NXP Semiconductors N.V.
For the period ended Jun 28, 2026. Filed Jul 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2026 · Filed Jul 28, 2026
NXPI$248.29+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-29; filed 2026-04-28.
0001413447-26-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-28; filed 2026-07-28.
0001413447-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 153 current paragraphs.
50 unchanged; 43 reworded; 42 added; 12 removed; 1 previous and 18 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
•Revenue was $3,496 million, up 19.5% year-on-year;
Current report
From a geographic perspective, revenue increased quarter-on-quarter in the China region by 31.5%, in the Asia Pacific region by 11.2%, in the EMEA region by 4.0%, and in the Americas region by 3.2%.
Current report
YTD 2026 Overview
Current report
YTD 2026 compared to YTD 2026
Current report
Revenue for the six months ended June 28, 2026, was $6,677 million compared to $5,761 million for the six months ended June 29, 2025, an increase of $916 million or 15.9%.
Current report
Revenue in the Automotive end market was $1,938 million, an increase of $209 million or 12.1% versus the year-ago quarter. The increase was predominantly due to growth in processors, with mixed-signal products also growing.
Current report
Revenue in the Industrial & IoT end market was $755 million, an increase of $209 million or 38.3% versus the year-ago quarter. The increase was due to strong growth in processors and mixed-signal products.
Current report
Revenue in the Communication Infrastructure & Other end market was $452 million, an increase of $132 million or 41.3% versus the year-ago quarter. The increase was predominantly due to growth in processors.
Current report
Revenue in the Mobile end market was $351 million, an increase of $20 million or 6.0% versus the year-ago quarter. The increase was due to growth in mixed-signal products, partially offset by declines in processors.
Current report
When aggregating all end markets together and reviewing sales channel performance, revenue from distributors was $2,072 million, an increase of $436 million or 26.7% versus the year-ago quarter. Revenue from direct customers was $1,375 million, an increase of $118 million or 9.4% versus the year-ago quarter.
Current report
Revenue in the Automotive end market was $3,720 million, an increase of $317 million or 9.3% versus the year-ago period. The increase was predominantly due to growth in processors, with mixed-signal products also growing.
Current report
When aggregating all end markets together, and reviewing sales channel performance, revenue from distributors was $3,934 million, an increase of $774 million or 24.5% versus the year-ago period. Revenue through direct customers was $2,657 million, an increase of $116 million or 4.6% versus the year-ago period.
Current report
From a geographic perspective, revenue increased year-on-year in the Americas region by 30.9%, in the China region by 14.6%, in the Asia Pacific region by 10.3%, and in the EMEA region by 8.7%.
Current report
Gross profit for the six months ended June 28, 2026, was $3,790 million, or 56.8% of revenue, compared to $3,122 million, or 54.2% of revenue for the six months ended June 29, 2025. The increase in gross profit was primarily driven by higher sales volumes and lower manufacturing costs resulting from improved factory utilization, manufacturing cost-efficiency initiatives and sourcing savings.
Current report
Operating expenses for thesix months ended June 28, 2026, totaled $1,830 million, or 27.4% of revenue, compared to $1,731 million, or 30.0% of revenue for thesix months ended June 29, 2025.
Current report
Increased variable compensation expenses due to improved company performance ($38 million)
Current report
A net increase in personnel related costs driven by our closed acquisitions, offset by certain ongoing cost-cutting initiatives ($3 million)
Current report
An adjustment to our estimate of the restructuring provision related to programs initiated in prior periods ($8 million)
Current report
R&D costs for thesix months ended June 28, 2026, increased by $72 million, or 6.4%, when compared to the six months ended June 29, 2025, driven by:
Current report
Increased variable compensation expenses due to improved company performance ($65 million)
Current report
A net increase in personnel related costs driven by our closed acquisitions, offset by certain ongoing cost-cutting initiatives ($19 million)
Current report
Increased variable compensation expenses due to improved company performance ($24 million)
Current report
A net decrease in personnel related costs due to certain ongoing cost-cutting initiatives, offset by higher costs driven by our closed acquisitions ($4 million)
Current report
SG&A costs for thesix months ended June 28, 2026, increased by $16 million, or 2.9%, when compared to thesix months ended June 29, 2025, primarily driven by:
Current report
Increased variable compensation expenses due to improved company performance ($34 million)
Current report
Lower legal expenses ($27 million)
Current report
Amortization of acquisition-related intangible assets for thesix months ended June 28, 2026, increased by $11 million, or 21.2%, when compared to thesix months ended June 29, 2025, primarily driven by amortization related to the acquisitions of TTTech Auto and Kinara.
