NXP Semiconductors shares dropped 4.7% after reporting its second quarter 2026 financial results post-market on Tuesday.

For the quarter ended June 28, the Netherlands-based company reported adjusted earnings per share of $3.61 versus the $3.53 consensus estimate. GAAP EPS was $3.02 compared to the $2.89 consensus.

Revenue for the second quarter increased 19% year over year to $3.5B, which was more than the $3.46B estimate. Its adjusted gross margin was 58%, which matched the estimate and demonstrated improvement over the 56.4% reported during the same quarter last year.

Looking ahead, NXP guides for its adjusted EPS to range from $3.89 to $4.32, with a midpoint of $4.10 more than the $4.01 consensus. The company expects revenue to range from $3.65B to $3.85B with a midpoint of $3.75B, which is more than the $3.71B estimate.

"Our strong first-half results and third-quarter guidance reinforce our confidence in achieving our financial commitments to drive long-term shareholder value," said NXP CEO Rafael Sotomayor. "Underlying these results, AI is moving from the cloud into the physical world—into vehicles, factories, and robots—and it lands directly in the markets where NXP has leadership positions. NXP's portfolio of processing, connectivity, and security solutions positions us to enable next-generation edge intelligence for our customers."