Texas Instruments Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Revenue Performance: Texas Instruments reported Q4 revenue of $4.4 billion, reflecting a 7% sequential decline but a 10% year-over-year increase, indicating stability amid market fluctuations.
- Market Reorganization: The company has reclassified its key markets to include industrial, automotive, data center, personal electronics, and communications equipment, with data center revenue growing 64% year-over-year, highlighting its significance for future growth.
- Profitability Metrics: Gross profit for the quarter was $2.5 billion, representing 56% of revenue, although gross margin decreased by 150 basis points sequentially, operating profit increased by 7% year-over-year, showcasing effective cost control.
- Cash Flow and Shareholder Returns: Operating cash flow was $2.3 billion with capital expenditures of $925 million, and the company raised its dividend per share by 4% to $1.42, marking its 22nd consecutive year of dividend increases, demonstrating a commitment to shareholder returns.
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: 196.590
Low
125.00
Averages
193.53
High
245.00
Current: 196.590
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.
