NXP Semiconductors N.V.

NXP is a semiconductor designer and manufacturer (operating a hybrid model of owned fabs and third-party foundries) primarily serving automotive and industrial & IOT (approx 75% of revenue with 58% being from automotive) but also serving mobile and communications infrastructure markets. Although a Netherlands-based company, it operates in more than 30 countries, trades on the NASDAQ and reports in $U.S., delivered more than $12 billion in revenue in FY25 and sports a market cap of more than $50 billion.

As a testament to their quality, their FY25 automotive revenue was only 5% below their 2023 high while many peers saw significant declines and their adjusted EPS declined by only 16% while many peers saw declines of 30% or much more.

Feb 2nd 2026 Divested Automotive MEMS business to ST Micro for up to $950m (Revs 300m in FY24)

 

Ests:     2Q26     3Q26     FY26.    FY27

Revs     3.46b     3.7b     14.1b     15.7

EPS          3.52     4.03     14.87    17.90

 

P=259.12, Div=4.06, yield=1.6%, D/C=39.7%, TTM EPS=13.12, P/E=20X, FY26 P/E=17X

2Q26 3.61 vs 2.72 +33%, est 3.52 up from 3.21

  • Jul 28, 2026, P=259.12, TTM EPS=13.12, P/E=20X, FY26 P/E=17X

  • Revs +19.5% to 3.5bn (est 3.46), GM 58% vs 56.5%, OM 35.1% vs 32%

  • Auto +12% to 1.94bn (+17% ex MEMS divestiture), Indu +38.3% to 755m, Mobile +6% to 351m, Comms +41.3% to 452m

  • 3Q Guidance: Revs +15-21% to 3.65-3.85bn (est 3.7bn, 4Q est 3.78bn), EPS +25-39% to 3.89-4.32 (est 4.03)

  • Guidance factors auto +LDD (high teens ex divestiture), +MSD q/q, Indu +high 30s, +MSD q/q, Mobile -MSD, +mid-teens q/q, Comms +50%, +HSD q/q

  • “AI is moving from the cloud into the physical world - into vehicles, factories, and robots — and it lands directly in the markets where NXP has leadership positions. NXP's portfolio of processing, connectivity, and security solutions, positions us to enable next-generation edge intelligence for our customers”

  • Hitting 3Q EPS midpoint would represent full recovery of the down cycle, well ahead of most analog peers.  

1Q26 3.05 vs 2.64 +15.5%, (est 2.98)

  • Apr 28, 2026, P=229.65, TTM EPS=12.15, P/E=18.7X, FY26 P/E=16.5X

  • Revs +12.2% to 3.18bn (est 3.15), GM 57.1% vs 56.1%, OM 33.1% vs 31.9%

  • Automotive +6.5% to 1.78bn (+10% divestiture of auto MEMS), Indu +23.6% to 828m, Mobil +15.7% to 391m, Comms +20.6% to 380m

  • 2Q Guide +14-21% to 3.35-3.55bn (est 3.3bn), EPS +21-36% to 3.29-3.72 (est 3.21)

  • “remainder of 2026 is set up to be stronger than we anticipated just 90 days ago”, puts 1H +15% y/y but +18% ex MEMS divestiture (FY26 est +10.3%)

  • Confident in hitting FY27 targets implies double digit rev growth in FY26 and FY27, GM toward 60% plus, continued OpEx discipline, design wins going into prodn driving confidence

  • FY25 Data center >200m in both Indu and Comms infra, they expect to be >500m this year, systems cooling, power supply, board management and control,..

4Q25 3.35 vs 3.18 +5.3%, FY25 EPS 11.81 vs 13.09

  1. Feb 2, 2026, P=229.89, TTM EPS=11.81, P/E=19X

  2. Revs +7.2% to 3.34bn, GM 57.4% vs 57.5%, OM 34.6% vs 34.2%

  3. Auto +4.8% to 1.88bn, Indu +24% to 640m, Mobil +22.5% to 485m, Comms & other -18% to 334m

  4. 1Q Guidance: Revs +8% to +15% to 3.05-3.25bn, EPS +2% to +17% to 2.77-3.17