July 22, 2025 /SemiMedia/ — NXP Semiconductors reported a 6.4% year-over-year decline in second-quarter revenue to $2.93 billion, slightly beating analysts’ estimates of $2.9 billion. Earnings per share came in at $2.72, above the expected $2.68, as the company maintained stable performance in its core automotive segment amid broader market weakness.

The communications and infrastructure business saw a steep 27% revenue decline to $320 million, while the industrial and IoT segment dropped 11%. Automotive revenue, which contributes over half of NXP’s total, remained flat but served as a key buffer against softness in other areas.

NXP’s chips are widely used in high-speed digital processing across automotive, industrial, telecommunications, and IoT applications. CEO Kurt Sievers previously indicated that Q2 may mark a “turning point” as customer orders begin to stabilize after months of oversupply and uncertainty in global demand.

The company forecasts third-quarter revenue in the range of $3.05 billion to $3.25 billion, with the midpoint slightly exceeding consensus estimates. Despite challenges from tariffs and weaker EV demand outside China, NXP is positioning itself to adapt through strategic product and customer alignment.