NXP Semiconductors Plunges 6.27% on Revenue Decline

On July 22, 2025, NXP Semiconductors experienced a 6.27% drop in pre-market trading, reflecting investor concerns over the company's recent financial performance and future outlook.

NXP Semiconductors reported a 6% decline in second-quarter revenue, totaling $2.93 billion, which was in line with analysts' estimates. The company's adjusted earnings per share were $2.72, slightly exceeding the expected $2.68. However, the revenue drop was attributed to weakness in the communications and infrastructure segment.

For the third quarter, NXP Semiconductors guided for adjusted per-share profit in the range of $2.89 to $3.30 and revenue of $3.05 billion to $3.25 billion. Despite the midpoint of this range topping analysts' expectations, investors remained cautious due to the continued decline in revenue, though at a slower pace.

The company's shares declined after the forecast failed to impress investors, who were looking for more robust guidance. The revenue decline in the third quarter is expected to continue, albeit at a slower rate, as the company navigates through broader market challenges.