Current report
Financial income (expense) was an expense of $193 million for thesix months ended June 28, 2026, compared to an expense of $178 million for thesix months ended June 29, 2025. Interest income decreased by $14 million due to lower cash levels and lower interest rates. Interest expense increased by $5 million mainly due to interest on three new bonds issued in August 2025, offset by lower interest expenses from the redemption of notes and decreased borrowing under our commercial paper program. Other financial income/(expense) decreased mainly due to the movement of fair value adjustments in equity securities.
Current report
The effective tax rate of 19.4% for the second quarter of 2026 was lower than the EAETR due to a recapture tax benefit effect as the initial EAETR was 19.9% as recorded in the first quarter of 2026.
Current report
Results relating to equity-accounted investees amounted to a loss of $3 million for the three months ended June 28, 2026, whereas the three months ended June 29, 2025, results relating to equity-accounted investees amounted to a loss of $28 million (which includes an impairment charge of $27 million related to our investment in Sigma Sense).
Current report
Results relating to equity-accounted investees amounted to a loss of $7 million for thesix months ended June 28, 2026, whereas the six months ended June 29, 2025, results relating to equity-accounted investees amounted to a loss of $32 million (which includes an impairment charge of $27 million related to our investment in Sigma Sense).
Current report
Decrease in inventories of $53 million due to higher sales volumes
Current report
Increase in receivables and other current assets of $135 million driven by the change in the insurance reimbursements relating to the Motorola Personal Injury Lawsuits
Current report
Increase in inventories of $84 million in order to align inventory on hand with expected demand
Current report
Purchase of investments of $381 million (driven primarily by the capital contributions of $316 million into VSMC)
Current report
Capital expenditures of $148 million
Current report
Purchase of interests in business (net of cash acquired) of $679 million (acquisition of TTTech Auto)
Current report
Capital expenditures of $222 million
Current report
Net cash used for financing activities of $1,965 million for the first six months of 2026 was primarily driven by:
Current report
Repayment of long-term debt of $1,251 million
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (12)
Previous report
•Revenue was $3,181 million, up 12.2% year-on-year;
Previous report
On February 2, 2026, we completed the sale of our MEMS Sensors business, resulting in cash proceeds of $878 million at closing and a gain on sale of $627 million recorded in Other income (expense). See Note 3 to the Consolidated Financial Statements for further information regarding NXP’s sale of the MEMS Sensors business.
Previous report
From a geographic perspective, the decrease of revenue quarter-on-quarter was driven by the China region with a decline of 15.7% and by the Asia Pacific region with a decrease of 6.6%.
Previous report
Revenue in the Automotive end market was $1,782 million, an increase of $108 million or 6.5% versus the year-ago period. The increase was attributable to growth in mixed-signal products and processors.
Previous report
When aggregating all end markets together and reviewing sales channel performance, revenue from distributors was $1,862 million, an increase of 338 million or 22.2% versus the year-ago period. Revenue from direct customers was $1,282 million, consistent with the year-ago period.
