Live: Texas Instruments (Nasdaq: TXN) Earnings Preview Coverage

TXN | Texas Instruments Q2’25 Earnings Highlights:

• Adj. EPS: $1.41 ✅; UP +16% YoY
• Revenue: $4.45B [✅]; UP +16% YoY
• Net Income: $1.30B [✅]; UP +15% YoY
• Operating Profit: $1.56B [✅]; UP +25% YoY
• Free Cash Flow: $1.80B; UP +18% YoY
• Dividends Paid: $1.24B; UP +5% YoY
• Stock Repurchases: $0.30B
• Effective Tax Rate: 12.4% (vs. 9.6% YoY)

Q2’25 Outlook:

• Revenue: $4.45B to $4.80B [✅]
  • The outlook reflects continued strength in industrial markets and the impact of recent U.S. tax legislation.
  • Management expects ongoing demand recovery, particularly in the automotive and industrial sectors.
• Adj. EPS: $1.36 to $1.60 [✅]

Q2 Segment Performance:

• Analog Revenue: $3.45B [✅]; UP +18% YoY
• Embedded Processing Revenue: $0.68B [✅]; UP +10% YoY
• Other Revenue: $0.32B [✅]; UP +14% YoY

Other Key Q2 Metrics:

• Adj. Operating Income: $1.56B [✅]; UP +25% YoY
• Adj. Operating Expenses: $1.01B; UP +6% YoY
• R&D Expenses: $0.53B; UP +6% YoY
• Cash and Cash Equivalents: $3.04B; UP +11% YoY
• Total Assets: $34.93B; DOWN -0% YoY
• Total Liabilities: $18.53B; UP +4% YoY
• Stockholders’ Equity: $16.40B; DOWN -5% YoY

CEO Commentary:

• Haviv Ilan: “Revenue increased 9% sequentially, led by continued broad recovery in industrial, and 16% from the same quarter a year ago. Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production.”

Strategic Updates:

• TI continues to focus on expanding its manufacturing capabilities, particularly in 300mm production, to meet growing demand in the industrial and automotive sectors.

Yesterday we were hosting a live blog for NXP Semiconductor, and Texas Instruments looks like a carbon copy. Both companies broadly beat on expectations for last quarter and guided above expectations for the current quarter.

Yet both stocks were immediately down in the 6 to 7% range.

Its like that after a furious rally that’s lasted more than 3 months investors were simply expecting more from these names that have strong tailwinds from themes like AI and the hope of an automotive sector recovery.

Here’s a look at how last quarter compared to a year ago:

Texas Instruments reported strong financial results for Q2 2025, with revenue reaching $4.45 billion, a 16% increase from the same quarter last year, and net income of $1.30 billion.

The company achieved earnings per share of $1.41, surpassing the estimated EPS of $1.33. The revenue growth was driven by a broad recovery in the industrial sector.

The company generated $1.86 billion in operating cash flow and $555 million in free cash flow for the quarter.

Over the past 12 months, Texas Instruments invested significantly in R&D and capital expenditures, while returning $6.7 billion to shareholders. The outlook for Q3 2025 includes revenue between $4.45 billion and $4.80 billion and EPS between $1.36 and $1.60.

CEO Haviv Ilan expressed confidence in the company’s business model and product portfolio, highlighting the benefits of 300mm production.

Q3 2025 Revenue: $4.45B–$4.80B (est. $4.58B)

Q3 EPS: $1.36–$1.60 (est. $1.49)

Earnings at the midpoint are around consensus or slightly below depending on what estimate you’re using. That’s likely what’s causing the immediate share price reaction.

The numbers to know:

Texas Instruments reports Q2 EPS $1.41, consensus $1.33 — Q2 revenue $4.45B, consensus $4.32B.

• Revenue: $4.45 billion (above expectations of $4.32 billion)
• EPS (Normalized): $1.41 (above expectations of $1.33)

Shares are down 8% on the release. Keep this live blog up, we’ll post new updates as we dig into the reaction.

It’s almost 4 p.m., which means Texas Instruments’ (NYSE: TXN) earnings are coming soon.

Last night, NXP Semiconductor disappointed largely due to automotive sales staying depressed. We’ll see if Texas Instruments suffers a similar fate shortly.

The company’s stock is up 15% year-to-date headed into earnings.

TXN has beaten estimates every quarter in the past year and consistently delivered modest but reliable post-earnings gains.