NXP closed the first quarter of 2026 with record profits. It posted $1.22 billion in profits, more than double the figure from a year earlier. Revenue also grew, by 12 percent, to $3.18 billion. All four market segments showed growth, leading to optimistic investors and a 14 percent increase in the stock’s value after the market closed.
The Eindhoven-based chipmaker exceeded Wall Street’s expectations on both profit and revenue. Adjusted earnings per share were $3.05, compared to an analyst estimate of $2.98. President and CEO Rafael Sotomayor spoke of a “broad-based improvement” across all four markets in which NXP operates, the result of “sustained investment, disciplined execution, and growing customer adoption.”
Automotive remained by far the largest segment, with revenue growth of 6 percent to $1.78 billion. Adjusted for the previously completed sale of the MEMS sensor business—a deal finalized in February for $900 million—growth actually reached 10 percent. Sotomayor cited the acceleration of software-defined vehicle programs among customers as a driver, alongside strong demand for radar and connectivity chips.
Industrial IoT as the fastest grower
The fastest-growing segment was Industrial IoT, with revenue rising 24 percent to $628 million. Sotomayor cited industrial automation, data centers, and energy storage as driving forces, supplemented by significant opportunities to play a meaningful role in the long term in the field of physical AI, or smart robotics. NXP previously strengthened its position in this segment through the acquisition of Kinara, a manufacturer of NPUs for edge AI. Communications Infrastructure, the third piece of the NXP puzzle, grew 21 percent to $380 million, and Mobile finally rose 16 percent to $391 million.
Notable is NXP’s rise in the data center market. Throughout 2025, the company generated approximately $200 million in data center-related revenue, split between Industrial IoT and communications infrastructure. Sotomayor expects this figure to grow to more than $500 million this year. NXP is focusing on areas such as cooling, power supply, and the software layer for managing infrastructure.
Q2 expectations well above consensus
For the second quarter, Sotomayor forecasts revenue of approximately $3.45 billion, which would represent annual growth of 18 percent. This is much better than the outlook three months ago, according to the CEO. Wall Street had expected “only” $3.27 billion. Adjusted earnings per share are estimated at $3.29 to $3.72, also well above the analyst consensus of $3.21.