NXP Semiconductors Reports 6% Drop in Q2 Revenue

NXP Semiconductors, a leading chipmaker, faced a 6% decline in revenue during the second quarter due to challenges in its communications and infrastructure segments amidst market softness.

The company’s second-quarter revenue decreased by 6.4% to $2.93 billion, slightly surpassing analyst predictions of $2.90 billion as per data from LSEG.

NXP’s chips are essential for high-speed digital processing in various sectors like automotive, manufacturing, telecommunications, and the Internet of Things (IoT).

Following the earnings report, the company’s shares dropped by 5% in post-market trading.

In detail, revenue from the communications and infrastructure segment plummeted by 27% to $320 million, while industrial and IoT revenues declined by 11%, and automotive revenue remained steady.

Looking ahead to the third quarter, NXP anticipates revenue to range between $3.05 billion and $3.25 billion, with the midpoint exceeding analysts’ expectations of $3.07 billion.