NXP Semiconductors N.V. delivered fourth-quarter results that surpassed expectations and offered strong guidance for the current quarter, but investors were nonplussed and its stock fell in extended trading.
The Dutch chipmaker reported earnings before certain costs such as stock compensation of $3.35 per share, surpassing Wall Street’s target of $3.31. Revenue for the period rose 7% from a year earlier, to $3.34 billion, also coming in ahead of the analyst consensus estimate of $3.31 billion.
All told, NXP delivered a net profit of $455 million in the quarter, down slightly from the $495 million profit it recorded one year earlier.
NXP Chief Executive Rafael Sotomayor (pictured) said the company is benefiting from an improved demand environment, and completed two key acquisitions during the quarter, to strengthen its portfolio and drive further growth. He was referring to the company’s earlier deals to buy the neural processing unit startup Kinara Inc. and the automotive connectivity systems maker Aviva Links Inc., which were announced last year.
“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,” he said. “Through strategic acquisitions we strengthened our portfolio to drive leadership in intelligent systems at the edge for automotive, industrial and IoT. These actions, combined with an improving demand environment, position NXP for profitable revenue growth.”
For the first quarter, NXP said it’s anticipating sales of $3.15 billion at the midpoint of its guidance range, ahead of the $3.10 billion analyst forecast. It’s also looking for earnings of $2.97 per share at the midpoint, above the Street’s $2.95 per share forecast.
Despite the positive numbers, NXP’s stock declined more than 4% in late trading. Investors may have been disappointed by the pedestrian growth in NXP’s primary automotive segment, where revenue came to $1.88 billion, up 4% from a year ago but only in line with the Street’s consensus estimate.
NXP’s Mobile and Communications, Infrastructure and Other segments were the best performers during the quarter. The former unit generated $485 million in revenue compared with the $452.58 million analyst estimate, up 22% from a year earlier. The latter delivered $334 million in sales, above the $327.5 million forecast, but down 18% from a year earlier. NXP’s fourth major segment, Industrial & IoT, delivered $640 million in sales, up 24% and just ahead of the $639.1 million forecast.
In addition to completing the two acquisitions, NXP also finalized the sale of its MEMS sensors business, which was offloaded to STMicroelectronics Inc. for $900 million in cash.
The company plans to hold its quarterly analyst call Tuesday morning.
Photo: NXP
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About News Media
Founded by tech visionaries John Furrier and Dave Vellante, News Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
