NXPI

NXP Semiconductors stock has delivered a 14.9% total return over the past 5 years, yet current valuation checks suggest the shares may still trade below a conservative view of intrinsic value. The Discounted Cash Flow (DCF) estimate and market multiple comparison both point to the stock pricing in a discount of around 10.1% to those fair value markers. A 14.9% return over 5 years points to long term value creation, while the current market price still sits below the intrinsic value estimate. For NXP Semiconductors, the key support for valuation can come from sustained cash generation on its existing product portfolio, while the main risk is any slowdown in end demand that would pressure margins and free cash flow. The broader checks lean cheap, with the company scoring highly on value screens and 5.0 out of 6 on the value scorecard. The issue now is whether that apparent discount in NXP Semiconductors shares offers enough margin of safety for investors who are focused on valuation first. Compare NXP Semiconductors with hand picked value ideas and see how its 10.1% DCF discount compares with 44 high quality undervalued stocks. The Discounted Cash Flow (DCF) approach used here looks at the cash NXP Semiconductors can generate for shareholders over time and discounts it back to today. The model starts from latest twelve month free cash flow of about $2.4b and assumes that cash generation grows from this base rather than shrinking. On that basis, the 2 Stage Free Cash Flow to Equity model points to an estimated intrinsic value of about $248.74 per share. Compared with the current share price, that intrinsic value implies NXP Semiconductors trades at roughly a 10.1% discount. The key question for you is whether the assumed path of growing free cash flow remains realistic given the company’s existing product portfolio and end markets. If those cash flows prove broadly in line with the model, the current gap between price and intrinsic value could be meaningful. On this discounted cash flow view, NXP Semiconductors stock appears undervalued by around 10%. Our Discounted Cash Flow (DCF) analysis suggests NXP Semiconductors is undervalued by 10.1%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NXP Semiconductors. The P/E ratio is a useful cross check for NXP Semiconductors because earnings remain a key focus for many investors in the semiconductor sector. On this measure, NXP Semiconductors trades at about 19.0x earnings, compared with an industry average P/E of roughly 46.0x and a broader peer average near 73.0x. That is a sizeable step down from both the typical semiconductor stock and the wider peer group. A more tailored fair P/E for NXP Semiconductors, which blends factors such as its industry, size and risk profile, comes out at about 30.8x. The current 19.0x multiple sits well below that level, which suggests the market is applying a discount even relative to this more customised benchmark rather than just the raw industry average. On the P/E multiple, NXP Semiconductors stock currently appears undervalued compared with both its sector and a more company specific fair value mark. See what the numbers say about this price — find out in our valuation breakdown. Narratives on Simply Wall St take the valuation puzzle around NXP Semiconductors and explain which assumptions on growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today’s price, and they sit on the Community page. Rather than relying on a single model output, each narrative lays out the key drivers behind its view so you can compare those assumptions with future results as they are reported. One of the top community narratives on NXP Semiconductors: 29% undervalued Read one of the top narratives on NXP Semiconductors Do you think there's more to the story for NXP Semiconductors? Head over to our Community to see what others are saying! For investors focused on valuation first, NXP Semiconductors screens as undervalued on both the Discounted Cash Flow (DCF) view and on earnings multiples, which is a rare level of agreement between methods. The key question is whether the company can keep converting its existing product positions into solid free cash flow while conditions in its end markets remain supportive enough to protect margins. If that holds, the current discount to intrinsic value and to a tailored P/E benchmark could remain attractive. The crux of the debate is whether the market is mispricing that cash flow resilience or correctly building in the risk of weaker demand. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NXPI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

