NXP Semiconductors Beats Q3 Estimates, but a Cautious Forecast Sends the Stock Down About 8% After Hours

One of the biggest makers of chips for cars grew sales 19%, yet investors focused on what comes next.

What did NXP report, and why did the stock fall?

NXP Semiconductors (NXPI) reported third-quarter adjusted earnings of $4.20 a share on Tuesday, Oct. 27, 2026, beating the $4.11 analysts expected, on revenue of $3.79 billion, up 19%. But it forecast only about 2% sales growth for the fourth quarter, and the stock fell roughly 8% to 9% after hours.

NXP released the results after the market closed, according to its earnings release. Revenue was $3.786 billion, up 19% from a year earlier and 8% from the second quarter. On a standard accounting basis, NXP earned $3.48 a share. Analysts had expected revenue of about $3.76 billion, according to Investing.com.

The shares had climbed 3.12% during Tuesday's regular session to close at $253.50. After the report, Investing.com said they fell 7.6% to $234.25, while Financial News, citing GuruFocus, put the after-hours drop at roughly 9%.

Where did NXP's growth come from?

NXP, based in the Netherlands, makes chips that act as the brains and sensors of cars, factory equipment, phones and network gear. Cars are its biggest business by far.

Automotive revenue rose 13% to $2.07 billion. On the earnings call, the company said it was the first time automotive revenue had crossed $2 billion. In the release, CEO Rafael Sotomayor said the company sees "significant opportunities as software-defined vehicles drive increasing demand for our next-generation solutions." Software-defined vehicles are cars whose features are controlled and updated mainly through software, which takes more powerful chips.