NXP Semiconductors - upbeat quarter
In the fourth quarter, NXP reported revenue of $3.34bn
NXP Semiconductors said on Monday it expects first-quarter revenue to come in above market expectations, citing continued strength in the automotive sector and steady demand from industrial customers.
The chipmaker, which supplies microcontrollers and radar sensors, is seeing growing demand for its secure connectivity products used in modern vehicles and factory automation. Automotive applications account for around 55% of NXP’s sales, while the industrial segment contributes approximately 18%.
“Throughout 2025, we executed effectively despite a challenging first half, maintaining strong operational discipline while continuing to advance our strategic priorities in software-defined vehicles and physical AI,” said president and chief executive Rafael Sotomayor.
Despite the upbeat outlook, NXP shares fell about 5% in extended trading, weighed down by weakness in its communications business. Revenue in that unit declined 18% in the fourth quarter, reflecting subdued investment by telecom operators.
For the first quarter, NXP forecast revenue of between $3.05bn and $3.25bn, with the midpoint exceeding analysts’ average estimate of $3.10bn, according to LSEG data. The company also guided to adjusted earnings per share of $2.77 to $3.17, above consensus expectations.
In the fourth quarter, NXP reported revenue of $3.34bn, slightly ahead of forecasts, while adjusted earnings of $3.35 per share also beat analyst estimates.
Project News