EINDHOVEN, The Netherlands, Aug. 28, 2026 (GLOBE NEWSWIRE) -- As part of its ongoing capital return program, NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that its board of directors has approved the payment of an interim dividend. The actions are based on the continued and significant strength of the NXP capital structure, and the board’s confidence in the company’s ability to drive long-term growth and strong cash flow. The board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the third quarter of 2026. The interim dividend will be paid in cash on October 8, 2026, to shareholders of record as of September 16, 2026. Taxation – Cash Dividends Cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. If you are uncertain as to the tax treatment of any dividends, consult your tax advisor. About NXP SemiconductorsNXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com. Forward-looking StatementsThis document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; global trade disputes, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov. For further information, please contact: NXP-Corp

Marvell Technology (NASDAQ:MRVL), a data-center networking and custom AI semiconductor solutions provider, closed at $216.62, down 10.28%. The stock fell after the fiscal second-quarter results beat estimates, as investors focused on softer fiscal 2028 guidance and a lack of details on the Google deal. Trading volume reached 47.7M shares, coming in nearly 18% above its three-month average of 40.3M shares. Marvell Technology IPO'd in 2000 and has grown 1,430% since going public. S&P 500 (SNPINDEX:^GSPC) closed at 7,710, down 0.27%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,402, down 0.52%. Among semiconductor design for data infrastructure, networking, and custom AI chips peers, Broadcom (NASDAQ:AVGO) closed at $368.79, down 0.74%, and NXP Semiconductors (NASDAQ:NXPI) closed at $223.58, down 1.01%. Marvell delivered earnings that beat Wall Street's expectations, with sales and EPS rising 37% and 50%, respectively. However, analysts wanted more from the company's 2028 guidance, despite management raising 2027 revenue guidance to $12 billion and 2028 to $18 billion, compared to $9.5 billion over the last 12 months. After announcing a new deal with Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google business, many analysts were hoping for more potential upside in management's outlook for 2027 and 2028, which may have prompted today's decline. That said, Marvell is holding an Investor Day in October, where it may discuss in more detail how this Google deal will affect earnings and guidance. Ultimately, Marvell is priced for perfection at 53 times forward earnings -- even after today's decline -- and its earnings report was solid but not "perfect" enough to support its lofty valuation. Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marvell Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 28, 2026. Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Broadcom, Marvell Technology, and NXP Semiconductors. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 28: Marvell Slides 10% on Softer Fiscal 2028 Guidance and Google Deal Timing was originally published by The Motley Fool

It has been about a month since the last earnings report for NXP Semiconductors (NXPI). Shares have lost about 7.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for NXP Semiconductors N.V. before we dive into how investors and analysts have reacted as of late. NXP Semiconductors N.V. reported better-than-expected second-quarter 2026 results, driven by broad-based strength across its end markets, accelerating adoption of software-defined vehicles, industrial processing solutions and growing demand from AI data center infrastructure. The company’s second-quarter non-GAAP earnings of $3.61 per share increased 32.7% year over year and surpassed the Zacks Consensus Estimate of $3.54 by 1.98%. Revenues increased 19.5% year over year to $3.50 billion, topping the consensus estimate by 0.8%. Automotive remained NXPI's largest business, generating $1.94 billion in revenues, up 12% year over year. Growth was fueled by continued momentum in software-defined vehicles, electrification and connectivity, with accelerating design wins for the S32 processor family and next-generation Ethernet switches. Industrial & IoT revenues rose 38% year over year to $755 million, benefiting from strong adoption of i.MX, RT and MCX processing platforms across factory automation and industrial applications. Communication Infrastructure & Other revenues climbed 41% year over year to $452 million, supported by increasing data center networking demand and continued ramp-ups of UCODE RFID products. Mobile revenues totaled $351 million, up 6% year over year, reflecting stable demand for secure mobile transaction solutions despite normal seasonal trends. Management highlighted AI as an increasingly important long-term growth driver, noting that AI workloads are moving beyond cloud infrastructure into vehicles, factories and robotics markets where NXP already maintains leadership positions. The company reiterated that its 2026 data center revenues are expected to exceed $500 million compared with roughly $200 million in 2025. Growth is being driven by demand for control-plane processors, networking, rack management, cooling, power management and security applications used in hyperscale AI infrastructure. Non-GAAP gross profit increased to $2.03 billion, while non-GAAP gross margin expanded 150 basis points year over year to 58.0%. Non-GAAP operating