Shares of Texas Instruments Inc (NASDAQ:TXN) spiked in early trading on Wednesday, after the company reported its third-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
Check out other analyst stock ratings.
BofA Securities: "We don’t yet see the lift-off in TXN sales growth," Arya said in a note. He added that rising depreciation creates a headwind for the company's gross margins in 2025. That doesn’t appear to be “fully captured” in consensus estimates.
Texas Instruments provided "sluggish" guidance for the fourth quarter. However, the stock rose in after-hours trading on expectations of an end to inventory correction, the analyst stated. "On the positive side, TXN continues to build a comprehensive manufacturing footprint that could provide low-cost capacity in next upcycle," he further wrote.
JPMorgan: Texas Instruments delivered a beat on revenues, margins and earnings for the third quarter, "reflecting gradually improving cyclical trends," Sur said. All regions except EMEA (Europe, the Middle East and Africa) grew sequentially in the quarter, he added.
Management guided to a 7% sequential contraction in sales, missing consensus, the analyst stated. "We believe the outlook reflects gradually improving cyclical trends albeit at a slower pace given the more muted demand trends in industrial/auto end markets," he further wrote.
Benchmark: Texas Instruments delivered better-than-expected results for the third quarter. But, fourth-quarter guidance for both revenue and profit missed expectations, Acree said in a note. Investors reacted positively, as they were bracing for an even more conservative outlook, "following disappointing recent news out of much of the automotive sector.”
Rosenblatt Securities: Texas Instruments guided to fourth-quarter revenues in the range of $3.7 billion to $4 billion. It missed the consensus of $4.1 billion at the midpoint, Mosesmann said. The company projected earnings of $1.18 per share at the midpoint. That’s lower than the consensus estimate of $1.36 per share, he added.
The recovery in the company's non-strategic segments of personal electronics, communication, and enterprise, all of which delivered 20%-30% sequential growth in the third quarter, is being considered by investors as indicators of a potential recovery in the strategic industrial/automotive segments in the first half of 2025, the analyst stated.
"To support analog sales growth, firms need to invest in new equipment (rather than reusing existing equipment), and we do not foresee the industry (including foundries, joint ventures, and analog companies) keeping pace with the approximately six 300mm fabs that TI's roadmap outlines into the 2030s," he further wrote.
Price Action: Shares of Texas Instruments had risen by 3.46% to $200.69 at the time of publication on Wednesday.
Read More:
Image: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
