Lower turnover for NXP, but signs of recovery

Chip manufacturer NXP Semiconductors reported lower revenue and profits in 2025, following a year marked by economic uncertainty and geopolitical tensions. At the same time, the technology company is showing clear signs of recovery, with cautiously optimistic expectations for early 2026.

Total revenue amounted to $12.3 billion (approximately €10.4 billion), a decrease of 3 percent compared to 2024. Net profit fell more sharply: from $2.5 billion a year earlier to $2 billion in 2025.

CEO Rafael Sotomayor nevertheless speaks of a solid performance in challenging market conditions. According to him, the company managed to “maintain operational discipline” while continuing to invest in strategic growth areas such as software-defined vehicles and physical AI.

Recovery in the second half

After a difficult start to the year—in which NXP warned of “highly uncertain” conditions due to unrest surrounding US import tariffs—demand gradually improved. The market picked up particularly in the second half of the year. This recovery became apparent in the fourth quarter. Revenue rose to $3.34 billion.

NXP benefited from growth in mobile applications and industrial IoT solutions, among other things, while demand from communications infrastructure remained under pressure.

Strategic steps

In 2025, the company made a concerted effort to strengthen its portfolio. NXP completed the acquisitions of Aviva Links and Kinara, together worth more than $550 million, and sold its MEMS sensor division for $900 million in early 2026. These transactions are intended to sharpen the focus on markets with higher growth potential.

In addition, NXP technology was applied in medical delivery drones, and the company introduced new processors for AI-driven applications, such as driver monitoring and sensor technology in vehicles.

Outlook

For the first quarter of 2026, NXP expects revenue between $3.05 billion and $3.25 billion, indicating further stabilization of demand. However, the company emphasizes that forecasts remain uncertain due to fluctuations in the semiconductor industry and global trade risks.