income rose 31% year over year to $1.23 billion, with operating margin improving 310 basis points to 35.1%, reflecting favorable product mix and higher operating leverage. NXP generated $860 million in operating cash flow during the quarter. Net capital expenditures totaled $69 million, resulting in non-GAAP free cash flow of $791 million, representing 22.6% of revenues. The company returned $360 million to shareholders during the quarter through $256 million in dividends and $104 million in share repurchases. Following quarter-end, NXP repurchased an additional $32 million of shares under its 10b5-1 program. The company also repaid $750 million of senior unsecured notes using available cash. For the third quarter of 2026, NXP expects revenues between $3.65 billion and $3.85 billion. At the midpoint, revenues of $3.75 billion imply 7% sequential growth and 18% year-over-year growth. The company projects non-GAAP gross margin of 58.5% at the midpoint, and non-GAAP earnings per share of $4.11, indicating continued operating leverage as demand strengthens across its key markets. In the past month, investors have witnessed a upward trend in estimates revision. At this time, NXP has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, NXP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. NXP belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, MaxLinear (MXL), has gained 10% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. MaxLinear reported revenues of $168.85 million in the last reported quarter, representing a year-over-year change of +55.2%. EPS of $0.35 for the same period compares with $0.02 a year ago. MaxLinear is expected to post earnings of $0.56 per share for the current quarter, representing a year-over-year change of +300%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for MaxLinear. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report MaxLinear, Inc (MXL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The chipmaker looks dear on profits and slightly cheap on cash, and what sits under that gap is a business that turns far more of each sales dollar into cash than into profit while it swaps a shrinking handset exposure for faster end markets in data centers and automotive. GlobalFoundries (GFS) stock is down 35% over the past month, and down 23% over the trailing three months against a 3.9% gain for the S&P 500. A fall that size usually leaves a stock cheap. This one is not: at about $50 a share, for a market capitalization near $27.8 billion, it trades at 35.7 times earnings against 23.9 for the S&P 500. On cash flow, the same stock is cheaper than the index. So Why Is It Cheaper Than The Market On Cash Flow? Sales carry a premium too: 4.1 times revenue against 3.4 for the S&P 500. The cash-flow multiple is 14.3 against 15.7 for the index, because the company turns far more of each sales dollar into cash than into profit. Over the trailing twelve months, it converted 28% of revenue into operating cash flow, versus 22% for the market, roughly $1.9 billion on $6.8 billion of sales, while 11.4% of that revenue reached net income. What Have Three Years Actually Done To The Top Line? Shrunk it. Revenue over the trailing twelve months was $6.8 billion, essentially unchanged from a year earlier, and across the last three years it has contracted at a 5.0% average annual rate while the S&P 500 compounded at 5.7%. Profitability sits under the market too: a 12.1% operating margin against 18.4% for the index and an 11.4% net margin against 13.0%. In the first quarter of 2026 the top line grew 3.1% year over year to $1.6 billion, but one quarter is a data point, not a trend. Can The Faster End Markets Outrun The Shrinking Handset Business? The mix shift is what a buyer is paying for. In the first quarter of 2026, communications infrastructure and data centers made up about 14% of the total and grew 32% year over year; automotive, about 23%, grew 24%. The part pulling the other way is bigger: smart mobile devices, about 34% of the total, fell 5% and is guided down a high single-digit percentage across 2026. By the company's own account, silicon photonics should roughly double in 2026 and exit 2028 above a $1 billion run rate, and the 2026 growth outlook for comms and data centers is now a high-30s percentage, up from about 30%. The bear objection is durability, not scale: a 14% slice has to keep compounding at 32% while the largest end market, 34% of the total, is guided down all year, and one analyst asked whether a high-30s pace is a share gain when parts of the AI complex compound at 50% to 100%. What Has A Market Break Cost This Stock Before? Plenty. In the 2022 inflation shock, GFS fell 42% against a 24% drop for the S&P 500, and from its low it took about 47 months to climb back to its pre-crisis high. It is already deep in a hole the market has not shared: the stock sits about 44% below its 52-week high of $89.83, even after a 27% trailing twelve-month return, and the options market prices implied volatility at 77, the 89th percentile of its trailing one-year range. Gross Margin, Design Wins And