Previous report
Increased variable compensation expenses ($28 million)
Previous report
Increased personnel costs related to our acquisitions ($19 million)
Previous report
Increased personnel and integration related costs of our acquisitions ($15 million)
Previous report
Increased variable compensation expenses ($13 million)
Previous report
Lower legal fees ($23 million)
Previous report
The effective tax rate of 19.3% for the first quarter of 2026 was lower than the EAETR due to the income tax benefit for discrete items of $8 million. The discrete items are primarily related to the impact of foreign currency on income tax related items and changes in estimates for previous years.
Previous report
Results relating to equity-accounted investees amounted to a loss of $4 million for both the three months ended March 29, 2026, and the three months ended March 30, 2025.
Reworded paragraphs (43)
Previous wording
•GAAP gross margin was 56.2%, and GAAP operating margin was 47.3%;
Current wording
•GAAP gross margin was 57.3%, and GAAP operating margin was 30.6%;
Previous wording
•Non-GAAP gross margin was 57.1%, and non-GAAP operating margin was 33.1%;
Current wording
•Non-GAAP gross margin was 58.0%, and non-GAAP operating margin was 35.1%;
Previous wording
•Cash flow from operations was $793 million, with net capital expenditures on property, plant and equipment of $79 million, resulting in non-GAAP free cash flow of $714 million;
Current wording
•Cash flow from operations was $860 million, with net capital expenditures on property, plant and equipment of $69 million, resulting in non-GAAP free cash flow of $791 million;
Previous wording
•During the first quarter of 2026, NXP returned capital to shareholders with the payment of $256 million in cash dividends and the repurchase of $102 million of its common shares, for a total capital return of $358 million.
Current wording
•During the second quarter of 2026, NXP returned capital to shareholders with the payment of $256 million in cash dividends and the repurchase of $104 million of its common shares, for a total capital return of $360 million.
Previous wording
Revenue for the three months ended March 29, 2026, was $3,181 million compared to $3,335 million for the three months ended December 31, 2025, a decrease of $154 million or 4.6% quarter-on-quarter, in line with management's expectations. Within our end markets, the Communication Infrastructure & Other end market increased $46 million or 13.8%, the Industrial & IoT end market decreased $12 million or 1.9%, the Automotive end market decreased $94 million or 5.0%, and the Mobile end market decreased $94 million or 19.4%.
Current wording
Revenue for the three months ended June 28, 2026, was $3,496 million compared to $3,181 million for the three months ended March 29, 2026, an increase of $315 million or 9.9% quarter-on-quarter, in line with management's expectations. Within our end markets, the Automotive end market increased $156 million or 8.8%, the Industrial & IoT end market increased $127 million or 20.2%, the Communication Infrastructure & Other end market increased $72 million or 18.9%, and the Mobile end market decreased $40 million or 10.2%.
Previous wording
When aggregating all end markets together and reviewing sales channel performance, revenue from distributors was $1,862 million, a decrease of $163 million or 8.0% compared to the previous period. Revenue from direct customers was $1,282 million, an increase of $8 million or 0.6% versus the previous period.
Current wording
When aggregating all end markets together and reviewing sales channel performance, revenue from distributors was $2,072 million, an increase of $210 million or 11.3% compared to the previous period. Revenue from direct customers was $1,375 million, an increase of $93 million or 7.3% versus the previous period.
Previous wording
Our gross profit percentage for the three months ended March 29, 2026, of 56.2% increased compared to 54.2% for the three months ended December 31, 2025, driven mainly by impairments related to the scaling down of a non-strategic product line in the fourth quarter of 2025.
Current wording
Our gross profit percentage for the three months ended June 28, 2026, of 57.3% increased compared to 56.2% for the three months ended March 29, 2026, driven mainly by higher sales volumes and favorable product mix.
Previous wording
Operating income for the three months ended March 29, 2026, was $1,505 million compared to $744 million for the three months ended December 31, 2025, an increase of $761 million or 102.3%. The sequential increase was mainly driven by the gain on sale of the MEMS Sensors business and lower restructuring expenses.
