The stock of Texas Instruments (TXN) is up as much as 7% after the microchip and semiconductor maker reported strong quarterly financial results.
The Dallas, Texas-based company whose technology is widely used in motor vehicles and household appliances announced earnings per share (EPS) of $1.28, which was ahead of Wall Street’s consensus estimate of $1.07. Revenue in the quarter came in at $4.07 billion, which was better than analysts’ expectations that called for sales of $3.91 billion.
TXN stock is also getting a boost from the fact that management provided a strong revenue forecast for the current second quarter that surprised many analysts and investors. The outlook calls for Q2 2025 revenue of $4.17 billion to $4.53 billion. That was above the consensus estimate of $4.10 billion.
The company’s revenue by business segment. Source: Main Street Data
‘High Uncertainty’
Despite the solid results and strong near-term guidance, Texas Instruments’ cautioned that there is “high uncertainty” in the macro-economic environment right now due to tariffs and geopolitical tensions, which could impact the company in the year’s second half and leading into 2026.
Texas Instruments sells microchips that go into products in nearly every sector of the economy, from vehicles to consumer electronics. Because of its breadth and more than 100,000 customers worldwide, many analysts view Texas Instruments as a bellwether for the technology sector. TXN stock is down 13% this year.
Is TXN Stock a Buy?
The stock of Texas Instruments has a consensus Hold rating among 18 Wall Street analysts. That rating is based on seven Buy, eight Hold, and three Sell recommendations issued in the last three months. The average TXN price target of $192.07 implies 18.85% upside from current levels. These ratings are likely to change after the company’s financial results.