The Price Adjustments To Watch So what would make the price worth paying? Three things. First, the company's own target: exiting 2026 at or above a 30% gross margin, against about 29% on a non-IFRS basis in the first quarter of 2026 and a guide near 29% for the second quarter of 2026, a quarter that has since closed with results still to report. Working against that target is a roughly half-point quarterly cost headwind from supply chain security. Second, whether the faster end markets lift the three-year top-line rate out of negative territory; the leading indicator is the 50% year-over-year jump in first-quarter 2026 design wins. Third, the price adjustments management says start toward the back end of 2026 and carry into 2027. Get those, and the premium has support; miss them, and what you keep paying is 35.7 times earnings against 23.9 for the market. Rather than settle that on instinct, you can score growth, profitability, risk, and value together with a five-factor buy-or-sell scorecard. The Premium Can Compress While You Wait For The Margin Even if the margin story lands, the multiple can reprice long before the business does, and this stock fell 42% in a downturn that cost the market 24%. Compounding does not require winning that timing argument, only that no single holding decides your result. That is the idea behind the Trefis High Quality portfolio, a rules-based basket built so one position cannot set the outcome. That portfolio has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance exceeded expectations driven by a combination of secular content growth in automotive and a cyclical recovery in core industrial franchises. The company-specific growth drivers, representing one-third of total revenue, grew in the mid-20% range, outpacing the broader market through software-defined vehicle (SDV) and electrification trends. Automotive growth of 17% (adjusted for divestitures) was fueled by architecture shifts toward SDVs, where NXP is securing multi-year platform commitments for Ethernet switches and processors. Industrial and IoT strength is being propelled by the 'cognification' of the edge, with AI-enabled processors expected to reach 15% of segment revenue by 2026. Management attributes margin expansion to structural improvements in product mix and factory utilization discipline rather than temporary market fluctuations. The data center franchise is scaling rapidly toward a $500 million target for 2026, focused on the control plane of AI infrastructure where industrial-grade reliability is critical. Q3 guidance assumes sequential growth across all end markets and regions, reflecting expanded customer adoption of the differentiated portfolio. Management expects the momentum from 2026 to carry into 2027, underpinned by the launch of next-generation 5-nanometer and 16-nanometer automotive products. The 'Neural Axis' architecture is being positioned as the foundation for physical AI, requiring distributed workloads across sensing, thinking, and acting layers. Guidance incorporates selective price adjustments to offset inflationary input costs, though management's primary strategy remains mitigating pressure through operational efficiency. Visibility has improved into 2027, with book-to-bill ratios above 1.0 and a growing backlog extending up to 18 months out. The sale of the MEMS sensor business earlier in the year creates a year-over-year comparison headwind that masks the underlying high-teens growth in automotive. Inventory levels include approximately 9 days of prebuilds specifically designated for planned front-end factory consolidations. Supply chain risks persist in the form of higher input costs for substrates and precious metals, which may necessitate further pass-through pricing to customers. NXP has invested approximately $2.4 billion to date in the VSMC and ESMC joint ventures, representing 70% of its total planned commitment to secure future capacity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explicitly stated they see no evidence of restocking among Western Tier 1 suppliers, who continue to operate with tight working capital and place 'hand-to-mouth' late orders. Growth is currently driven by content gains from architecture shifts rather than cyclical inventory accumulation. The design win funnel for physical AI assets (including Kinara) grew from $1 billion to over $1.5 billion in the last 90 days. This pipeline is highly diversified, representing over 200 unique customers across industrial and automotive applications. Lead times are extending for a significant portion of the portfolio, with many products now exceeding 16 weeks. Customer escalations have doubled since the previous quarter, signaling a shift back to normalized long-term ordering patterns as customers realize they must secure capacity. Pricing was essentially neutral in Q2, but selective increases are being implemented in Q3 to protect margins against rising foundry and back-end costs. Management clarified that pricing is used as a strategic lever for value capture and market share, not just a tactical response to inflation.

