NXP's automotive revenue rose 13 percent and its CEO tied demand to software-defined cars
NXP reported third-quarter automotive revenue of $2.07 billion, up 13 percent year-on-year, in its first results statement since Volkswagen named the company's S32K5 the common microcontroller for its zonal architecture.
NXP Semiconductors reported results on October 27 for the third quarter, which ended September 27, and filed them with the US Securities and Exchange Commission the same day. Automotive revenue was $2,070 million, up 13 percent year-on-year and 7 percent quarter-on-quarter, against $1,837 million in the third quarter of 2025 and $1,938 million in the second quarter of 2026.
Total revenue was $3,786 million, up 19 percent year-on-year and 8 percent sequentially. The company’s other segments were Industrial and Internet of Things at $802 million, up 39 percent year-on-year; Mobile at $411 million, down 4 percent year-on-year; and Communication Infrastructure and Other at $503 million, up 54 percent. GAAP gross margin was 57.8 percent and GAAP operating margin 32.4 percent. Channel inventory stood at 11 weeks, against 9 weeks a year earlier.
Rafael Sotomayor, NXP’s president and chief executive, said in the release that the company sees significant opportunities as software-defined vehicles drive increasing demand for its next-generation solutions, while data center infrastructure and what he called Trusted Physical AI applications create new vectors for long-term growth. The statement is forward-looking, and the release does not disclose any revenue split attributed to software-defined vehicle programs.
The only vehicle program named in the release is an existing one: NXP’s Trimension ultra-wideband ranging and radar, which it said will be deployed by the BMW Group across its fleet, starting with selected 2026 vehicle programs. The release also disclosed a new $5 billion share repurchase authorization approved by the board in October, after the quarter ended, on top of $1.3 billion remaining under the prior authorization. Guidance for the fourth quarter is revenue of $3,750 million to $3,950 million.