Netherlands' NXP Q2 revenue beats, driven by software-defined vehicles, physical AI

Overview

• Netherlands chipmaker's Q2 revenue rose 19% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Growth driven by software-defined vehicles, physical AI, and broad end-market demand

Outlook

• NXP expects Q3 2026 revenue between $3.65 bln and $3.85 bln

• Company sees Q3 2026 non-GAAP diluted EPS between $3.89 and $4.32

Result Drivers

• SOFTWARE-DEFINED VEHICLES - Co said growth was driven by demand for software-defined vehicle solutions

• PHYSICAL AI - Co cited increased demand for physical AI applications in vehicles, factories, and robots

• BROAD END-MARKET GROWTH - Co reported revenue growth across all end markets and regions

Company press release: ID:nGNXbC51dn

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for NXP Semiconductors NV is $315.00, about 17.7% above its July 27 closing price of $267.67

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 28 - Netherlands' ASM International Q2 revenue rises on AI-related demand, raises FY forecast

• July 28 - ASMI lifts 2027 outlook, forecasts third-quarter revenue above estimates

• July 27 - Amkor Technology Q2 revenue rises 26%, beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)