NXP Semiconductors N.V. NXPI emphasized expanding demand across automotive, industrial and emerging artificial intelligence (AI) applications as management discussed a stronger second-half outlook following second-quarter 2026 results. Executives highlighted software-defined vehicles, edge AI, data center opportunities and improving demand signals as key drivers shaping the company’s growth trajectory. NXPI reported automotive revenues of $1.94 billion in the second quarter, up 12% year over year. Management said growth was driven by software-defined vehicles, electrification and connectivity rather than inventory restocking. CEO Rafael Sotomayor said automotive growth was increasingly tied to higher content per vehicle as customers transition toward new architectures. He noted that software-defined vehicle design wins, including S32 and S32K platforms, continue to expand NXP’s role in future vehicle systems. During Q&A, Sotomayor told a Morgan Stanley analyst that NXP Semiconductors was not seeing a broad restocking cycle among automotive customers. He emphasized that content growth from architecture changes remains the primary contributor to automotive momentum. NXP Semiconductors highlighted physical AI as a major long-term opportunity as intelligence moves from cloud environments into vehicles, factories and robots. Management said the company’s combination of processing, connectivity and security capabilities positions it for edge AI applications. Sotomayor said AI-enabled processors are expected to represent approximately 15% of industrial and IoT processor revenue in 2026, more than doubling from the prior year. He added that customer conversations increasingly include AI deployment strategies. The company also discussed the expanding pipeline connected to its Kinara acquisition. CFO Bill Betz said the physical AI design win funnel increased to more than $1.5 billion and represented more than 200 distinct customers. NXP Semiconductors reported second-quarter 2026 non-GAAP earnings per share of $3.61, which beat the Zacks Consensus Estimate of $3.54. NXPI’s revenues of $3.50 billion increased 19% year over year and surpassed the Zacks Consensus Estimate of $3.47 billion. NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote CFO Bill Betz said non-GAAP gross margin was 58%, supported by improved product mix, factory utilization and operating leverage. Non-GAAP operating margin reached 35.1%, expanding from the prior year period. The company generated $860 million in operating cash flow and $791 million in non-GAAP free cash flow during the quarter. Management also noted $360 million in capital returns through dividends and share repurchases. NXPI said data center exposure is becoming an additional growth engine, with management expecting revenues from the market to exceed $500 million in 2026 compared with approximately $200 million in 2025. Management described NXPI’s role in data centers as focused on control-plane functions, including top-of-rack switching, SmartNIC control and infrastructure monitoring, where the company applies its industrial processing expertise. The company linked data center growth with its broader edge intelligence strategy, noting that demand for real-time monitoring, security and low-power processing aligns with existing capabilities across automotive and industrial markets. NXPI guided third-quarter revenues to $3.75 billion at the midpoint, representing 18% year-over-year growth and 7% sequential growth. Management expects non-GAAP gross margin of 58.5% and non-GAAP EPS of $4.11 at the midpoint. Executives said internal demand indicators improved, with backlog continuing to build and visibility extending further into future quarters. Betz said book-to-bill remained above one and customer escalations increased. During Q&A, analysts focused on inventory, pricing and future growth. Management said it had not seen automotive restocking among Western Tier 1 customers but continued to see late orders and stronger demand signals. NXP maintained confidence in its long-term growth strategy, with management pointing to continued expansion in software-defined vehicles, industrial edge processing and physical AI applications. Executives said newer automotive products and AI deployments remain in early stages of adoption. Management also reiterated confidence in its previously discussed 2027 outlook, citing improving business momentum, design-win ramps and opportunities from newer product platforms. NXP carries a Zacks Rank #2 (Buy), which indicates favorable earnings estimate revision trends under the Zacks Rank methodology. The Zacks Rank can change as analysts update earnings estimates following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D. Zacks Style Scores use grades from A to F to measure characteristics such as value, growth and momentum, with higher scores representing stronger attributes. