Mizuho Maintains ‘Underperform’ on Texas Instruments (TXN) After Q3 Earnings

Core Insights - Texas Instruments Incorporated (NASDAQ:TXN) is recognized as one of the 15 Best DRIP Stocks to Own Right Now [1] - Mizuho has maintained an 'Underperform' rating on Texas Instruments, lowering its price target from $150 to $145 after the Q3 earnings report, citing an inflated stock valuation [2] - Texas Instruments reported a 14% year-over-year revenue increase to $4.74 billion for Q3 2025, with growth across all major end markets [3] - The company achieved an operating cash flow of $6.9 billion over the past 12 months, indicating a strong business model and efficient production operations [3] - Texas Instruments invested $3.9 billion in R&D and SG&A, $4.8 billion on capital projects, and returned $6.6 billion to shareholders over the past year [4] Financial Performance - Q3 2025 revenue reached $4.74 billion, reflecting a 14% increase year-over-year [3] - Operating cash flow for the last 12 months was $6.9 billion, showcasing the company's operational strength [3] - Free cash flow for the same period was reported at $2.4 billion [3] Investment and Returns - The company invested $3.9 billion in research and development and selling, general, and administrative expenses [4] - Capital expenditures amounted to $4.8 billion [4] - Texas Instruments returned $6.6 billion to shareholders, highlighting its commitment to shareholder value [4]