NXP Q2 Revenue Drops 6.4% to $2.93 Billion

According to reports, NXP Semiconductors reported a 6.4% year-over-year revenue decline for the second quarter of 2025, reaching $2.93 billion, slightly surpassing analyst expectations of $2.9 billion, according to data compiled by the London Stock Exchange. Earnings per share stood at $2.72, higher than the forecasted $2.68.

The company, known for its high-performance chips in automotive, industrial, telecommunications, and IoT applications, saw significant weakness in its Communications and Infrastructure division, where revenue dropped 27% to $320 million. The Industrial & IoT segment also declined by 11%, while revenue from the Automotive segment remained flat.

Despite these challenges, NXP forecasts third-quarter revenue between $3.05 billion and $3.25 billion, with the midpoint exceeding the market expectation of $3.07 billion.

NXP remains heavily reliant on the automotive sector, which contributes over half of its total revenue. The company continues to navigate headwinds from global supply chain disruptions, partly triggered by tariffs implemented during former U.S. President Donald Trump's administration, which created uncertainty in customer demand.

CEO Kurt Sievers noted earlier that Q2 was expected to mark a "turning point" as customer orders stabilize. Like other industry players, NXP is contending with a persistent chip supply glut in the electric vehicle and manufacturing sectors, especially as EV demand outside China continues to slow — a trend that has weighed on sales for over 18 months.