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NXP Semiconductors N.V. NXPI reported better-than-expected second-quarter 2026 results, driven by broad-based strength across its end markets, accelerating adoption of software-defined vehicles, industrial processing solutions and growing demand from AI data center infrastructure. The company’s second-quarter non-GAAP earnings of $3.61 per share increased 32.7% year over year and surpassed the Zacks Consensus Estimate of $3.54 by 1.98%. Revenues increased 19.5% year over year to $3.50 billion, topping the consensus estimate by 0.8%. Automotive remained NXPI's largest business, generating $1.94 billion in revenues, up 12% year over year. Growth was fueled by continued momentum in software-defined vehicles, electrification and connectivity, with accelerating design wins for the S32 processor family and next-generation Ethernet switches. NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote Industrial & IoT revenues rose 38% year over year to $755 million, benefiting from strong adoption of i.MX, RT and MCX processing platforms across factory automation and industrial applications. Communication Infrastructure & Other revenues climbed 41% year over year to $452 million, supported by increasing data center networking demand and continued ramp-ups of UCODE RFID products. Mobile revenues totaled $351 million, up 6% year over year, reflecting stable demand for secure mobile transaction solutions despite normal seasonal trends. Management highlighted AI as an increasingly important long-term growth driver, noting that AI workloads are moving beyond cloud infrastructure into vehicles, factories and robotics markets where NXP already maintains leadership positions. The company reiterated that its 2026 data center revenues are expected to exceed $500 million compared with roughly $200 million in 2025. Growth is being driven by demand for control-plane processors, networking, rack management, cooling, power management and security applications used in hyperscale AI infrastructure. Non-GAAP gross profit increased to $2.03 billion, while non-GAAP gross margin expanded 150 basis points year over year to 58.0%. Non-GAAP operating income rose 31% year over year to $1.23 billion, with operating margin improving 310 basis points to 35.1%, reflecting favorable product mix and higher operating leverage. NXP generated $860 million in operating cash flow during the quarter. Net capital expenditures totaled $69 million, resulting in non-GAAP free cash flow of $791 million, representing 22.6% of revenues. The company returned $360 million to shareholders during the quarter through $256 million in dividends and $104 million in share repurchases. Following quarter-end, NXP repurchased an additional $32 million of shares under its 10b5-1 program. The company also repaid $750 million of senior unsecured notes using available cash. For the third quarter of 2026, NXP expects revenues between $3.65 billion and $3.85 billion. At the midpoint, revenues of $3.75 billion imply 7% sequential growth and 18% year-over-year growth. The company projects non-GAAP gross margin of 58.5% at the midpoint, and non-GAAP earnings per share of $4.11, indicating continued operating leverage as demand strengthens across its key markets. NXPI currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Analog Devices have rallied 37.1% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 59.4% year over year. Shares of Applied Materials have skyrocketed 101.1% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 4 cents over the past 30 days, indicating a rise of 28.9% year over year. Cisco Systems shares have surged 48.7% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EINDHOVEN, The Netherlands, July 28, 2026 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, which ended June 28, 2026. “NXP delivered second-quarter revenue of $3.5 billion, up 19 percent year-on-year and 10 percent sequentially, with growth across all end markets and all regions. This performance reflects the strength of our company-specific growth drivers, particularly in Software-Defined Vehicles and Physical AI, with Data Center emerging as an additional growth engine. Our strong first-half results and third-quarter guidance reinforce our confidence in achieving our financial commitments to drive long-term shareholder value. Underlying these results, 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,” said Rafael Sotomayor, NXP President and Chief Executive Officer. Key Highlights for the Second Quarter 2026: Revenue was $3.50 billion, up 19 percent year-on-year; GAAP gross margin was 57.3 percent, GAAP operating margin was 30.6 percent and GAAP diluted Net Income per Share was $3.02; Non-GAAP gross margin was 58.0 percent, non-GAAP operating margin was 35.1 percent, and non-GAAP diluted Net Income per Share was $3.61; Cash flow from operations was $860 million, with net capex investments of $69 million, resulting in non-GAAP free cash flow of $791 million or 22.6 percent of revenue; Capital return during the quarter was $360 million, representing 45.5 percent of second quarter non-GAAP free cash flow. Dividends paid during the quarter were $256 million, and share buybacks