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With a market cap of $156.1 billion, Texas Instruments Incorporated (TXN) designs, manufactures, and sells analog and embedded processing semiconductors to electronics designers and manufacturers worldwide. The company serves diverse markets, including industrial, automotive, personal electronics, and communications, through its Analog and Embedded Processing segments.
The Dallas, Texas-based company is slated to announce its fiscal Q3 2025 results after the market closes on Tuesday, Oct. 21. Ahead of the release, analysts predict Texas Instruments to report EPS of $1.47, in line with the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2025, analysts expect the chipmaker to report EPS of $5.60, marking a rise of 7.7% from $5.20 in fiscal 2024. Looking forward, EPS is projected to grow 15.4% year-over-year to $6.46 in fiscal 2026.
Shares of Texas Instruments have decreased nearly 16% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 13.4% gain and the Technology Select Sector SPDR Fund's (XLK) 23.3% increase over the same period.
Despite reporting stronger-than-expected Q2 2025 EPS of $1.41 and revenue of $4.45 billion on Jul. 22, TXN's shares tumbled 13.3% the next day due to a disappointing Q3 outlook. The company projected Q3 EPS between $1.36 and $1.60, with the midpoint ($1.48) falling short of the analyst consensus, and revenue guidance of $4.5 billion to $4.8 billion, below expectations. Management also flagged weak analog chip demand, a shallow automotive recovery, tariff-related supply chain disruptions, and flat gross margin expectations.
Analysts' consensus view on TXN stock remains moderately optimistic, with an overall "Moderate Buy" rating. Out of 35 analysts covering the stock, 14 recommend a "Strong Buy," 17 "Holds," one "Moderate Sell," and three "Strong Sells." This configuration is slightly more bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for Texas Instruments is $209.20, indicating a potential upside of 21.8% from the current levels.
