NXP Semiconductors NV's stock experienced a sharp pre-market plunge of 5.66% during Tuesday's trading session. The significant drop followed the release of the company's latest financial results.

Despite reporting fourth-quarter earnings and revenue that exceeded analyst estimates, investors reacted negatively to the company's forward-looking statements. NXP provided first-quarter earnings guidance ranging between $2.77 and $3.17 per share, which created uncertainty compared to Wall Street's expectations of approximately $2.95 per share.

Additional concerns contributing to the sell-off included disappointing growth in NXP's automotive segment, which represents over half of the company's revenue. The segment's 4.8% increase fell short of market expectations, highlighting ongoing worries about the pace of recovery in the automotive chip market. Furthermore, the company's full-year 2025 revenue showed a 2.7% decline year-over-year, adding to investor apprehension despite positive near-term guidance.