Texas Instruments Q4 2025 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Revenue Growth: Texas Instruments reported a 10% year-over-year revenue increase to $4.42 billion in Q4, slightly missing the analyst consensus of $4.45 billion, yet demonstrating resilience in the market.
- Earnings Performance: The diluted earnings per share fell 2% to $1.27, missing the expected $1.29 due to unexpected charges related to goodwill impairment and tax items, indicating potential volatility in earnings.
- Surge in Data Center Orders: Data center orders skyrocketed by 70% year-over-year, highlighting rapid expansion in this segment, which is expected to drive future performance and warrant its own financial commentary.
- Manufacturing Advantage: Texas Instruments' in-house manufacturing capabilities in Texas and Utah allow it to maintain high production volumes amid global chip shortages, enhancing its competitive edge in the data center market.
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Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TXN is 193.53 USD with a low forecast of 125.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 216.170
Low
125.00
Averages
193.53
High
245.00
Current: 216.170
Low
125.00
Averages
193.53
High
245.00
About TXN
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets, such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, and others. Signal Chain includes products that sense, condition, and measure real-world signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs) and applications processors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Texas Instruments Stock Rises as Analysts Raise Price Targets
- Quarterly Performance: Texas Instruments reported fourth-quarter revenue of $4.42 billion, slightly below the expected $4.44 billion but reflecting a 10% year-over-year increase, which alleviates investor concerns about demand stability.
- Guidance Outlook: The company projected first-quarter revenue between $4.32 billion and $4.68 billion, exceeding market expectations of $4.42 billion, indicating management's increased confidence in future demand, potentially driving further stock price gains.
- Analyst Rating Upgrades: Analysts from Cantor Fitzgerald, Benchmark, and Rosenblatt raised Texas Instruments' price targets, with the highest increase from $190 to $250, reflecting optimistic market sentiment regarding the company's growth potential.
- Signs of Industry Recovery: Analysts highlighted a rebound in demand from industrial and data center sectors, particularly noting a 70% year-over-year growth in data center revenue, which is expected to support sustained growth for the company in the coming quarters and strengthen its market position.
Continue Reading
Texas Instruments Q4 2025 Earnings Analysis
- Revenue Growth: Texas Instruments reported a 10% year-over-year revenue increase to $4.42 billion in Q4, slightly missing the analyst consensus of $4.45 billion, yet demonstrating resilience in the market.
- Earnings Performance: The diluted earnings per share fell 2% to $1.27, missing the expected $1.29 due to unexpected charges related to goodwill impairment and tax items, indicating potential volatility in earnings.
- Surge in Data Center Orders: Data center orders skyrocketed by 70% year-over-year, highlighting rapid expansion in this segment, which is expected to drive future performance and warrant its own financial commentary.
- Manufacturing Advantage: Texas Instruments' in-house manufacturing capabilities in Texas and Utah allow it to maintain high production volumes amid global chip shortages, enhancing its competitive edge in the data center market.
Continue Reading