Current wording
Operating income for the three months ended June 28, 2026, was $1,071 million compared to $1,505 million for the three months ended March 29, 2026, a decrease of $434 million or 28.8%. The decrease was mainly driven by the gain on sale of the MEMS Sensors business in the first quarter of 2026.
Previous wording
The following table presents operating results for each of the three-month periods ended March 29, 2026, and March 30, 2025, respectively:
Current wording
The following table presents operating results for each of the three- and six-month periods ended June 28, 2026, and June 29, 2025, respectively:
Previous wording
Revenue for the three months ended March 29, 2026, was $3,181 million compared to $2,835 million for the three months ended March 30, 2025, an increase of $346 million or 12.2%, in line with management’s expectations.
Current wording
Revenue for the three months ended June 28, 2026, was $3,496 million compared to $2,926 million for the three months ended June 29, 2025, an increase of $570 million or 19.5%, in line with management’s expectations.
Previous wording
From a geographic perspective, revenue increased year-on-year in the Americas region by 27.9%, in the EMEA region by 8.5%, in the Asia Pacific region by 6.9%, and in the China region by 2.8%.
Current wording
From a geographic perspective, revenue increased year-on-year in the Americas region by 34.0%, in the China region by 25.5%, in the Asia Pacific region by 13.6%, and in the EMEA region by 8.9%.
Previous wording
Revenue in the Industrial & IoT end market was $628 million, an increase of $120 million or 23.6% versus the year-ago period. The increase was attributable to growth in processors and mixed-signal products.
Current wording
Revenue in the Industrial & IoT end market was $1,383 million, an increase of $329 million or 31.2% versus the year-ago period. The increase was due to strong growth in processors and mixed-signal products.
Previous wording
Revenue in the Communication Infrastructure & Other end market was $380 million, an increase of $65 million or 20.6% versus the year-ago period. The increase was attributable to growth in processors, partially offset by declines in mixed-signal products.
Current wording
Revenue in the Communication Infrastructure & Other end market was $832 million, an increase of $197 million or 31.0% versus the year-ago period. The increase was due to growth in processors, partially offset by declines in mixed-signal products.
Previous wording
Revenue in the Mobile end market was $391 million, an increase of $53 million or 15.7% versus the year-ago period. The increase was attributable to growth in mixed-signal products and processors.
Current wording
Revenue in the Mobile end market was $742 million, an increase of $73 million or 10.9% versus the year-ago period. The increase was due to growth in mixed-signal products, partially offset by declines in processors.
Previous wording
Gross profit for the three months ended March 29, 2026, was $1,788 million, or 56.2% of revenue, compared to $1,560 million, or 55.0% of revenue for the three months ended March 30, 2025. The increase in gross margin is primarily driven by lower manufacturing costs (sourcing and cost efficiencies).
Current wording
Gross profit for the three months ended June 28, 2026, was $2,002 million, or 57.3% of revenue, compared to $1,562 million, or 53.4% of revenue for the three months ended June 29, 2025. The increase in gross profit is primarily driven byhigher sales volumes and lower manufacturing costs resulting from improved factory utilization and manufacturing cost-efficiency initiatives.
Previous wording
Operating expenses for the three months ended March 29, 2026, totaled $904 million, or 28.4% of revenue, compared to $855 million, or 30.2% of revenue for the three months ended March 30, 2025.
Current wording
Operating expenses for the three months ended June 28, 2026, totaled $926 million, or 26.5% of revenue, compared to $876 million, or 29.9% of revenue for the three months ended June 29, 2025.
Previous wording
R&D costs for the three months ended March 29, 2026, increased by $41 million, or 7.5%, when compared to the three months ended March 30, 2025, primarily driven by:
Current wording
R&D costs for the three months ended June 28, 2026, increased by $31 million, or 5.4%, when compared to the three months ended June 29, 2025, primarily driven by:
Previous wording
Lower share-based compensation costs ($7 million)
Current wording
Lower share-based compensation costs due to restructuring activities ($11 million)
Previous wording
SG&A costs for the three months ended March 29, 2026, increased by $3 million, or 1.1%, when compared to the three months ended March 30, 2025, primarily driven by:
Current wording
SG&A costs for the three months ended June 28, 2026, increased by $13 million, or 4.7%, when compared to the three months ended June 29, 2025, primarily driven by:
Previous wording
Amortization of acquisition-related intangible assets for the three months ended March 29, 2026, increased by $5 million, or 18.5%, when compared to the three months ended March 30, 2025, primarily driven by amortization related to the recent acquisitions of TTTech Auto and Kinara.
