NXP Semiconductors Reports 6% Revenue Drop in Q2

Chipmaker NXP Semiconductors reported a 6% decline in second-quarter revenue on Monday due to a decrease in the communication and infrastructure segment amid market challenges.

The revenue for the second quarter dropped by 6.4% to $2.93 billion, slightly exceeding analysts’ expectations of $2.90 billion as per LSEG data.

NXP’s semiconductors play a crucial role in high-speed digital processing across various industries like automotive, manufacturing, telecommunications, and the Internet of Things (IoT).

The company’s shares dropped by 5% in post-market trading. Revenue from the communication and infrastructure division plunged by 27% to $320 million during the quarter. Industrial and IoT revenue witnessed an 11% decline, while the automotive section remained stable.

Looking ahead to the third quarter, NXP anticipates revenue ranging between $3.05 billion and $3.25 billion, with the midpoint surpassing analysts’ projections of $3.07 billion.