NXP Semiconductors (NXPI) official guidance

As we mentioned in our Q2 call, AI enabled processors will represent approximately 15% of Industrial and IoT processor revenue in 2026.

Capital expenditures to be around 5% as we plan to bring on more back end capacity online in 2027.

We expect capital expenditures to be approximately 3% of revenue and equity payments to VSMC of $86 million and ESMC of $60 million

Assuming non GAAP annual effective tax rate of 17.5%, We now expect joint venture investee losses to be around about $80 million for the full year and suggest using about a $10 million loss for Q1 and a $20 million loss for Q2.

Below the line, we expect non GAAP financial expense to be $79 million, and our non GAAP tax rate to be approximately 17.5%.

This implies Q4 non GAAP earnings per share of $4.36 at the midpoint, an increase of 30% year over year demonstrating continued earnings power.

Assuming non GAAP annual effective tax rate of 17.5%, We now expect joint venture investee losses to be around about $80 million for the full year and suggest using about a $10 million loss for Q1 and a $20 million loss for Q2.

Assuming non GAAP annual effective tax rate of 17.5%, We now expect joint venture investee losses to be around about $80 million for the full year and suggest using about a $10 million loss for Q1 and a $20 million loss for Q2.

Assuming non GAAP annual effective tax rate of 17.5%, We now expect joint venture investee losses to be around about $80 million for the full year and suggest using about a $10 million loss for Q1 and a $20 million loss for Q2.

We expect capital expenditures to be approximately 3% of revenue and equity payments to VSMC of $86 million and ESMC of $60 million

We expect capital expenditures to be approximately 3% of revenue and equity payments to VSMC of $86 million and ESMC of $60 million

Below the line, we expect non GAAP financial expense to be $79 million, and our non GAAP tax rate to be approximately 17.5%.

We expect non GAAP gross margin of 59% plus or minus 50 basis points, driven by higher revenue and manufacturing utilizations.

We plan to expand our gross margins to 60% during 2027.

And furthermore, I think they will expand above 60% in 2028 with the ramp over our VSMC joint venture that we shared about in the past.

We expect noncontrolling interest to be $14 million, and $5 million of losses in our joint venture equity accounted investees.

We expect operating expenses for the first half to be around 23% of revenue driven by new product introductions and second half be below 23%.

We expect operating expenses for the first half to be around 23% of revenue driven by new product introductions and second half be below 23%.

We expect operating expenses of $830 million, plus or minus $10 million.

At the midpoint, the results in a non GAAP operating margin of 37.5%,