Current wording
Amortization of acquisition-related intangible assets for the three months ended June 28, 2026, increased by $6 million, or 24.0%, when compared to the three months ended June 29, 2025, primarily driven by amortization related to the acquisitions of TTTech Auto and Kinara.
Previous wording
Other income (expense) reflects an income of $621 million for the first quarter of 2026, compared to an income of $18 million in the first quarter of 2025. The increase was mainly driven by the gain on sale of $627 million related to the divestment of the MEMS Sensors business.
Current wording
Other income (expense) reflects an income of $616 million for thesix months ended June 28, 2026, compared to an income of $19 million in the six months ended June 29, 2025. The increase was mainly driven by the gain on sale of $627 million related to the divestment of the MEMS Sensors business in the first quarter of 2026.
Previous wording
Financial income (expense) was an expense of $96 million for the three months ended March 29, 2026, compared to an expense of $92 million for the three months ended March 30, 2025. The change in financial income (expense) is primarily attributable to in increase in interest expense of $8 million due to the issuance of new bonds and EIB Loan B, offset by lower expenses due to the redemption of notes. Other financial expenses decreased mainly due to fair value adjustments in equity securities resulting in a gain of $1 million for the three months ended March 29, 2026, versus a loss of $6 million for the three months ended March 30, 2025.
Current wording
Financial income (expense) was an expense of $97 million for the three months ended June 28, 2026, compared to an expense of $86 million for the three months ended June 29, 2025. The change in financial income (expense) is primarily attributable to a decrease in interest income of $10 million due to lower interest rates and lower cash levels. The decrease in interest expense is mainly driven by lower interest expenses from the redemption of notes and decreased borrowing under our commercial paper program, offset by the interest on three new bonds issued in August 2025. Other financial expenses increased year-over-year primarily due to favorable prior-year tax-related interest adjustments, partially offset by improved foreign exchange hedge results.
Previous wording
Our provision for income taxes for 2026 is based on our EAETR of 19.9%, which is lower than the Netherlands statutory tax rate of 25.8%, primarily due to tax benefits from the Netherlands and foreign tax incentives.
Current wording
Our provision for income taxes for 2026 is based on our EAETR of 19.7%, which is lower than the Netherlands statutory tax rate of 25.8%, primarily due to tax benefits from the Netherlands and foreign tax incentives.
Previous wording
The effective tax rate for the first quarter of 2026 was 19.3% compared to 20.6% for the same period in 2025, with discrete items in the respective periods impacting the rates accordingly. Excluding discrete items, the EAETR increased to 19.9% in 2026 from 18.8% in 2025, mainly as a result of a taxable capital gain and non-deductible goodwill associated with the divestiture of the MEMS Sensors business in the first quarter of 2026.
Current wording
The effective tax rate for the firstsix months of 2026 was 19.3% compared to 20.0% for the same period in 2025, with discrete items in the respective periods impacting the rates accordingly. Excluding discrete items, the EAETR increased to 19.7% in 2026 from 18.8% in 2025, mainly as a result of a taxable capital gain and non-deductible goodwill associated with the divestiture of the MEMS Sensors business in the first quarter of 2026.
Previous wording
Non-controlling interests are related to the third-party share in the results of consolidated companies, predominantly SSMC. Their share of non-controlling interests amounted to a profit of $11 million for the three months ended March 29, 2026, compared to a profit of $7 million for the three months ended March 30, 2025.
