Texas Instruments Inc (NYSE:TXN) reported financial results for the third quarter after the market close on Tuesday. Here’s a look at the key metrics from the print.TXN shares are sliding on disappointing news. Watch the momentum hereQ3 Highlights: Texas Instruments reported third-quarter revenue of $4.74 billion, beating analyst estimates of $4.65 billion. The company reported third-quarter earnings of $1.48 per share, narrowly missing analyst estimates of $1.49 per share, according to Benzinga Pro.Total r ...

The Dallas-based semiconductor company posted a profit of $1.36 billion, roughly comparable to the year-ago period. ...

China represents about 19% of overall sales for the chip maker, according to FactSet. ...

Industry Trend - Chip industry recovery is sputtering [1] Company Performance - Texas Instruments, the biggest maker of analog chips, gave a lackluster forecast for the current period [1]

Financial Performance - Revenue for Q3 2025 was $4.74 billion, a 14% increase from $4.15 billion in Q3 2024[4] - Net income for Q3 2025 was $1.36 billion, slightly up from $1.36 billion in Q3 2024[4] - Earnings per share for Q3 2025 were $1.48, a 1% increase from $1.47 in Q3 2024[4] - Revenue for the twelve months ended September 30, 2025, reached $17,266 million, up from $15,711 million in 2024[18] Cash Flow and Shareholder Returns - Cash flow from operations for the trailing 12 months was $6.9 billion, with free cash flow at $2.4 billion[2] - Total cash returned to shareholders in the trailing 12 months was $6.56 billion, a 26% increase from $5.19 billion[6] - Dividends paid in Q3 2025 amounted to $1.24 billion, with stock repurchases totaling $119 million, reflecting a 253% increase from the previous year[6] - Cash flow from operations for the three months ended September 30, 2025, was $2,190 million, a 10% increase compared to $2,000 million for the same period in 2024[18] - Free cash flow (non-GAAP) for the twelve months ended September 30, 2025, was $2,415 million, representing a 65% increase from $1,468 million in the previous year[18] - Free cash flow as a percentage of revenue was 14.0%, up from 9.3% in the previous year[5] - Cash flow from operations as a percentage of revenue (GAAP) was 39.9% for the twelve months ended September 30, 2025, compared to 39.7% in 2024[18] - Free cash flow as a percentage of revenue (non-GAAP) increased to 14.0% for the twelve months ended September 30, 2025, from 9.3% in 2024[18] Future Outlook - TI's fourth quarter revenue outlook is projected to be between $4.22 billion and $4.58 billion, with earnings per share guidance of $1.13 to $1.39[2] Segment Performance - Analog segment revenue increased by 16% to $3.73 billion, while Embedded Processing revenue grew by 9% to $709 million[15] Investments and Incentives - R&D and SG&A investments over the past 12 months totaled $3.9 billion, with capital expenditures at $4.8 billion[2] - Proceeds from CHIPS Act incentives amounted to $75 million for the three months ended September 30, 2025, and $335 million for the twelve months ended September 30, 2025[18] Market and Operational Insights - The company emphasizes the importance of market demand for semiconductors, particularly in the industrial and automotive sectors, as a key factor influencing future performance[22] - The company is focused on developing innovative products and implementing new manufacturing technologies to maintain competitiveness in a rapidly changing technological environment[22] - The company acknowledges risks related to global trade policies and economic conditions that could impact its operations and market demand[22] - Texas Instruments is committed to making electronics more affordable through semiconductors, aiming for continuous innovation and improvement in technology[23]

Core Insights - Texas Instruments Incorporated (TI) reported third quarter revenue of $4.74 billion, net income of $1.36 billion, and earnings per share of $1.48, which included a 10-cent reduction not in the original guidance [1][3][6] - The company experienced a 14% year-over-year revenue increase, with growth across all end markets [6][10] - TI's fourth quarter outlook projects revenue between $4.22 billion and $4.58 billion and earnings per share between $1.13 and $1.39 [6] Financial Performance - Revenue for Q3 2025 was $4,742 million, up from $4,151 million in Q3 2024, reflecting a 14% increase [3] - Operating profit increased by 7% to $1,663 million compared to $1,554 million in the same quarter last year [3] - Net income remained stable at $1,364 million, slightly up from $1,362 million year-over-year [3] Cash Flow and Returns - Cash flow from operations for the trailing 12 months was $6.9 billion, with free cash flow at $2.4 billion [6][11] - Free cash flow as a percentage of revenue increased to 14.0% from 9.3% year-over-year [4][12] - Total cash returned to shareholders was $6.56 billion, which includes $4.949 billion in dividends and $1.611 billion in stock repurchases [5][6] Segment Performance - Analog segment revenue reached $3,729 million, a 16% increase from $3,223 million in Q3 2024 [10] - Embedded Processing segment revenue grew by 9% to $709 million, while operating profit slightly decreased by 1% [10] - Other segment revenue increased by 11% to $304 million, but operating profit fell by 47% [10] Investment and R&D - TI invested $3.9 billion in research and development and selling, general, and administrative expenses over the past 12 months [6] - Capital expenditures for the same period totaled $4.8 billion [6]

