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NXP Jumps as Q1 Tops Views and Q2 Outlook Comes In Strong

Stronger guidance refocuses investors on growth in core markets with improving cash returns.

Overview

  • NXP shares rose as much as 26% Wednesday after it beat first‑quarter estimates and forecast $3.35 billion to $3.55 billion in second‑quarter revenue.
  • The March quarter delivered $3.18 billion in revenue and adjusted earnings of $3.05 per share, both ahead of Wall Street forecasts.
  • Automotive stayed the biggest business at $1.78 billion, and the combined auto and Industrial IoT lines grew 18% from a year earlier.
  • CEO Rafael Sotomayor said data‑center related sales were about $200 million last year and could exceed $500 million in 2026.
  • Free cash flow reached about 22% of revenue and the company closed the $878 million MEMS Sensors sale, repaid $500 million of notes, and returned $358 million to holders, as TD Cowen and Morgan Stanley lifted price targets.