Current wording
Non-controlling interests are related to the third-party share in the results of consolidated companies, predominantly SSMC. Their share of non-controlling interests amounted to a profit of $15 million for the three months ended June 28, 2026, compared to a profit of $12 million for the three months ended June 29, 2025.
Previous wording
We derive our liquidity and capital resources primarily from our cash flows from operations. We continue to generate strong positive operating cash flows. At the end of the first quarter of 2026, our cash balance was $3,708 million, an increase of $441 million compared to December 31, 2025. Taking into account the available amount of the unsecured revolving credit facility of $3,000 million ("RCF"), we had access to $6,708 million of liquidity as of March 29, 2026. We currently use cash to fund operations, meet working capital requirements, for capital expenditures and for potential common stock repurchases, dividends and strategic investments. Based on past performance and current expectations, we believe that our current available sources of funds (including cash and cash equivalents, RCF of $3,000 million, plus anticipated cash generated from operations) will be adequate to finance our operations, working capital requirements, capital expenditures and potential dividends for at least the next twelve months.
Current wording
We derive our liquidity and capital resources primarily from our cash flows from operations. We continue to generate strong positive operating cash flows. At the end of the second quarter of 2026, our cash balance was $3,222 million, a decrease of $45 million compared to December 31, 2025. Taking into account the available amount of the unsecured revolving credit facility of $3,000 million ("RCF"), we had access to $6,222 million of liquidity as of June 28, 2026. We currently use cash to fund operations, meet working capital requirements, for capital expenditures and for potential common stock repurchases, dividends and strategic investments. Based on past performance and current expectations, we believe that our current available sources of funds (including cash and cash equivalents, RCF of $3,000 million, plus anticipated cash generated from operations) will be adequate to finance our operations, working capital requirements, capital expenditures and potential dividends for at least the next twelve months.
Previous wording
At March 29, 2026, our cash balance was $3,708 million of which $326 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During the first quarter of 2026, SSMC declared a dividend of $150 million, of which $75 million was paid in the first quarter, with 38.8% being paid to our joint venture partner.
Current wording
At June 28, 2026, our cash balance was $3,222 million of which $359 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During the first quarter of 2026, SSMC declared a dividend of $150 million, of which $75 million was paid in the first quarter, with 38.8% being paid to our joint venture partner.
Previous wording
Our cash outflows for capital expenditures were $79 million in the first three months of 2026, compared to $139 million in thefirst three months of 2025.
Current wording
Our cash outflows for capital expenditures were $148 million in the first six months of 2026, compared to $222 million in thefirst six months of 2025.
Previous wording
In the first three months of 2026, we repurchased approximately $102 million of shares.
Current wording
In the first six months of 2026, we repurchased approximately $206 million of shares.
Previous wording
Under our Quarterly Dividend Program, interim dividends of $1.014 per ordinary share were paid on January 7, 2026 ($256 million) and dividends of $1.014 per ordinary share were paid on April 9, 2026 ($257 million).
Current wording
Under our Quarterly Dividend Program, interim dividends of $1.014 per ordinary share were paid on January 7, 2026 ($256 million) and dividends of $1.014 per ordinary share were paid on April 9, 2026 ($256 million) and dividends of $1.014 per ordinary share were paid on July 9, 2026 ($256 million).
Previous wording
Our total debt, inclusive of aggregate principal, unamortized discounts, premiums, debt issuance costs and fair value adjustments, amounted to $11,724 million as of March 29, 2026, a decrease of $498 million compared to December 31, 2025 ($12,222 million).
Current wording
Our total debt, inclusive of aggregate principal, unamortized discounts, premiums, debt issuance costs and fair value adjustments, amounted to $10,976 million as of June 28, 2026, a decrease of $1,246 million compared to December 31, 2025 ($12,222 million).
Previous wording
On April 20, 2026, we repaid $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due June 18, 2026, at par using available cash.
Current wording
On April 20, 2026, we repaid the $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due June 18, 2026, at par using available cash.
