The chipmaker beat on third-quarter revenue and earnings and added $5 billion to its buyback. Its fourth-quarter revenue midpoint of $3.85 billion was a shade below the $3.86 billion analysts expected.
Earnings | FinancialMarkets.com | October 28, 2026
Tickers: NXPI, TXN, ADI, MCHP, ON, SOXX
NXP Semiconductors beat on the quarter it reported. Investors traded the one it forecast.
The chipmaker reported third-quarter revenue of $3.79 billion, up 19% from a year earlier and 8% from the second quarter, above the $3.76 billion analysts expected. Adjusted earnings were $4.20 a share against an estimate of $4.12. Automotive revenue, its largest business, rose 13% to $2.07 billion, and the communications infrastructure and other segment rose 54% to $503 million. NXP also added $5 billion to its share-repurchase authorization.
The guidance
For the fourth quarter, NXP guided to revenue of $3.75 billion to $3.95 billion, a range of down 1% to up 4% from the third quarter. The midpoint, $3.85 billion, was slightly below the $3.86 billion analysts expected, according to LSEG. The adjusted earnings guidance midpoint was $4.36 a share.
The gap against consensus is small, about 0.3%. The change in pace is not. Sequential growth goes from 8% in the third quarter to about 2% at the midpoint of the fourth-quarter range. For a company whose investors have been betting on a recovery in automotive and industrial chips, the shape of the guidance matters more than the size of the miss.
The reaction
NXP closed up 3.1% at $253.50 on Tuesday before the results. In thin early trading on Wednesday it was quoted around $236, about 6.9% lower. Coverage of the results split on whether the outlook was in line or disappointing, which fits a forecast that is close to consensus but implies slowing momentum.
A read-across to analog peers
NXP sells many of the same kinds of chips as Texas Instruments, Analog Devices, Microchip, ON Semiconductor, STMicroelectronics and Infineon, into the same car and factory customers. A forecast that points to a slower fourth quarter is a data point those companies' investors will weigh, though each has its own customer mix.
Where investors disagree
The constructive view is that a 19% annual increase, a beat on both lines, 13% automotive growth and a $5 billion buyback show a business recovering, with a fourth quarter that is still expected to be up from the third.
The skeptical view is that the recovery is losing speed. A drop from 8% to about 2% sequential growth at the midpoint suggests demand may be leveling off rather than building.
What to watch
Management's comments on automotive orders and inventories, segment detail for the fourth quarter, gross margin guidance, and the next results from Texas Instruments and other analog peers.