Texas Instruments (NASDAQ:TXN) is scheduled to announce its earnings results for the third quarter on Tuesday, October 21st, after market close.
Wall street expects the chipmaker to post earnings of $1.48 per share on revenue of $4.64 billion, representing an 11.8% increase from a year earlier.
Analyst Michael Del Monte said Texas Instruments “has a large market opportunity as significant investments are made for U.S. reindustrialization and data center developments, driving the need for expansive investments for power transmission and distribution,” adding that the company is well positioned to benefit from “three megatrends – data center development, electrification and grid modernization, and reindustrialization and industrial automation.”
Earlier this month, the Dallas based semiconductor company raised its quarterly dividend by 4.4% to $1.42 per share, payable November 12 to shareholders of record as of October 31.
However, the stock is down -0.56% over the past month and dipped -4.24% year-to-date.
At a recent investor conference, CFO Rafael Lizardi said demand cooled after an April spike tied to pre-tariff orders, noting that higher capital expenditures continue to pressure free cash flow. He added that Texas Instruments has not been approached about a potential U.S. government equity stake under the CHIPS Act.
Mizuho Securities has recently downgraded Texas Instruments (NASDAQ:TXN) to Underperform from Neutral and cut its price target to $150 from $200, citing softening auto demand, China-related risks, and limited AI exposure. The firm warned that “China for China” policies and potential anti-dumping tariffs could weigh on TI’s market share, while its premium valuation and lack of near-term catalysts justify caution.
According to Wells Fargo, expectations for analog semiconductor stocks remain low ahead of earnings, with “little enthusiasm” among investors given multiple false starts in the recovery cycle and continued macro and tariff uncertainty. The brokerage noted that stable gross margins and “in line to slightly better” December-quarter revenue guidance could be viewed as “better than feared,” adding that industrial demand trends are holding up better than automotive.
While estimates point to steady results, Texas Instruments has consistently delivered earnings above expectations.
In the past three months, analysts have made 7 upward and 10 downward revisions to EPS forecasts, while revenue estimates have seen 20 upward and 8 downward adjustments, reflecting mixed sentiment on near-term demand trends.