Previous wording
As of March 29, 2026, we had outstanding fixed-rate notes with varying maturities for an aggregate principal amount of $10,749 million (collectively the “Notes”), of which $750 million is payable within 12 months. Future interest payments associated with the Notes total $2,777 million, with $396 million payable within 12 months.
Current wording
As of June 28, 2026, we had outstanding fixed-rate notes with varying maturities for an aggregate principal amount of $9,999 million (collectively the “Notes”), of which $999 million is payable within 12 months. Future interest payments associated with the Notes total $2,655 million, with $381 million payable within 12 months.
Previous wording
As of March 29, 2026, the Company had outstanding loans with the European Investment Bank (EIB) with maturities in 2030 and 2031 for an aggregated principal amount of $1,040 million. Future interest payments associated with the EIB loans total $229 million, with $47 million payable within 12 months.
Current wording
As of June 28, 2026, the Company had outstanding loans with the European Investment Bank (EIB) with maturities in 2030 and 2031 for an aggregated principal amount of $1,040 million. Future interest payments associated with the EIB loans total $217 million, with $47 million payable within 12 months.
Previous wording
Our net debt position (see section Use of Certain Non-GAAP Financial Measures) at March 29, 2026, amounted to $8,016 million, compared to $8,955 million as of December 31, 2025.
Current wording
Our net debt position (see section Use of Certain Non-GAAP Financial Measures) at June 28, 2026, amounted to $7,754 million, compared to $8,955 million as of December 31, 2025.
Previous wording
Our cash and cash equivalents during the first three months of 2026 increased by $445 million (excluding the effect of changes in exchange rates on our cash position of $(4) million) as follows:
Current wording
Our cash and cash equivalents during the first six months of 2026 decreased by $41 million (excluding the effect of changes in exchange rates on our cash position of $4 million) as follows:
Previous wording
For the first three months of 2026, our operating activities provided $793 million in cash. This was primarily the result of net income of $1,133 million, adjustments to reconcile the net income of $361 million and changes in operating assets and liabilities of $21 million. Adjustments to net income (loss) include non-cash items, such as gain on sale of assets of $(627 million), depreciation and amortization of $179 million, share-based compensation of $109 million and changes in deferred taxes (benefit) of $(28 million). Changes in operating assets and liabilities were primarily driven by a $115 million increase in receivables and other current assets due to the related timing of cash collection, $87 million decrease in inventories driven by lower external purchases, $182 million increase in other non-current assets due to payments to secure production supply (driven primarily by payments of $189 million to support the long-term capacity infrastructure of VSMC) and $231 million increase in accounts payable and other liabilities primarily due to a higher corporate tax accrual ($178 million) mainly driven by the capital gains tax on the divestiture of the MEMS Sensors business.
Current wording
For the first six months of 2026, our operating activities provided $1,653 million in cash. This was primarily the result of net income of $1,915 million, adjustments to reconcile the net income of $(79) million and changes in operating assets and liabilities of $(183) million. Adjustments to net income (loss) include non-cash items, such as gain on sale of assets of $(627 million), depreciation and amortization of $363 million, share-based compensation of $214 million and changes in deferred taxes (benefit) of $(41 million).
Previous wording
For the first three months of 2025 our operating activities provided $565 million in cash. This was primarily the result of net income of $497 million, adjustments to reconcile the net income of $299 million and changes in operating assets and liabilities of $(239 million). Adjustments to net income (loss) include non-cash items, such as depreciation and amortization of $209 million, share-based compensation of $127 million and changes in deferred taxes of $(27 million). Changes in operating assets and liabilities were primarily driven by a $110 million decrease in accounts payable and other liabilities as a result of lower purchase volumes and timing related to payments, $29 million increase in receivables and other current assets due to customer mix, and the related timing of cash collection and $106 million increase in other non-current assets due to payments to secure production supply with multiple vendors (driven primarily by payments of $125 million to support the long-term capacity infrastructure of VSMC).
