NXP Semiconductors’ Q1 revenue set to slide further

NXP Semiconductors NV (NASDAQ: NXPI) will report first-quarter earnings on Monday, April 28, as the Dutch chipmaker grapples with a deepening slowdown in demand from its core automotive customers.
After a difficult 2024 marked by excess inventory and tepid electric vehicle sales, NXP reported a -5% year-on-year revenue decline to $1.7 billion. The only bright spot was its Mobile division, which grew +13% even as all other segments faltered.

The outlook for the first quarter of 2025 points to further weakness. Visible Alpha consensus shows analysts expect Q1 revenues to fall -10% year-on-year, with Communication Infrastructure & Other—accounting for 10% of total sales—forecast to decline by -26%. Industrial & IoT, which makes up 18% of revenues, is expected to contract by -11%, while the Mobile segment is estimated to dip -7%. Automotive, NXP’s largest segment at 60% of total revenue, is projected to see revenue decline -6%. Profitability is also under pressure. GAAP net income for the quarter is expected to drop -25% to $480 million.

While the tariff impact on NXP is expected to be low given the company’s globally diverse manufacturing footprint, analysts expect full-year revenue to contract further in 2025 before a potential recovery in 2026.