New York, Feb 3, 2026, 07:27 EST — Premarket
- NXPI slipped around 5% in premarket trading following its Q4 earnings and Q1 outlook
- Sales of communications infrastructure dropped 18% year-on-year in Q4, while automotive remained steady
- Investors are waiting for the 8:00 a.m. EST call to get details on demand and 2026 margins
NXP Semiconductors (NXPI) shares slipped roughly 5% in Tuesday’s premarket session, hovering near $219. The chipmaker’s quarterly outlook and segment breakdown did little to ease investor concerns after its earnings report. (Investing)
The decline is significant since NXP is closely linked to automakers and factory demand—two sectors that have been volatile as clients reduce inventory. The company reported that around 55% of its revenue comes from automotive, with about 18% tied to industrial sales. (Reuters)
The company’s forecast topped Wall Street estimates at the midpoint, yet it still signals a decline from the previous quarter. Traders repeatedly focused on the communications segment, which continues to struggle more than expected.
NXP reported late Monday that its fourth-quarter revenue hit $3.34 billion, with adjusted earnings per share coming in at $3.35. Looking ahead to the first quarter, the company expects revenue between $3.05 billion and $3.25 billion, and adjusted EPS in the range of $2.77 to $3.17. Adjusted figures, also known as non-GAAP, exclude items like acquisition-related charges and stock-based compensation. (Securities and Exchange Commission)
The midpoint suggests roughly 11% growth compared to last year, but a sequential drop of around 6%, according to the company’s guidance table.
Communications Infrastructure & Other revenue dropped 18% year-over-year to $334 million in the fourth quarter. Meanwhile, Automotive revenue increased 5% to $1.88 billion, and Industrial & IoT surged 24% to $640 million, cushioning the impact from the weaker segment.
NXP confirmed it has closed the sale of its MEMS sensors business for $900 million in cash, with an additional $50 million possible based on technical milestones.
In the quarter, cash flow from operations hit $891 million, while free cash flow came in at $793 million. NXP handed back $592 million to shareholders via buybacks and dividends.
The results appeared in a Form 8-K submitted to the U.S. Securities and Exchange Commission on Tuesday. (Securities and Exchange Commission)
On Monday, NXP shares ended the regular session up 2.18% at $231.08. Texas Instruments surged 4.39%, Qualcomm added 0.68%, and Analog Devices climbed 1.92%. This sharp rotation among chip stocks reflects investors reacting swiftly to guidance and signals from end markets. (MarketWatch)
The downside risk still looms for the stock. Should telecom operators continue to postpone spending and auto demand weaken, the drag from communications may persist. Meanwhile, the rebound in industrial orders might take longer to materialize than bulls hope.
Investors face another checkpoint at 8:00 a.m. EST Tuesday, when management holds its earnings call. The company’s calendar pins April 27 for the next earnings report, marking a key date to see if the “bottom” narrative holds. (Nxp)