Core Insights - Texas Instruments (TXN) has underperformed in the semiconductor sector, with a decline of approximately 8.2% this year, while the semiconductor ETF (SMH) has increased by about 37% [1][2] - TXN focuses on stable, reliable chips for industrial and automotive markets, differentiating it from high-end computer chip companies like Nvidia and Intel [2][3] Market Trends - The semiconductor sector shows varied performance, indicating that not all companies are equally positioned within the industry [3] - A falling wedge pattern has been observed in TXN's price action since reaching highs near 221, with key support levels identified between 172 and 175 [3][4] Technical Analysis - The price has recently bounced back to the middle of the trading range, with resistance noted around 187 and a significant trading area near 185 [4][6] - The RSI is nearing a bullish crossover, which could indicate a shift in momentum [5][6] Trading Strategy - An example trade strategy involves buying a call option at the 180 strike price and selling a call option at the 190 strike price, creating a bullish $10 wide call diagonal [9][10] - The trade anticipates a rebound, with a break-even point above 182, which is slightly over 1% above the current share price [12][13] - The strategy leverages implied volatility differences, with the October 31st weekly 180 call at 59% and the October 24th 190 call at 82% [10][12]

Texas Instruments Incorporated (NASDAQ:TXN) will release earnings results for the third quarter, after the closing bell on Tuesday, Oct. 21.Analysts expect the Dallas, Texas-based company to report quarterly earnings at $1.49 per share, up from $1.47 per share in the year-ago period. The consensus estimate for Texas Instruments' quarterly revenue is $4.64 billion, compared to $4.15 billion a year earlier, according to data from Benzinga Pro.On Oct. 16, Texas Instruments named CEO Haviv Ilan to additional ro ...

Market Overview - US stock index futures showed mixed movements with Dow futures up 0.08% and S&P 500 futures up 0.03%, while Nasdaq futures fell 0.05% [1] - European indices also experienced gains, with Germany's DAX up 0.17%, UK's FTSE 100 up 0.30%, France's CAC40 up 0.55%, and the Euro Stoxx 50 up 0.26% [2][3] - WTI crude oil rose by 0.79% to $57.47 per barrel, and Brent crude oil increased by 0.67% to $61.42 per barrel [3][4] Market Sentiment - The recent rebound in US stocks is attributed to short covering rather than genuine investor confidence, indicating a potential "false prosperity" [5] - Concerns about the US credit market tightening could lead to forced selling by pension funds, which may trigger a significant market downturn [5] - Allianz's chief economist noted that the current AI investment boom is a "rational bubble" that could help the US outperform global markets [5] Federal Reserve Insights - Wall Street analysts predict that the Federal Reserve may announce the end of its balance sheet reduction plan in the upcoming meeting, which could stabilize monetary policy [6] - Recent market fluctuations have led to increased use of the Fed's repurchase agreement tool, indicating liquidity concerns [6] Individual Company Performance - General Motors (GM) reported Q3 revenue of $48.59 billion, exceeding expectations of $45.26 billion, and raised its full-year EPS guidance to $9.75-$10.50 [7][8] - Coca-Cola (KO) posted Q3 revenue of $12.46 billion, surpassing the expected $12.41 billion, and reaffirmed its 2025 guidance [8] - GE Aerospace's Q3 revenue increased by 24% to $12.18 billion, driven by strong performance in its commercial engine business [8] - Zion Bank's Q3 profit exceeded expectations, with revenue of $872 million, indicating that credit pressure in regional banks may be isolated incidents [8] - DocGo's stock surged nearly 27% following its acquisition of virtual healthcare platform SteadyMD [8] Upcoming Earnings Reports - Notable earnings reports expected include Netflix, Texas Instruments, and Alliance West Bank on Wednesday morning, and Barclays, Teck Resources, and AT&T before market open [10]

Core Viewpoint - Arrow Electronics has been removed from the U.S. Entity List by the Bureau of Industry and Security (BIS), which is expected to impact the semiconductor distribution market positively, particularly for Texas Instruments (TI) [5][10]. Group 1: Events Leading to Removal - On October 8, 2023, BIS placed Arrow Electronics' subsidiaries in mainland China and Hong Kong on the Entity List due to their involvement in procuring U.S. electronic components for organizations in Iran [9]. - The removal notification from BIS indicates that several Arrow Electronics subsidiaries, including Arrow China Electronics Trading Co., Ltd., have been cleared from the Entity List [6][8]. - A temporary authorization was granted by BIS, allowing Arrow Electronics and its partners to maintain trade of specific controlled items until February 14, 2026, or until the official removal notice is published [7]. Group 2: Market Impact - The removal of Arrow Electronics from the Entity List has led to increased demand for TI products, as Arrow was previously a significant distributor for TI [10]. - Following the removal announcement, there was a notable increase in the prices of TI components, although some market participants reported mixed feelings about price changes [11]. - The market has shown signs of becoming more cautious, with customers adopting a wait-and-see approach after the initial surge in demand [11].