NXP Semiconductors NV (NXPI) First Take In line quarter and guidance, relative to more bullish peer results

Equity Research 28 July 2026 | 4:33PM EDT

NXP Semiconductors NV (NXPI): First Take: In-line quarter and guidance, relative to more bullish peer results

Key stock takeaways: We expect the stock to trade modestly lower following a solid James Schneider, Ph.D. | quarter with guidance that fell short of the most bullish expectations. We believe Goldman Sachs & Co. LLC investor expectations were somewhat muted, in part due to industry datapoints Khalil Fenina suggesting relatively tepid automotive end-market demand trends - but these had | been elevated given strong results from peer Texas Instruments. We expect investors Goldman Sachs & Co. LLC

to focus on critical elements of management’s commentary on the conference call, Anmol Makkar | including (1) order trends in the automotive and industrial verticals; (2) the rate of Goldman Sachs & Co. LLC expected channel refill in coming quarters; (3) commentary on pricing actions and input costs; (4) company-specific design win traction with the company’s S32 Luya You | automotive processing platform. Goldman Sachs & Co. LLC

Quarterly results in line with the Street: NXP reported revenue of $3.50 bn, in line with GS at $3.50 bn and the Street (Visible Alpha) at $3.47 bn. Gross margin (excl. SBC) of 58.0% was below GS at 58.3% and in line with the Street at 57.9%. Non-GAAP EPS (excl. SBC) of $3.61 was just below GS at $3.66 but above the Street at $3.54. Automotive revenue of $1.94 bn was in line with GS at $1.95 bn and the Street at $1.94 bn, Industrial & IoT revenue of $755 mn was just above GS at $753 mn and the Street at $742 mn, Mobile revenue of $351 mn was in line with GS at $350 mn and the Street at $347 mn, and Comms Infra. & Other revenue came in at $452 mn, just above GS at $445 mn and the Street at $440 mn.

3Q guidance is just above the Street. NXP guided 3Q slightly above the Street on revenue, gross margin, and EPS. Revenue was guided to $3.75 bn at the midpoint, which is just above GS at $3.68 bn and the Street at $3.71 bn. Gross margin was guided to 58.5%, slightly below GS at 58.7% and the Street at 58.9%. EPS (excl. SBC) guidance of $4.11 was just above GS at $4.05 and the Street at $4.06.

Read-through to our coverage: We expect a modestly negative initial reaction for the analog group. We would expect the most direct read-across for ADI (Buy) and ON (Neutral) given their relatively high automotive exposure.

Price target and risks: Our 12-month price target of $325 is based on an 18X P/E multiple applied to our normalized EPS of $18.00. Key downside risks: (1) renewed end-demand weakness in Automotive; (2) timing and the shape of the recovery remain uncertain; (3) unfavorable pricing.

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Goldman Sachs NXP Semiconductors NV (NXPI)

Exhibit 1: NXP - Variance summary

2Q26 Financials ($ mn, except EPS) Actual GS Street Actual/GS Actual/Street Automotive 1,938 1,951 1,939 -0.7% -0.1% Industrial & IoT % 1.7% Mobile % 1.2% Comms. Infra. & Other % 2.6% Total Revenue 3,496 3,499 3,468 -0.1% 0.8% QoQ 4.8% 10.0% 9.0% YoY 23.3% 19.6% 18.5% Gross Margin (excl. SBC) 58.0% 58.3% 57.9% -29 bps +11 bps Operating Income (excl. SBC) 1,228 1234 1,204 -0.5% 2.0% EPS (excl. SBC) $3.61 $3.66 $3.54 -1.5% 1.8%

Source: Company data, Goldman Sachs Global Investment Research, Visible Alpha Consensus Data

Exhibit 2: NXP - Guidance 3Q26E Financials ($ mn, except EPS) High Low Midpoint GS Street vs. GS vs. Street Total Revenue 3,850 3,650 3,750 3,684 3,709 1.8% 1.1% QoQ 10.1% 4.4% 7.3% 5.4% 6.1% YoY 31.6% 24.7% 32.3% 16.1% 16.9% Gross Margin (excl. SBC) 59.0% 58.0% 58.5% 58.7% 58.6% -16 bps -11 bps Operating Income (excl. SBC) 1,449 1,314 1,382 1339 1,362 3.1% 1.5% EPS (excl. SBC) $4.32…