NXP Q4 2025 Revenue Beats Expectations

According to Reuters, NXP Semiconductors reported $3.34 billion in total revenue for Q4 2025, with an adjusted operating margin of 34.6%. While automotive revenue growth slightly missed expectations, the company's Q1 2026 revenue outlook is above market forecasts, reflecting continued strength in automotive and industrial demand.

NXP President and CEO Rafael Sotomayor highlighted that, despite challenges in the first half of 2025, the company successfully advanced its strategic initiatives in software-defined vehicles (SDV) and edge AI through disciplined execution. Bloomberg reports that Q4 automotive revenue reached $1.88 billion, up 4.8% year-over-year, though slightly below market expectations. NXP projects Q1 2026 revenue between $3.05 billion and $3.25 billion, with the midpoint exceeding the market consensus of $3.09 billion.

Automotive end markets account for about 55% of NXP's revenue, while industrial markets contribute roughly 18%. Like STMicroelectronics and Texas Instruments, NXP has faced challenges from post-pandemic chip oversupply, as automotive and consumer electronics customers stockpiled chips during COVID-19, leaving the industry with excess inventory. Tariffs implemented during the Trump administration also delayed market recovery.

Sotomayor noted that the oversupply situation may be easing, with automotive demand picking up and showing signs of cyclical recovery. Similarly, STMicroelectronics recently reported Q1 revenue above expectations, driven by a rebound in consumer electronics demand, although CEO Jean-Marc Chery cautioned that the automotive market has yet to fully stabilize.