NXP Q3 Revenue Rises 19%, Shares Fall 8% on Q4 Outlook

According to NXP Semiconductors’ financial results released on October 27, 2026, the company reported revenue of $3.786 billion for the third quarter ended September 27, up 19% year over year and above market expectations. Adjusted earnings per share reached $4.20, compared with $3.11 a year earlier, driven by stronger demand for automotive semiconductors, industrial applications, and data center technologies. However, its fourth-quarter revenue guidance fell slightly short of analyst expectations, sending its shares down nearly 8% in after-hours trading.

Automotive and Industrial IoT Drive Growth

NXP’s automotive revenue reached a record $2.07 billion, up 13% year over year. Growth was supported by increasing semiconductor content per vehicle, particularly as software-defined vehicles (SDVs) gain traction. The company said its annualized SDV revenue has exceeded $1.5 billion, putting it on track toward a $2 billion target for 2027.

Industrial and IoT revenue increased 39% to $802 million, supported by demand from data centers, factory automation, and healthcare. Communications infrastructure and other revenue rose 54% to $503 million, while mobile revenue declined 4% to $411 million.

Data centers are emerging as another growth driver. NXP raised its full-year data center revenue outlook to more than $500 million and expects the business to exceed $1 billion within several years.

Q4 Outlook and Long-Term Financial Targets

For the fourth quarter, NXP expects revenue of $3.75 billion to $3.95 billion, with a midpoint of $3.85 billion, slightly below analysts’ expectations of $3.86 billion. Adjusted earnings per share are projected at $4.14 to $4.58. The company expects revenue to increase 15% year over year and 2% sequentially.

NXP also authorized an additional $5 billion in share repurchases, bringing its total authorization to approximately $6.3 billion. For 2027, management is targeting double-digit revenue growth and a gross margin of 60%, supported by improved manufacturing utilization, a stronger product mix, and efficiency gains from 300mm manufacturing joint ventures.

Expanding Beyond Automotive Semiconductors

NXP is extending its technologies into physical AI and robotics. During the earnings call, the company disclosed its first S32K5 design win for a humanoid robotics application with a leading U.S. technology company. The development highlights potential opportunities for its automotive computing, sensing, networking, and security technologies in emerging intelligent systems.

Despite strong third-quarter results, softer-than-expected revenue guidance and signs of moderating automotive demand remain key uncertainties. Investors will be watching whether SDV adoption and data center growth can support NXP’s 2027 targets. The company plans to hold an investor day in Boston on March 3, 2027, to provide further updates on its strategy and long-term financial outlook.