NXP Semiconductors Raises Q2 Revenue to $3.35–3.55B after 12% Q1 Growth
NXP Semiconductors posted first-quarter revenue of $3.18 billion, up 12% year over year, and non-GAAP EPS of $3.05 versus estimates around $2.98, while GAAP EPS reached $4.43. The company raised its Q2 revenue forecast to $3.35–3.55 billion and guided EPS of $3.29–3.72, sending shares up 15%.
1. First-Quarter Financial Performance
NXP delivered Q1 revenue of $3.18 billion, a 12% increase year over year, with GAAP gross margin of 56.2% and non-GAAP gross margin of 57.1%. GAAP diluted EPS was $4.43 and non-GAAP EPS was $3.05, outperforming analyst forecasts, while automotive revenue reached $1.782 billion and industrial & IoT revenue hit $628 million.
2. Guidance and Market Reaction
For Q2, NXP set revenue guidance of $3.35–3.55 billion (5–12% sequential growth) and non-GAAP EPS guidance of $3.29–3.72, both above consensus, reflecting ongoing recovery in automotive and industrial chip demand. The upbeat outlook drove a 15% surge in extended trading.
3. Strategic Initiatives and Cash Deployment
The company generated $793 million in operating cash flow and $714 million in free cash flow, funded $102 million of share buybacks and $256 million of dividends, and repaid $500 million of notes. It realized $878 million from a MEMS sensors business sale (one-time gain of $627 million) and launched new products including the S32N7 processor series and eIQ Agentic AI framework, plus collaborations with GE HealthCare and NVIDIA.