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TXN Likely to Beat Q4 Earnings Estimates: How to Play the Stock
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Key Takeaways
TXN is expected to post Q4 EPS between $1.13 and $1.39, with consensus at $1.30 per share.
TXN's Q4 results may benefit from recovery in industrial and automotive end markets.
TXN faces headwinds from China exposure and rising costs tied to capacity expansion.
Texas Instruments (TXN - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 27, after market close.
Texas Instruments expects earnings per share between $1.13 and $1.39. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at $1.30 per share, which remained unchanged from the year-ago period's reported figure.
The company anticipates revenues between $4.22 billion and $4.58 billion for the fourth quarter. The Zacks Consensus Estimate is pegged at $4.44 billion, suggesting growth of 10.7% 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 9.4%.
Texas Instruments Incorporated Price and EPS Surprise
Let’s see how things are shaping up for the upcoming quarterly results.
Factors to Consider for Texas Instruments
Texas Instruments’ fourth-quarter results are likely to be positively impacted by the gradual recovery in its industrial and automotive end markets, which have consistently contributed approximately 70% of its annual revenues.
TXN’s other end markets, including Personal Electronics, Enterprise Systems, and Communications Equipment, growth on the back of continued recovery in the semiconductor market, supported by strong data center-related growth, is likely to have positively impacted TXN’s top line in the to-be-reported quarter.
Customer demand trends are stabilizing, and customer inventories remain at low levels, which may support performance in the Analog and Embedded Processing segments during the fourth quarter. Our model estimates for Analog and Embedded Processing division’s fourth-quarter revenues are pegged at $3.53 billion and $618.7 million, respectively.
However, Texas Instruments’ fourth-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 the company in the to-be-reported quarter.
What Our Proven Model Says for TXN’s Q4 Earnings
Our proven model conclusively predicts 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 +0.35% and carries a Zacks Rank #2 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. AMETEK (AME - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMETEK is set to report fourth-quarter 2025 results on Feb. 3. The Zacks Consensus Estimate for AMETEK’s fourth-quarter 2025 earnings is pegged at $1.94 per share, up by a penny over the past 30 days, indicating a rise of 3.7% from the year-ago quarter’s reported figure.
Lam Research (LRCX - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present.
Lam Research is slated to report fourth-quarter 2025 results on Jan. 28. The Zacks Consensus Estimate for LRCX’s fourth-quarter 2025 earnings is pegged at $1.16 per share, unchanged over the past 30 days, indicating a rise of 27.5% from the year-ago quarter’s reported figure.
Fair Isaac (FICO - Free Report) has an Earnings ESP of +2.95% and carries a Zacks Rank #2 at present.
It is set to report first-quarter fiscal 2026 results on Jan. 28. The Zacks Consensus Estimate for Fair Isaac’s first-quarter earnings is pegged at $6.95 per share, up by 2 cents over the past 30 days, indicating a rise of 20% from the year-ago quarter’s reported figure.
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TXN Likely to Beat Q4 Earnings Estimates: How to Play the Stock
Key Takeaways
Texas Instruments (TXN - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 27, after market close.
Texas Instruments expects earnings per share between $1.13 and $1.39. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at $1.30 per share, which remained unchanged from the year-ago period's reported figure.
The company anticipates revenues between $4.22 billion and $4.58 billion for the fourth quarter. The Zacks Consensus Estimate is pegged at $4.44 billion, suggesting growth of 10.7% 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 9.4%.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
Let’s see how things are shaping up for the upcoming quarterly results.
Factors to Consider for Texas Instruments
Texas Instruments’ fourth-quarter results are likely to be positively impacted by the gradual recovery in its industrial and automotive end markets, which have consistently contributed approximately 70% of its annual revenues.
TXN’s other end markets, including Personal Electronics, Enterprise Systems, and Communications Equipment, growth on the back of continued recovery in the semiconductor market, supported by strong data center-related growth, is likely to have positively impacted TXN’s top line in the to-be-reported quarter.
Customer demand trends are stabilizing, and customer inventories remain at low levels, which may support performance in the Analog and Embedded Processing segments during the fourth quarter. Our model estimates for Analog and Embedded Processing division’s fourth-quarter revenues are pegged at $3.53 billion and $618.7 million, respectively.
However, Texas Instruments’ fourth-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 the company in the to-be-reported quarter.
What Our Proven Model Says for TXN’s Q4 Earnings
Our proven model conclusively predicts 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 +0.35% and carries a Zacks Rank #2 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.
AMETEK (AME - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMETEK is set to report fourth-quarter 2025 results on Feb. 3. The Zacks Consensus Estimate for AMETEK’s fourth-quarter 2025 earnings is pegged at $1.94 per share, up by a penny over the past 30 days, indicating a rise of 3.7% from the year-ago quarter’s reported figure.
Lam Research (LRCX - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present.
Lam Research is slated to report fourth-quarter 2025 results on Jan. 28. The Zacks Consensus Estimate for LRCX’s fourth-quarter 2025 earnings is pegged at $1.16 per share, unchanged over the past 30 days, indicating a rise of 27.5% from the year-ago quarter’s reported figure.
Fair Isaac (FICO - Free Report) has an Earnings ESP of +2.95% and carries a Zacks Rank #2 at present.
It is set to report first-quarter fiscal 2026 results on Jan. 28. The Zacks Consensus Estimate for Fair Isaac’s first-quarter earnings is pegged at $6.95 per share, up by 2 cents over the past 30 days, indicating a rise of 20% from the year-ago quarter’s reported figure.