Back to top

Image: Bigstock

TXN Set to Post Q3 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Key Takeaways

  • Texas Instruments expects Q3 EPS of $1.36-$1.60 and revenues of $4.45-$4.80 billion.
  • Recovery in industrial and automotive demand may boost TXN's Analog and Embedded units.
  • Higher manufacturing costs and China exposure could weigh on TXN's quarterly performance.

Texas Instruments (TXN - Free Report) is scheduled to report third-quarter 2025 results on Oct. 21, after market close.

Texas Instruments expects earnings per share between $1.36 and $1.60. The Zacks Consensus Estimate for third-quarter earnings is pinned at $1.47 per share, which indicates a year-over-year increase of 11.9%.

The company anticipates revenues between $4.45 billion and $4.80 billion for the third quarter. The Zacks Consensus Estimate is pegged at $4.65 billion, suggesting growth of 11.9% from the year-ago period's reported figure.

TXN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.23%.

Let’s see how things are shaping up for the upcoming quarterly results.

Factors to Consider for Texas Instruments

Texas Instruments’ third-quarter results are likely to be positively impacted by the continued recovery in its industrial and automotive end markets, which have consistently contributed approximately 70% of its annual revenues.

Moreover, TXN’s other end markets, including Personal Electronics, Enterprise Systems, and Communications Equipment, growth on the back of semiconductor cycle recovery is likely to have positively impacted TXN’s top line in the to-be-reported quarter.

It is anticipated that a recovery in the demand environment, as customers focus on rebuilding inventory, is likely to have a positive effect on the Analog and Embedded Processing segments' performance during the third quarter.

However, Texas Instruments’ third-quarter performance is likely to have affected by the U.S.-China trade war and tariff hikes, as TXN is a major player in China, accounting for more than 20% of its annual revenues in 2024.

As Texas Instruments is increasing its Lehi factory in Utah, it will incur costs. TXN's rising manufacturing costs due to planned capacity expansions and decreased factory loadings are likely to have been a major headwind for TXN in the to-be-reported quarter.

What Our Proven Model Says for TXN’s Q3 Earnings

Our proven model does not conclusively predict an earnings beat for Texas Instruments this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

TXN has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Intel (INTC - Free Report) has an Earnings ESP of +116.7% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Intel is set to report third-quarter fiscal 2025 results on Oct. 23. The Zacks Consensus Estimate for INTC’s third-quarter fiscal 2025 earnings has remained unchanged at breakeven over the past 30 days, indicating a rise of 100% from the year-ago quarter’s reported figure.

Lam Research (LRCX - Free Report) has an Earnings ESP of +1.26% and a Zacks Rank #2 at present.

Lam Research is slated to report fourth-quarter 2025 results on Oct. 22. The Zacks Consensus Estimate for LRCX’s fourth-quarter 2025 earnings is pegged at $1.21 per share, unchanged over the past 30 days, indicating a rise of 40.7% from the year-ago quarter’s reported figure.

NXP Semiconductors (NXPI - Free Report) has an Earnings ESP of +1.11% and carries a Zacks Rank #2 at present.

It is set to report third-quarter 2025 results on Oct. 27. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $3.11 per share, unchanged over the past 30 days, indicating a decline of 9.8% from the year-ago quarter’s reported figure. 

Published in