| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 21.0x | 17.3x | Around median | |
Growth | 54 | 8.8% | 7.1% | Around median | |
Quality | 84 | 15.8% | 4.5% | Top tier | |
Safety | 70 | 1.6x | 2.6x | Top tier | |
Capital Return | 89 | 1.64% | 0.06% | Top tier | |
Momentum | 53 | 6.0% | -1.6% | Around median | |
Sentiment | 64 | 18 | 3 | Around median |
The floor: what the company is worth if growth stopped today
71% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NXP Semiconductors operates in semiconductors for automotive, industrial systems, the Internet of Things, communications infrastructure, and mobile devices. The company generates revenue from processors and platforms such as S32 and S32K for software-defined vehicles, i.MX, RT, and MCX for industrial and edge computing, Layerscape solutions for data center control, UCODE radio-frequency identification products, as well as secure connectivity and mobile transaction technologies. In Q2 FY2026, the company's growth drivers represented approximately one-third of revenue and grew at a mid-twenties percentage rate year over year, while the core business grew at a high-teens percentage rate.
Q2 FY2026 revenue reached a record $3.5 billion, up 19% year over year and 10% sequentially, while the profit reported in the news was $767 million and adjusted earnings per share were $3.61. Adjusted gross profit reached $2.03 billion at a margin of 58%, and adjusted operating profit was $1.23 billion at a margin of 35.1%, up 310 basis points year over year. Revenue was distributed across automotive at $1.94 billion, industrial and Internet of Things at $755 million, communications infrastructure and other at $452 million, and mobile at $351 million.
EDGAR data confirms a broader earnings base over a longer period; revenue for the twelve months ended in FY2026 was approximately $12.6 billion, with gross profit of $6.9 billion, net income of $2.7 billion, and earnings per share of approximately $10.46. This compares with revenue of $12.3 billion, net income of $2 billion, and earnings per share of $7.95 in FY2025. Q2 FY2026 also generated operating cash flow of $860 million and adjusted free cash flow of $791 million, equivalent to approximately 23% of revenue.
The analyst consensus is "Buy," with an average target of $285, compared with a high target of $338 and a low target of $190. The average target is approximately 16% below the 52-week range high of $339.95, while the high target is close to that peak and the low target is close to the range low of $183. This wide dispersion reflects a fundamental divergence over the ability of growth in automotive, AI, and data centers to offset the risks of input costs and mobile weakness.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue rose 19% year over year to $3.5 billion, with growth across all end markets and regions. Automotive revenue reached $1.94 billion, while industrial and Internet of Things jumped 38% to $755 million and communications infrastructure rose 41% to $452 million. S32, S32K, i.MX, RT, and MCX platforms, alongside increased data center content, contributed to the company's growth drivers growing at a mid-twenties percentage rate.
The company expects data center revenue to exceed $500 million in FY2026, up from approximately $200 million in FY2025. Its contribution is concentrated in the control layer through Layerscape for managing top-of-rack switches and SmartNIC cards, in addition to monitoring, cooling, and securing rack components. Management believes that accelerating data-transfer speeds increases control-layer performance requirements, but it did not provide a revenue figure for this business beyond FY2026.
Management said on the July 28, 2026 call that it had not seen inventory restocking among Western automotive Tier 1 suppliers. Automotive growth was 12% in Q2 FY2026, or 17% excluding the MEMS sensor business divestiture, driven by increased content in software-defined vehicles. Growth drivers also represented 47% of automotive revenue, and the company expects the proportion to approach 50% in FY2027.
Automated analysis for informational purposes only — not investment advice.
Adjusted gross margin was 58% and adjusted operating margin was 35.1% in Q2 FY2026, following year-over-year expansions of 150 and 310 basis points, respectively. The company generated $860 million in operating cash flow and $791 million in adjusted free cash flow during the quarter. It ended the period with $3.2 billion in cash and net debt of $7.7 billion, equivalent to 1.5 times adjusted earnings before interest, taxes, depreciation, and amortization.
Reports on July 31, 2026 stated that NXP was in advanced talks to acquire Ambarella, which specializes in video processing and computer vision chips. Ambarella's capabilities could support NXP's push into automotive systems and AI-powered vision if the transaction is completed. However, the available information does not include an announcement that the acquisition was completed or disclose its price or terms, so its current significance remains strategic rather than a confirmed financial contribution.
The company expects revenue of $3.75 billion, with a $100 million margin of error, year-over-year growth of 18%, and sequential growth of 7%. It also targets an adjusted gross margin of 58.5%, an adjusted operating margin of 36.9%, and adjusted earnings per share of $4.11 at the midpoint of the range. It expects year-over-year growth of approximately 50% in communications infrastructure and other, compared with a mid-single-digit percentage decline in mobile.