NXP Semiconductors (NXPI) · Q2 2026 results and valuation

At −2.4% growth a year (3-year revenue growth), the model's fair value is $49.36 a share — the stock trades 446% above it. Today's price assumes 14.3% growth a year.

1. Guidance

   To recap, 2025, revenue was approximately $200 million, and NXP Semiconductors expects to exceed $500 million in 2026.

2. Guidance

   NXP Semiconductors expects non-GAAP gross margin of 58.5%, plus or minus 50 basis points which is up 150 basis points year-on-year and up 50 basis points sequentially, driven by the higher revenue...

3. Figure

   NXP Semiconductors' company-specific growth drivers grew in the mid-20% range year-over-year, and represented roughly 1/3 of second quarter revenue.

4. Fading

   Adjusted for the sales of the MEMS Sensors business, automotive growth was 10% year-over-year.

   Source quote

   “Adjusted for the sales of the MEMS Sensors business, automotive growth was 10% year-over-year. In automotive, revenue was $1.78 billion, up 6% year-over-year and in line with expectations. During the quarter, the growth was driven primarily by accelerating customer software-defined vehicle programs, improved electrification trends and continued momentum in radar and connectivity.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“And so very strong growth in industrial and IoT for a total growth for the quarter into the high 30s.”

“In addition, our core businesses increased in the high teens range year-over-year that broad-based momentum is also contributing to our growth.”

“Margin expansion is structural, capital allocation is disciplined, and we are positioned to deliver expanding profitability and growing returns for years to come.”