were $104 million. After the end of the second quarter, between June 29, 2026, and July 24, 2026, NXP executed via a 10b5-1 program additional share repurchases totaling $32 million; and On April 20, 2026, NXP repaid the $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due June 18, 2026, at par using available cash. Summary of Reported Second Quarter 2026 ($ millions, unaudited) (1) Additional Information for the second quarter 2026: Guidance for the Third Quarter 2026: ($ millions, except Per Share data) (1) Note (1) Additional Information: GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(5) million; Share-based Compensation, $(14) million; Other Incidentals, $(5) million; GAAP Operating Income (loss) is expected to include PPA effects, $(36) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(26) million; GAAP Financial Income (expense) is expected to include Other financial expense $(10) million; GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(1) million; GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments. NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances. Non-GAAP Financial Measures In managing NXP's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP's underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management. These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP's operations. In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Other income, (vi) Operating income (loss), (vii) Operating margin, (viii) Financial Income (expense), (ix) Income tax benefit (provision), (x) Results relating to foundry equity-accounted investees, (xi) Net income (loss) attributable to stockholders, (xii) Earnings per Share - Diluted, (xiii) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xiv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments. The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.). Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, July 28, 2026 at 4:30 p.m. U.S. Eastern Daylight Time (EDT) to review the second quarter 2026 results in detail. Interested parties may preregister to obtain a user-specific access code for the call here. The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call. About NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.27 billion in 2025. Find out more at www.nxp.com. Forward-looking Statements This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which our products are incorporated; recent changes in global trade policy including tariffs and related trade actions announced by the U.S., China and other countries, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in our customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia, and the continued hostilities and armed conflict in the Middle East including the ongoing military conflict involving Iran and the resulting disruption to energy markets, industrial gas supplies and global logistical routes, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance our debt at or before maturity to meet our debt service, research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov. For further information, please contact: NXP-CORP NXP SemiconductorsTable 1: Condensed consolidated statement of operations (unaudited) NXP SemiconductorsTable 2: Condensed consolidated balance sheet (unaudited) NXP SemiconductorsTable 3: Condensed consolidated statement of cash flows (unaudited) NXP SemiconductorsTable 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited) NXP SemiconductorsTable 5: Adjusted EBITDA and Free Cash Flow (unaudited)

NXP Semiconductors (NXPI) came out with quarterly earnings of $3.61 per share, beating the Zacks Consensus Estimate of $3.54 per share. This compares to earnings of $2.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.98%. A quarter ago, it was expected that this chipmaker would post earnings of $2.98 per share when it actually produced earnings of $3.05, delivering a surprise of +2.35%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. NXP, which belongs to the Zacks Semiconductor - Analog and Mixed industry, posted revenues of $3.5 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $2.93 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NXP shares have added about 23.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While NXP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NXP was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.02 on $3.68 billion in revenues for the coming quarter and $14.84 on $14.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - Analog and Mixed is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Analog Devices (ADI), is yet to report results for the quarter ended July 2026. The results are expected to be released on August 19. This semiconductor maker is expected to post quarterly earnings of $3.33 per share in its upcoming report, which represents a year-over-year change of +62.4%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. Analog Devices' revenues are expected to be $3.92 billion, up 36.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research