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Texas Instruments (TXN) Stock Sinks As Market Gains: What You Should Know

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Texas Instruments (TXN - Free Report) closed the most recent trading day at $180.32, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.01% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.

The chipmaker's stock has dropped by 2.65% in the past month, falling short of the Computer and Technology sector's gain of 10.49% and the S&P 500's gain of 4.83%.

The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's earnings report is expected on October 21, 2025. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 0.68% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.64 billion, showing a 11.88% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.6 per share and revenue of $17.67 billion, which would represent changes of +7.69% and +12.96%, respectively, from the prior year.

Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. As of now, Texas Instruments holds a Zacks Rank of #3 (Hold).

With respect to valuation, Texas Instruments is currently being traded at a Forward P/E ratio of 32.58. This denotes a discount relative to the industry average Forward P/E of 50.71.

We can additionally observe that TXN currently boasts a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry currently had an average PEG ratio of 5.48 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.


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