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NXP Semiconductors Forecasts Strong Q1 Revenue
3 Feb
Summary
- NXP forecasts first-quarter revenue above estimates, driven by auto and industrial markets.
- Company CEO notes effective execution and strategic priorities in software-defined vehicles.
- Communication unit revenue fell 18% in Q4, signaling telecom sector spending slowdown.
NXP Semiconductors has announced its first-quarter revenue forecast, which is expected to exceed market expectations. This positive outlook is primarily fueled by continued robust demand within the automotive sector and steady performance in industrial markets.
Despite facing a challenging first half of 2025, NXP's President and CEO, Rafael Sotomayor, stated that the company executed effectively. He emphasized advancing strategic priorities, including software-defined vehicles and physical AI, while maintaining operational discipline.
While the company anticipates strong overall performance, its communication unit experienced an 18% revenue decrease in the fourth quarter. This decline indicates a potential slowdown in spending by telecom operators, a factor that may influence future performance in that segment.
For the first quarter, NXP projects revenue between $3.05 billion and $3.25 billion, with adjusted earnings per share forecasted to be between $2.77 and $3.17. These figures indicate a mid-point expectation that surpasses current analyst estimates.
