Eindhoven, Netherlands, Feb 3, 2026, 14:09 CET
- NXP forecast first-quarter revenue above estimates, pointing to firmer demand in autos and industry.
- Shares fell about 5% after hours after an 18% drop in its communications infrastructure unit.
- Fourth-quarter revenue and adjusted profit topped expectations, helped by strength in automotive chips.
NXP Semiconductors forecast first-quarter revenue above Wall Street estimates, adding to talk that the industrial-chip downturn may be nearing a floor. Its shares still slipped in after-hours U.S. trading as telecom-related weakness lingered. Reuters
The outlook matters because investors have been hunting for a clean signal that factory and automation spending is turning, after a choppy stretch. NXP is exposed to that cycle, and its guidance is one of the first big reads for early 2026 demand. Investing
NXP gets about 55% of its sales from automotive and roughly 18% from industrial, the company said. It sells microcontrollers — small chips that act as a device’s control unit — and radar sensors used in vehicles, along with connectivity chips used in cars and in factory gear.
For the first quarter, NXP said it expects revenue of $3.05 billion to $3.25 billion. The midpoint of $3.15 billion is above analysts’ average estimate of $3.10 billion, according to LSEG data cited by Reuters.
The company also forecast adjusted earnings per share — a measure that strips out certain items — of $2.77 to $3.17. That range implies a midpoint of $2.97, compared with an estimate of $2.90, the Reuters report said.
Shares fell about 5% in extended trading. One pressure point was the communications business: revenue in that unit slid 18% in the fourth quarter, a sign telecom operators are still holding back on spending.
NXP reported fourth-quarter revenue of $3.34 billion, edging past estimates of $3.31 billion. Adjusted profit was $3.35 per share, compared with expectations of $3.27, Reuters said.
In the quarter, automotive revenue was $1.88 billion, while industrial and IoT brought in $640 million, the company’s release showed. Communications infrastructure and other revenue was $334 million, down 18% from a year earlier.
Chief executive Rafael Sotomayor said the first half of 2025 was “challenging,” but pointed to an “improving demand environment” as the company pushes further into software-defined vehicles. It also flagged “physical AI,” a catch-all for AI tied to sensors and machines in the real world.
NXP generated $793 million in non-GAAP free cash flow in the fourth quarter, or about 24% of revenue, it said. It returned $592 million to shareholders in the period, including $338 million of buybacks and $254 million in dividends. Globenewswire
The company also said it completed the sale of its MEMS sensors business line for $900 million in cash, with up to $50 million more tied to technical milestones. MEMS sensors are tiny devices that can detect motion, pressure or other physical changes.
In automotive and industrial semiconductors, NXP competes with Texas Instruments, Infineon and STMicroelectronics, among others. Investors tend to stack their outlooks side-by-side, because the same car and factory customers often show up across the group.
But the mixed read in telecom shows parts of the market are still soft, and NXP cautioned its forecast rests on management estimates that can shift with demand. Channel inventory — stock sitting with distributors — was 10 weeks at quarter-end, according to the company’s release.
