Feb 2 (Reuters) - NXP Semiconductors ( NXPI ) on Monday forecast first-quarter revenue above Wall Street estimates, anticipating a robust automotive market and consistent industrial demand.

The supplier of microcontrollers and radar sensors ‌is benefiting from increased demand for its secure connectivity chips, ​which are critical components in modern vehicles and factory ‍automation systems.

"Throughout 2025, we executed effectively ⁠despite a ⁠challenging first half, maintaining operational discipline while advancing our strategic priorities ‌in software-defined vehicles and ​physical AI," said Rafael Sotomayor, NXP President and Chief Executive Officer.

NXP derives roughly 55% ⁠of sales from the ‍automotive ​end market and roughly 18% of sales from the industrial end market.

However, shares of the company ‍fell around 5% in extended trading. Revenue in the firm's communication unit fell 18% in the fourth quarter, pointing to sluggish spending by telecom operators.

NXP expects revenue to be between $3.05 billion and $3.25 ​billion ‍for the first quarter, the midpoint of which is above analysts' average estimate of $3.10 ​billion, according to data compiled by LSEG.

The company forecast quarterly adjusted earnings per share of between $2.77 and $3.17, with a midpoint of $2.97, above estimates of $2.90 per share.

It posted revenue of $3.34 billion for the fourth quarter, compared with the ​estimates of $3.31 billion. Its adjusted earnings of $3.35 per share were above analysts' expectations of $3.27.