NXP Semiconductors on Monday said it expects first-quarter revenue to come in between $3.05 billion and $3.25 billion, a range whose midpoint sits above analysts' average projection of $3.10 billion compiled by LSEG. The company signaled that resilient demand from the automotive sector and continued industrial requirements underlie the stronger-than-expected outlook.
In a prepared comment, Rafael Sotomayor, NXP President and Chief Executive Officer, highlighted the company's recent execution:
"Throughout 2025, we executed effectively despite a challenging first half, maintaining operational discipline while advancing our strategic priorities in software-defined vehicles and physical AI,"
NXP reported fourth-quarter revenue of $3.34 billion, slightly above consensus of $3.31 billion. Adjusted earnings for the quarter were $3.35 per share, compared with analyst expectations of $3.27 per share.
For the current quarter, the chipmaker provided a range for adjusted earnings per share of $2.77 to $3.17, with a midpoint of $2.97. That midpoint is above the $2.90 per-share estimate tracked by analysts.
The company noted a divergence across its end markets. Roughly 55% of NXP's revenue comes from the automotive end market and roughly 18% from the industrial end market, reflecting the firm's exposure to vehicle electronics and factory automation. By contrast, the firm's communication unit experienced a decline during the quarter, with revenue falling 18% in the fourth quarter, a sign of weaker spending by telecom operators.
Despite the upbeat guidance and quarterly beat on both revenue and adjusted EPS, NXP's shares fell about 5% in extended trading after the results were released.
Investment tools and advisory products referenced alongside the company's update evaluated NXPI among many stocks using a range of financial metrics and machine-driven screening. One such product described its approach as assessing fundamentals, momentum and valuation without bias and cited past notable winners including Super Micro Computer (+185%) and AppLovin (+157%).
Investors and market participants will watch incoming data and NXP's execution in software-defined vehicles and physical AI initiatives, while also monitoring telecom operator spending that has pressured the communications unit.