Current wording
For the first six months of 2025 our operating activities provided $1,344 million in cash. This was primarily the result of net income of $954 million, adjustments to reconcile the net income of $647 million and changes in operating assets and liabilities of $(271) million. Adjustments to net income (loss) include non-cash items, such as depreciation and amortization of $416 million, share-based compensation of $244 million and changes in deferred taxes of $(24) million.
Previous wording
Net cash proceeds from investing activities of $508 million for the first three months of 2026 was primarily driven by the proceeds of $878 million (net of adjustments) from the sale of our MEMS Sensors business, partially offset by $249 million for the purchase of investments (driven primarily by the capital contributions of $196 million into VSMC), capital expenditures of $79 million, and $42 million for the purchase of identified intangible assets.
Current wording
Net cash proceeds from investing activities of $271 million for the first six months of 2026 was primarily driven by:
Previous wording
Net cash used for investing activities amounted to $216 million for the first three months of 2025 and principally consisted of the cash outflows for capital expenditures of $139 million, $53 million for the purchase of investments (driven primarily by the capital contributions of approximately $20 million into VSMC and approximately $16 million into ESMC) and $25 million for the purchase of identified intangible assets, including EDA (electronic design automation).
Current wording
Purchase of identified intangible assets of $79 million, including EDA (electronic design automation)
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Rearranged current paragraphs (18)
Current report — wording carried from elsewhere
From an end market perspective, NXP experienced growth across all end markets versus the year-ago quarter.
Current report — wording carried from elsewhere
Non-controlling interests are related to the third-party share in the results of consolidated companies, predominantly SSMC. Their share of non-controlling interests amounted to a profit of $26 million for thesix months ended June 28, 2026, compared to a profit of $19 million for thesix months ended June 29, 2025.
Current report — wording carried from elsewhere
Changes in operating assets and liabilities were primarily driven by:
Current report — wording carried from elsewhere
Increase in other non-current assets of $230 million due to payments to secure production supply (driven primarily by payments of $243 million to support the long-term capacity infrastructure of VSMC)
Current report — wording carried from elsewhere
Increase in receivables and other current assets of $101 million due to the related timing of cash collection
Current report — wording carried from elsewhere
Increase in accounts payable and other liabilities of $95 million primarily due to a higher corporate tax accrual ($91 million) mainly driven by the capital gains tax on the divestiture of the MEMS Sensors business
Current report — wording carried from elsewhere
Changes in operating assets and liabilities were primarily driven by:
Current report — wording carried from elsewhere
Decrease in accounts payable and other liabilities of $77 million as a result of lower purchase volumes and timing related to payments
Current report — wording carried from elsewhere
Proceeds of $878 million (net of adjustments) from the sale of our MEMS Sensors business
Current report — wording carried from elsewhere
Net cash used for investing activities amounted to $1,108 million for the first six months of 2025 was primarily driven by:
Current report — wording carried from elsewhere
Purchase of investments of $146 million for the (driven primarily by the capital contributions of $70 million into VSMC and approximately $32 million into ESMC)
Current report — wording carried from elsewhere
Purchase of identified intangible assets of $62 million, including EDA (electronic design automation)
Current report — wording carried from elsewhere
Purchase of treasury shares and restricted stock unit holdings of $206 million
Current report — wording carried from elsewhere
Dividend payments to common stockholders of $515 million
Current report — wording carried from elsewhere
Purchase of treasury shares and restricted stock unit holdings of $507 million
Current report — wording carried from elsewhere
Proceeds from the issuance of commercial paper notes of $2,211 million
Current report — wording carried from elsewhere
Proceeds from issuance of long-term debt of $370 million
Current report — wording carried from elsewhere
Proceeds from the issuance of common stock through stock plans of $39 million
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On January 5, 2026, we repaid the $500 million aggregate principal amount of outstanding 5.35% senior unsecured notes due March 1, 2026, at par using available cash.