NXP Semiconductors reported strong second-quarter 2026 financial results, posting revenue of $3.5 billion, representing a 19 percent year-on-year increase and a 10 percent sequential rise for the quarter ended June 28, 2026.
The Netherlands-based semiconductor company recorded growth across all end markets and regions, supported by increasing demand for Software-Defined Vehicles, Physical AI, edge intelligence, and emerging Data Center applications.
NXP President and Chief Executive Officer Rafael Sotomayor said the company’s performance reflects the strength of its AI-driven growth strategy, as artificial intelligence expands beyond cloud computing into vehicles, industrial automation, robotics, and other edge computing applications.
He added that NXP’s portfolio of processing, connectivity, and security technologies positions the company to capitalize on the growing demand for intelligent edge solutions while supporting its long-term shareholder value objectives.
The Automotive segment remained NXP’s largest business, generating $1.938 billion in revenue during the second quarter, compared with $1.782 billion in the first quarter of 2026 and $1.729 billion in the second quarter of 2025.
NXP’s Automotive revenue increased 9 percent sequentially and 12 percent year on year, driven by continued momentum in software-defined vehicle technologies.
NXP’s Industrial & IoT business delivered the fastest expansion among its major segments. Revenue reached $755 million, rising from $628 million in the previous quarter and $546 million a year earlier. This represented 20 percent sequential growth and an impressive 38 percent annual increase, reflecting strong adoption of industrial automation, smart factory, and AI-enabled edge computing solutions.
NXP’s Mobile business reported $351 million in second-quarter revenue, compared with $391 million in the first quarter of 2026 and $331 million in the same period last year. While revenue declined 10 percent sequentially, it remained 6 percent higher year on year, indicating continued resilience despite quarterly market fluctuations.
NXP’s Communication Infrastructure & Other segment recorded the strongest annual growth, with revenue climbing to $452 million from $380 million in the previous quarter and $320 million in the second quarter of 2025. The business expanded 19 percent sequentially and 41 percent year on year, supported by growing demand for communications infrastructure, connectivity, and AI-related applications.
The company expects momentum to continue in the third quarter, guiding revenue to $3.65 billion-$3.85 billion, with a midpoint of $3.75 billion, implying 7 percent sequential growth and 18 percent annual growth.
Looking beyond the current quarter, NXP expects revenue to grow from $12.6 billion in 2024 to approximately $16.0 billion by 2027, representing a 6-10 percent CAGR. Automotive is projected to expand from $7.2 billion to around $9.5 billion, while Industrial & IoT is expected to increase from $2.3 billion to approximately $3.1 billion. Mobile revenue is forecast to remain broadly stable at around $1.6 billion, while Communication Infrastructure revenue is expected to stay near $1.7 billion through 2027. Strategic growth businesses are forecast to account for 38 percent of revenue by 2027, up from 27 percent in 2024.
BABURAJAN KIZHAKEDATH