreat was fueled by a weaker-than-anticipated fourth-quarter revenue projection, stirring investor concerns that a demand recovery may be stalling. NXP guided fourth-quarter revenue in a range of $3.75 billion to $3.95 billion, with the midpoint falling below the $3.86 billion analyst consensus, alongside projected adjusted EPS between $4.14 and $4.58.[1][2][3][4]
Key facts
- NXP generated Q3 revenue of $3.79 billion (up 19% YoY) against a $3.76 billion estimate.
- Q3 adjusted EPS came in at $4.20 (up 35% YoY), surpassing the $4.09 consensus expectation.
- The company approved a new $5 billion share repurchase authorization.
- NXP guided Q4 revenue to between $3.75 billion and $3.95 billion, compared to an analyst estimate of $3.86 billion.
- NXPI shares declined 7.46% in after-hours trading, falling from $253.50 to $234.59.
- Bloomberg reported that the post-earnings slide reflected market concerns that demand recovery is slowing.
- BMW will deploy NXP's Trimension UWB ranging and radar solutions across its fleet.
Sources · 4 sources
- TR
TrendSpider@TrendSpiderPost on X ·
$NXPI Q3 EARNINGS DOUBLE BEAT AND DUMPING Adj EPS: $4.20 vs $4.09 est ✅ Sales: $3.786B vs $3.760B est ✅ 🟥 -7.46% https://t.co/RSu0cTtZnR
Open source - WS
Wall St Engine@wallstenginePost on X ·
NXP SEMICONDUCTORS $NXPI Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $3.79B (Est. $3.76B) 🟢; +19% YoY 🔹 Adj. EPS: $4.20 (Est. $4.09) 🟢; +35% YoY 🔹 Non-GAAP Gross Margin: 58.6% 🔹 Free Cash Flow: $1.2B; 31.9% of revenue Q4 Guide: 🔹 Revenue: $3.75B-$3.95B (Est. $3.86B) 🟡 🔹 Adj. EPS: $4.14-$4.58 (Est. $4.32) 🟡 🔹 Gross Margin: 58.5%-59.5% Segment Net Revenue: 🔹 Automotive: $2.1B; +13% YoY 🔹 Industrial & IoT: $802M; +39% YoY 🔹 Mobile: $411M; -4% YoY 🔹 Comm. Infra. & Other: $503M; +54% YoY Other Q3 Metrics: 🔹 Operating Cash Flow: $1.3B 🔹 Net CapEx: $50M Capital Return: 🔹 Capital Return: $359M 🔹 Dividends Paid: $256M 🔹 Share Buybacks: $103M 🔹 New Buyback Authorization: $5B Announcements: 🔹 BMW Deployment: Trimension™ UWB ranging and radar solutions across its fleet 🔹 Malaysia: Assembly and test site expansion groundbreaking 🔹 Singapore: VSMC opened its first 300mm fab Comments: 🔸 “Strong profitability leading to free cash flow generation enables NXP to invest in innovative solutions and expand manufacturing capabilities that support our long-term growth objectives, while continuing to return capital to shareholders through our newly announced $5 billion share repurchase authorization.” 🔸 “Looking ahead, we see significant opportunities as software-defined vehicles drive increasing demand for our next-generation solutions, while data center infrastructure and Trusted Physical AI applications create new vectors for long-term growth.”
Open source - TE
TechmemeArticle ·
NXP reports Q3 revenue up 19% YoY to $3.79B, vs. $3.76B est., and forecasts Q4 revenue below estimates; NXPI drops 7%+ after hours (Christina Kyriasoglou/Bloomberg) Christina Kyriasoglou / Bloomberg : NXP reports Q3 revenue up 19% YoY to $3.79B, vs. $3.76B est., and forecasts Q4 revenue below estimates; NXPI drops 7%+ after hours — NXP Semiconductors NV, a maker of chips for auto and industrial customers, slid in late trading after delivering a weaker revenue forecast than anticipated …
Open source - BL
Bloomberg@businessPost on X ·
NXP, a maker of chips for auto and industrial customers, slid in late trading after delivering a weaker revenue forecast than anticipated, sparking fears that a recovery in demand is slowing https://t.co/7tHCfrc2tM
Open source